PVIAM decides to apply domestic credit ratings by FiinRatings for enhancing investment management

Hanoi, September 21, 2023 - In the Seminar on Solutions to the Development of the Vietnamese Corporate Bond Market organized by FiinRatings, FiinRatings Joint Stock Company (FiinRatings) and PVI Asset Management Joint Stock Company (PVIAM) signed a cooperation agreement on the application of FiinRatings' domestic credit ratings in PVIAM's investment management activities.

Hanoi, September 21, 2023 - In the Seminar on Solutions to the Development of the Vietnamese Corporate Bond Market organized by FiinRatings, FiinRatings Joint Stock Company (FiinRatings) and PVI Asset Management Joint Stock Company (PVIAM) signed a cooperation agreement on the application of FiinRatings' domestic credit ratings in PVIAM's investment management activities.

In specific, the two parties will implement cooperation in the following activities:

• FiinRatings provides Vietnamese banking industry analysis and credit assessment services to support PVIAM in its investment and risk management including asset allocation activities, as well as its investment activities in debt instruments issued by financial institutions.
• PVIAM uses FiinRatings' credit ratings or credit assessments on debt issuers, including corporate bonds, to support its investment management and risk management activities.
• The two sides will strengthen market information sharing and cooperate in the application of good practices in investment risk management, developing corporate bond yield curves, bond pricing, and sharing solutions to support and contribute to the sustainable development of the Vietnamese corporate bond market.

Speaking at the Seminar, Ms. Trịnh Quỳnh Giao, CEO of PVIAM, said that "The use of domestic credit ratings will help PVIAM supplement a more independent and comprehensive system in evaluating investment opportunities and risk management. Although Vietnamese banks almost all have international credit ratings, the international rating range is narrow, and it does not reflect a clear credit differentiation among banks in the domestic market. PVIAM believes that the use of FiinRatings' independent domestic credit ratings will provide additional information to enhance deposit allocation decisions, optimize investment efficiency. More importantly, PVIAM hopes to be a pioneer fund in using independent opinions in managing the risk of its investment portfolio in order to enhance its initiative and transparency to investors, thereby also contributing to develop a more sustainable and secure Vietnamese capital market. "

Mr. Nguyễn Quang Thuân, CEO of FiinRatings, shared that "Independent credit ratings will be more meaningful for the recovery and development of the capital market if they are widely used by investors, not only retail or individual investors but institutional investors. We are very pleased that a large financial and investment institution like PVIAM has officially used the results of domestic credit ratings for investment management and asset allocation, including corporate bonds, which is a milestone for developing the rating culture in Vietnam. In the context where regulations on credit rating have not yet been applied as customary like in regional and global markets, the proactive cooperation between market participants will contribute step by step to the sustainable development of the Vietnamese capital market."

When evaluating the domestic market, domestic credit ratings have a wider range of scores that are not limited by the national rating limit by international credit rating agencies. This helps investors to classify more specifically and clearly the credit quality of Vietnamese enterprises to implement effective investment and risk management plans. In addition, familiarity with the credit rating of bond issuers and investment products will promote the formation of positive habits in the investment community, contributing to the transparency of the Vietnamese capital market. Investors are the most important driving force for the development of the capital market, therefore the requirement for credit ratings will encourage enterprises to proactively and comply with this when issuing bonds, creating good practices in issuance procedures and documents.

The cooperation signing ceremony between the two parties took place within the framework of the Seminar on Solutions to the Development of the Vietnamese Corporate Bond Market. Representatives of FiinRatings and PVIAM discussed the situation and prospects of the Vietnamese Corporation Bond market as well as proposed solutions to restore this important medium- and long-term capital channel to support Vietnam's high and sustainable economic growth.

About FiinRatings

FiinRatings Joint Stock Company (“FiinRatings”), a member of FiinGroup and a technical collaboration partner with S&P Global Ratings, is a local licensed Credit Rating Agency in Vietnam. FiinRatings provides credit ratings and related services to issuers, creditors and investors in Vietnam credit market. FiinRatings is also Vietnam first green bonds approved verifier, in accordance with the green bond international standard by the Climate Bonds Initiative. For more information, visit: https://www.fiinratings.vn

FiinGroup is Vietnam’s leading provider of financial data analytics platforms, business intelligence and industry research service to local and foreign investors in capital market and corporates to grow their business in Vietnam. For more information, visit: https://www.fiingroup.vn

About PVIAM

As one of the top 10 asset management companies with the largest entrustment and investment advisory value in the Vietnamese market, PVI AM is specialized in providing fund management, portfolio management and investment advisory services with high efficiency and standards, balancing profitability and risk management, bringing sustainable benefits to clients and partners. PVI AM is a member of PVI Holdings, inheriting its capacity and asset management experience of more than 25 years. In addition, the company also enjoys outstanding synergy in terms of financial scale, brand position and network of partners and clients with other members of PVI Holdings including PVI Insurance Corporation (PVI Insurance), Hanoi Reinsurance Joint Stock Corporation (Hanoi Re). PVI AM receives significant support from PVI Holdings and Talanx Group - Germany's third largest insurance institution, which brings special advantages to PVI AM in search of investment opportunities in Vietnam. For more detailed information, please visit: https://www.pviam.com.vn/

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