The Ministry of Finance said, the upgrade reflects Vietnam's favorable medium-term growth outlook.
According to the rating organization, it has increasing confidence that near-term economic headwinds are unlikely to affect medium-term macroeconomic prospects, and that policy buffers are sufficient to manage near-term risks.
Fitch Ratings forecasts Vietnam will achieve a medium-term growth of around 7% thanks to its cost competitiveness, educated workforce relative to peers, and entry into regional and global free-trade agreements bode well for continued strong FDI inflows amid global supply chain diversification.
Vietnam's external debt composition remains favorable, as most of the debt is owed to bilateral and multilaterals. This leads to a lower external debt service burden and supports its high external liquidity ratio.
Fitch Ratings believes that as the Vietnamese Government continues to implement policies to support growth and stabilize the macroeconomics, Vietnamese economy will regain growth momentum soon./.
