On December 8, Fitch Ratings upgraded Vietnam's sovereign credit rating based on favorable medium-term growth prospects, underpinned by strong foreign investment flows.
Accordingly, Fitch Ratings has upgraded Vietnam's long-term national credit rating to BB+, with a "Stable" outlook.
This organization assessed that the challenges to the economy from difficulties in the real estate market and weakening global demand will have little impact on the macroeconomic outlook in the medium term, while abundant policy space will contribute to controlling risks in the short term.
Fitch Ratings has upgraded Vietnam's long-term sovereign credit rating to BB+, with a "Stable" outlook.
Economic growth will continue to underpin healthy public finances, with government debt forecast to remain lower than that of similarly rated peers.
In the medium term, Fitch Ratings forecasts Vietnam's economic growth at around 7% thanks to growth momentum from strong FDI inflows and abundant labor resources.
In addition, participation in the extensive regional and global FTA network in the context of supply chain diversification and upgrading relations with the United States to a “Comprehensive Strategic Partnership” will continue to promote stronger FDI attraction into Vietnam.
According to Fitch Ratings, Vietnam's foreign exchange reserves have gradually improved after a sharp decline in 2022 and will continue to improve in 2024 and 2025, reflecting returning capital inflows and a larger trade surplus.
One of the factors that Fitch Ratings highly appreciates in Vietnam's credit profile is that government debt is much lower than that of countries with the same BB rating.
The Government's favorable foreign debt structure and low foreign debt repayment obligations have contributed to reducing the foreign debt burden and strengthening the liquidity index.
In the medium term, budget revenue will be strengthened thanks to solutions to expand the tax base set out in Vietnam's Fiscal Strategy to 2030.
This organization believes that, along with the Vietnamese Government continuing to implement policies to support growth and stabilize the macro economy, the economy will regain growth momentum in the coming time.
Fitch Ratings's upgrade of Vietnam's national credit rating in the context of the world facing challenges of declining growth, economy, trade as well as increasing financial risks in many countries has demonstrated the international community's extremely positive assessment of the efforts of the Party, National Assembly and Government of Vietnam in recent times to stabilize the macro economy and restore the economy, and consolidate the political and social foundation.
Along with that are the efforts of the Ministry of Finance and related ministries and branches in regularly updating and periodically transmitting information on achievements and results in Vietnam's socio-economic development to credit rating organizations and the investor community.
The Ministry of Finance said it will continue to coordinate with Fitch Ratings and other credit rating organizations and international organizations to continue to have a full and updated assessment of Vietnam's credit profile .
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