The delegation from S&P Global Ratings included Mr. Guy Deslondes, Global Head of Emerging Market Development (based in Milan), and Ritesh Maheshwari, Head of Southeast Asia and Head of Market Outreach for Asia-Pacific. Nguyen Quang Thuan, Chairman and CEO of FiinRatings, also attended the meeting.
Vietnam at a “Turning point” of growth but facing banking sector pressure
Speaking at the meeting, Guy Deslondes noted that Vietnam is currently at a critical turning point with strong growth potential. After achieving impressive economic growth in 2025, the country is targeting even more ambitious goals in the coming years, including the possibility of double-digit growth.
Mr. Guy Deslondes, Global Head of Emerging Market Development
However, he pointed out that Vietnam’s banking system is under greater pressure than those of many Southeast Asian peers. The primary reason is that the domestic capital market has not yet developed in line with the scale of the economy, leading to heavy reliance on bank credit as the main source of funding for economic growth. This situation places additional strain on banking sector safety indicators.
According to Deslondes, this highlights the urgent need to develop Vietnam’s capital markets, enabling the economy to shift from a bank-credit–driven model toward more transparent and sustainable public funding channels.
Bank credit remains the main funding source
Dr. Nguyen Quoc Hung emphasized that the Vietnamese government and the banking sector are fully aware of the enormous pressure on banks to supply capital to the economy.
In recent years, the banking sector has mobilized significant resources to support economic development, with credit growth reaching approximately 18–19% in the previous year. For 2026, however, the credit growth target has been adjusted down to around 15% in order to ensure system stability, despite the continued strong demand for capital.
Hung stressed that relying solely on bank funding will not be sufficient to support Vietnam’s long-term growth objectives. The country must diversify its financing sources through public investment, domestic capital markets, and international capital flows.
Fiscal space and opportunities for international capital
According to VNBA, Vietnam’s public debt remains below 40% of GDP, which is considered a safe level and indicates that the country still has room to access additional external financing.
Nevertheless, the key issue is not merely the volume of capital mobilized but ensuring efficient and transparent use of funds by businesses.
Limitations of the capital market and corporate bond market
Despite nearly 30 years of development, Vietnam’s stock market remains relatively small compared with the size and potential of the economy.
Meanwhile, the corporate bond market has shown certain structural weaknesses. In some cases, bond issuances have effectively functioned as extensions of bank credit, with funds being used to refinance bank debt or invested in risky sectors rather than supporting productive business activities as originally intended.
Credit ratings as a key tool for market transparency
VNBA representatives highlighted the need to clearly separate the roles of the money market and the capital market. Banks should no longer act as uncontrolled guarantors of bond issuances; instead, independent credit rating agencies should play a larger role in evaluating corporate risk and pricing financial instruments.
Enhancing transparency, particularly in corporate disclosure during listing and bond issuance processes, is considered essential to strengthening investor confidence.
Green bond prospects and international investor engagement
The meeting also discussed the potential development of green bonds in Vietnam. VNBA noted that several Vietnamese banks have successfully raised funds through green bond issuances with the participation of international institutions such as IFC and the World Bank, demonstrating the strong potential for attracting global capital to transparent and sustainable projects.
S&P Global Ratings representatives added that the organization plays an important role in bridging information gaps between Vietnam and global investors such as BlackRock, Fidelity, and JPMorgan, primarily through in-depth analytical reports and thematic seminars.
They also noted that international investors’ caution toward Vietnam may stem from two factors (i) A limited supply of financial products suitable for global investors; (ii) Concerns regarding the health of the banking sector, particularly non-performing loans and capital adequacy ratios (CAR).
Strengthening cooperation and aligning with international standards
At the conclusion of the meeting, the parties agreed to develop a cooperation roadmap aimed at helping VNBA member institutions move closer to international standards in credit ratings and capital market access.
VNBA also proposed organizing seminars and discussions with experts from S&P Global Ratings and FiinRatings to share global economic scenarios and analyze the impact of geopolitical risks on Vietnam’s banking sector.
Such cooperation is expected to help Vietnamese banks enhance risk management capacity, improve credit ratings, and expand their access to international capital markets in the future.
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