Moody’s Investors Service upgraded Vietnam’s long-term national credit rating from “Ba3” to “Ba2”, or a Stable Outlook, on September 6.

This is a positive sign in the context of global fluctuations and challenges, revealing the international community’s appreciation of Vietnam’s efforts.

Moody’s also assessed that Vietnam’s economy will continue to benefit from the restructuring of global supply chains, diversifying exports, and the ability to continue to attract FDI into manufacturing and processing.

The upgrade also reflects a solid fiscal foundation supported by well-controlled borrowing costs, prudent fiscal policy management, and improved liquidity in the government’s debt portfolio. It also reflects the government’s tendency to gradually switch from foreign concessional loans to mobilizing loans in the domestic market at lower cost and with longer terms.

The effectiveness of Vietnam’s fiscal policy was recognized by Moody’s as one of the main factors contributing to its decision to upgrade.
Moody’s also assessed that Vietnam’s economic strength is underpinned by enhanced competitiveness and deeper participation in global value chains.

The increased competitiveness in the manufacturing and processing sector demonstrates the country’s superior performance compared to other countries of the same rank in the region and has contributed to rising incomes.

The Ministry of Finance affirmed it will continue to coordinate with Moody’s, other credit rating agencies, and international organizations to gain a full and up-to-date assessment of Vietnam’s credit profile.