Vietnam striving for higher sovereign credit ratings by 2030 hinh anh 1Illustrative photo. (Source: VNA)

Hanoi (VNA) – Deputy Prime Minister Le Minh Khai has approved the sovereign credit rating improvement project by 2030, part of an effort to make Vietnam a developing and upper-middle-income country with modern industry, heightening the country’s international reputation and reducing credit risks.

The country sets to raise its credit rating to Baa3 or better on Moody’s scale and BBB- or better on the Standard & Poor’s and Fitch by 2030, which are considered as “investment-grade”.

Under the project, the annual GDP growth during the period will average about 7 percent, with per capita GDP at the current price by 2030 reaching about 7,500 USD, and total social investment accounting for some 33 – 35 percent of the GDP.

Vietnam will also better control the State budget overspending, aiming to reduce the overspending to around 3 percent of the GDP and ensure that public and government debts will not exceed 60 percent and 50 percent of the GDP, respectively.

Vietnam striving for higher sovereign credit ratings by 2030 hinh anh 2At a transaction branch of Vietcombank. (Photo: VNA)

The main solutions are to build a strong public financial system, improve debt indexes, promote fiscal consolidation, enhance the transparency of fiscal policies, manage investment plans on a medium-term basis, and foster the harmony between the medium-run investment and the national financial plans.

Additionally, the project highlighted the need to enhance the structure and quality of the banking system and State-owned enterprises to lower risks for the State budget, and strengthen regulatory framework on providing loans and expanding credit growth, with a focus on production and the Government’s priority areas.

Vietnam’s current credit rating on S&P and Fitch’s scale stands at BB while the country receives the rating of Ba3 on the Moody’s./.