Businesses borrow VND400 trillion at high interest rates, raising concerns about solvency
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13/03/2021
10:47
GMT+7
The financial health of many enterprises that issued bonds in 2020 is getting worse, with profits not high enough to pay bond interest.
According to Fiin Ratings, the total value of bonds issued by Vietnam’s enterprises in 2020 reached a record high at VND429.5 trillion, an increase of 28.3 percent over 2019. The figure was equal to 4.7 percent of the outstanding loans of the entire banking system for the year.
The Vietnamese corporate bond market is relatively large, equal to 15.1 percent of GDP and 10.3 percent of the outstanding loans of the banking system at the end of 2020.