The ratings to Ba3 are thanks to Viet Nam’s strong growth potential, which is supported by the increasingly efficient use of labor and capital in the economy. Viet Nam’s economic strength is the connection between high growth and competitiveness manifested in the economy, which is heading to higher value added areas.
The maintenance of strong growth helps stabilize and gradually control the Government’s debt.
Long average maturity of Government debts and a diminishing reliance on foreign currency debt point to a stable and gradually moderate the government’s debt burden. Government debt structure limits susceptibility to financial shocks.
The growth potential is supported from huge investment, including Foreign Direct Investment in higher valued added areas.
Moody’s expects that the growth in production will boost the economy’s economic growth.
By Thuy Dung
