Moody’s upgrades Vietnam’s ratings to Ba2, outlook to stable
Hanoi (VNA) – The Finance Ministry said on September 6 that Moody’s Investors
Service has upgraded Vietnam’s long-term issuer
and senior unsecured ratings to Ba2 from Ba3 and changed the outlook to stable
from positive.
The ministry said the upgrade to Ba2 reflects the assessment by Moody's that Vietnam's economy has growing strengths and greater resilience to external macroeconomic shocks that are indicative of improved policy effectiveness.
Moody's expects the situation would continue as the economy benefits from supply chain reconfiguration, export diversification and continued inbound investment in manufacturing.
The rating also reflects a sounder fiscal
footing backed by contained borrowing costs, a conservative approach to fiscal
policy and improved government liquidity, driven by the ongoing transition from
external concessional borrowing toward longer-dated, low-cost domestic market
financing, said the ministry.
Amid complicated developments in the world in the
past eight months, Vietnam is the only in Asia-Pacific and one of the four
countries globally to have ratings upgraded by Moody’s since early this year./.