Enhancing the Role of Credit Rating Agencies for the Stable Development of the Corporate Bond Market in Vietnam

Abstract

The development of the corporate bond market is extremely important for the economy. For the corporate bond market to develop stably, in addition to the role of State management Agencies, the role of credit rating agencies (CRAs) is essential. This article analyzes the current state of the corporate bond market and credit rating activities in Vietnam. With the data and information collected, using descriptive statistics and comparative analysis methods, research results show that Vietnam's corporate bond market in the period 2015–2020 has grown quite steadily; However, in the period 2021–2022 there has been a significant decline. Besides, in the period 2019 –2023, the number of Vietnamese corporates with credit ratings is very low. Therefore, to enhance the role of CRAs in stably developing the corporate bond market, the article has proposed a number of recommendations related to CRAs and credit rating activities in Vietnam.