Rating and Investment Information, Inc. (R&I) on October 8 upgraded Vietnam’s foreign-currency issuer credit rating from BB+ with a “Positive” outlook to BBB- with a “Stable” outlook, citing the country’s growth prospects, fiscal headroom, reform progress and resilience to external shocks.
R&I said Vietnam’s economic growth outlook remained a key strength underpinning its credit profile. Strong growth is expected to continue as the economy gradually shifts towards a model driven more by productivity and innovation, supported by increased public investment and sustained foreign direct investment (FDI) inflows.
The agency also viewed the consistent implementation of comprehensive reforms positively, saying continued progress could help Vietnam maintain high and more stable economic growth.
Fiscal capacity was another important factor in the upgrade. R&I noted that Vietnam’s public debt-to-GDP ratio remained relatively low, providing room for higher development investment spending.
Although the agency expects the budget deficit and public debt ratio to rise in the coming years, it does not currently see significant risks to debt sustainability. Expanded public investment could support future growth, while the Government’s focus on controlling recurrent expenditure would help preserve fiscal balance.
Vietnam’s resilience to external shocks was further supported by its external-sector position. R&I highlighted the country’s continued current account surplus, sustained FDI inflows and relatively low external debt burden.
The upgrade reflects R&I’s assessment that Vietnam’s growth potential, fiscal flexibility, ongoing reforms and external buffers provide important support for its creditworthiness.
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