Fitch upgrades ratings of Petrovietnam, Vietnam Electricty, subsidiaries to ‘BB+’
Fitch Ratings has upgraded the Long-Term Issuer Default Ratings (IDRs) of state-owned oil-gas group Petrovietnam, state utility Vietnam Electricity (EVN), and subsidiaries of the two power giants to “BB+” with a “Stable” outlook.
In a Wednesday release, Fitch said the latest action follows the upgrade of Vietnam’s long-term foreign-currency IDR to “BB+” last week.
Petrovietnam's facility at Bach Ho oilfield in the Cuu Long basin, offshore southern Vietnam. Photo courtesy of the Vietnam News Agency.
EVN’s rating is equalized with Vietnam’s latest sovereign rating, reflecting a strong likelihood of support by the state. EVN’s standalone credit profile (SCP) is assessed as “bb”, Fitch added.
The six EVN subsidiaries with updated ratings are EVN National Power Transmission Corporation (EVNNPT), EVN Southern Power Corporation (EVNSPC), Hanoi Power Corporation (EVNHANOI), Ho Chi Minh City Power Corporation (EVNHCMC), EVN Northern Power Corporation (EVNNPC), and EVN Central Power Corporation (EVNCPC).
EVNNPT’s SCP is “bb+” while that of five power corporations EVNHANOI, EVNHCMC, EVNSPC, EVNNPC, EVNCPC is “bb,” Fitch noted.
Petrovietnam's rating reflects its SCP of 'bb+', the same level as the IDR of its parent, the Vietnam sovereign, Fitch highlighted. Three PVN subsidiaries with new ratings are PetroVietnam Power Corporation (PV Power), PetroVietnam Gas (PV Gas) and Binh Son Refining and Petrochemical (BSR).
Fitch revised PV Power's SCP to 'bb+' from 'bb' in line with its key counterpart, EVN. SCP was previously constrained by PVN's IDR, even though PV Power's financial profile is stronger than its SCP assessment indicates, Fitch stressed.
PV Gas' rating reflects its SCP of 'bb+', which is at the same level as that of the parent, PVN. BSR's rating is equalised with that of its parent, PVN, based on Fitch's rating criteria.
On December 8, Fitch Ratings upgraded Vietnam's Long-Term Foreign-Currency Issuer Default Rating (IDR) to “BB+”, from “BB” with a stable outlook. The upgrade reflects Vietnam's favorable medium-term growth outlook, underpinned by robust foreign direct investment (FDI) inflows, which Fitch Ratings expects will continue to drive sustained improvements in its structural credit metrics.
- Related News
- Read More
Draft parliament resolution: A breakthrough for Vietnam's international financial center ambition
Tran Thuy Ngoc, deputy general director, financial services industry leader at Deloitte Vietnam, provides an insight into the draft resolution on Vietnam’s International Financial Center (IFC) which is scheduled to be endorsed by the legislature on June 27.
Consulting - Wed, June 18, 2025 | 12:37 pm GMT+7
Vietnam budget carrier Vietjet places new order for 100 A321neo aircraft
Vietjet and aircraft manufacturer Airbus on Tuesday announced a major new order for 100 A321neo aircraft, with the potential to add another 50 in the future.
Companies - Wed, June 18, 2025 | 11:37 am GMT+7
FDI yet to create high added value in Vietnam: legislator
Foreign direct investment (FDI) has not yet created high added value, primarily focusing on assembly and processing, said Nguyen Ngoc Son, a lawmaker from the northern province of Hai Duong.
Economy - Wed, June 18, 2025 | 9:19 am GMT+7
Trungnam Group subsidiary okayed as investor of $148 mln industrial park project in central Vietnam
A subsidiary of Vietnamese private conglomerate Trungnam Group has been approved as the investor of the 378-hectare Ca Na Industrial Park-Phase I project in the south-central province of Ninh Thuan.
