According to the Ministry of Finance, Moody's upgrade of Vietnam's national credit rating to Ba2 reflects its assessment of Vietnam's ongoing increasingly stronger economy and resilience to external macro shock.
Moody assesses that Vietnam’s economic strength will continue to benefit from global supply chain restructuring, diversified exports and the ability to attract foreign investment flows into the manufacturing and processing sectors.
The upgrade results also reflect a sustained fiscal consolidation supported by reasonably controlled borrowing costs, prudent fiscal policy management, and improved liquidity of the Government debt portfolio. This also reflects the Government's tendency to gradually switch from foreign concessional loans to mobilizing loans in the domestic market with low cost and longer terms.
According to Moody's assessment, Vietnam's economic strength is underpinned by enhanced competitiveness and deeper participation in global value chains. The increased competitiveness in the country’s manufacturing, processing, and manufacturing sectors demonstrates superior efficiency compared to other countries of the same rank in the region and has contributed to the improvement of Vietnamese people’s income.
The fact that Vietnam has signed many bilateral and regional trade agreements has affirmed its expanding position in the global value chain. Moody assesses that these free trade agreements will help improve Vietnam's competitiveness in the commodity portfolio with lower added value, while firmly consolidating Vietnam's position in the supply chain of technology products with high added value.
In the context that 30 countries’ ratings were lowered grades in the first eight months of the year, Vietnam is the only country in the Asia-Pacific region that has been upgraded by Moody's since the beginning of the year until now.
