Moody’s upgrades VN’s ratings from B1 to Ba3

VGP – Moody’s Investor Service leveled up the Vietnamese Government’s long-term issuer and senior unsecured ratings from B1 to Ba3 and changed the outlook from positive to stable, according to the Ministry of Finance.

August 14, 2018 4:10 PM GMT+7

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