Industrial real estate - Wed, June 18, 2025 | 8:00 am GMT+7
Deputy PM requests strong reforms of state-owned enterprises
Deputy Prime Minister Nguyen Chi Dung has asked for bold and strategic reforms to unlock the full potential of state-owned enterprises (SOEs), requesting a clear shift in mindset and approach to governance, investment and development.
Companies - Tue, June 17, 2025 | 11:44 pm GMT+7
Petrovietnam subsidiary PTSC hands over 33 offshore wind power foundations to Danish giant Orsted
The recent handover of 33 foundations manufactured by Petrovietnam Technical Services Corporation (PTSC) to an offshore wind power project of Orsted has been recognized as an outstanding work of state-owned Petrovietnam.
Companies - Tue, June 17, 2025 | 11:35 pm GMT+7
Energy Asia 2025 kicks off in Malaysia
Energy Asia 2025 - a premier thought leadership and business advocacy forum, championing Asia’s pivotal role in the global energy transition - kicked off in Kuala Lumpur, Malaysia, on Monday.
Southeast Asia - Tue, June 17, 2025 | 11:29 pm GMT+7
Indonesia to start operating first ocean power plant in 2028
Indonesia’s Energy and Mineral Resources Ministry has announced that construction of the country's first ocean power plant will begin soon, with operations targeted to start in 2028.
Southeast Asia - Tue, June 17, 2025 | 11:27 pm GMT+7
Provincial police chief appointed chairman of Vietnam's telecom giant MobiFone
The Ministry of Public Security has appointed Major General Truong Son Lam, director of Ben Tre province's Police Department, as chairman of MobiFone's board of members.
Economy - Tue, June 17, 2025 | 10:14 pm GMT+7
Trump family to receive $5 mln in license fees for mega golf course development in Vietnam
The Trump family business is set to receive $5 million in license fees for a mega golf course complex in the northern Vietnam province of Hung Yen, according to a financial disclosure report released by the U.S. Office of Government Ethics.
Real Estate - Tue, June 17, 2025 | 9:26 pm GMT+7
Vietnam continues to drill oil discoveries, helping to ensure national energy security: broker
Vietnam has been consistently discovering oil in wells across both producing and developing fields, which, according to leading broker Vietcombank Securities (VCBS), will help ensure national energy security amid a rapid decline in domestic gas supplies.
Economy - Tue, June 17, 2025 | 5:08 pm GMT+7
Chinese companies seek to further partner with Vietnam Electricity
Several Chinese companies met with state utility Vietnam Electricity (EVN) between May 27 and June 12, seeking more cooperation opportunities.
Companies - Tue, June 17, 2025 | 3:50 pm GMT+7
Unilever to expand investment capital at southern Vietnam plant to $105 mln
Unilever Vietnam plans to raise the investment capital of its factory in Ho Chi Minh City, a southern metropolis, to VND2.7 trillion ($104.5 million), according to a recent environmental impact assessment report.
Industries - Tue, June 17, 2025 | 2:45 pm GMT+7
VAT in Vietnam cut to 8% for July 2025-Dec 2026 period
The National Assembly, Vietnam's legislature, has reduced the VAT rate from 10% to 8% for goods and services from July 1, 2025 to December 31, 2026.
Economy - Tue, June 17, 2025 | 2:13 pm GMT+7
Subsidiaries, affiliates ineligible for preferential corporate income tax in Vietnam
Subsidiaries and affiliates of enterprises in Vietnam will not be eligible for preferential corporate income tax (CIT) rates of 15-17%, starting from October 1, a move aimed to prevent abuse of incentives.
Economy - Tue, June 17, 2025 | 1:26 pm GMT+7
Vietnam Airlines to launch direct routes to Northern Europe, Italy
Vietnam Airlines will open a direct route from Vietnam to Italy on July 1, and another to Northern Europe on December 15, expanding its network to European countries, the national flag carrier stated on Monday.
Companies - Tue, June 17, 2025 | 12:05 pm GMT+7
