G&P Global Ratings raises Vietnam's sovereign credit rating

27/05/2022 12:05

The S&P Global Ratings on May 26 raised its long-term sovereign credit rating on Vietnam to “BB+” with a “stable” outlook on the back of strong economic recovery, according to the Ministry of Finance.

It is a very positive move when S&P Global Ratings upgraded Vietnam’s sovereign credit rating amidst numerous global uncertainties and challenges, the ministry said in a statement, adding that it reflects an international recognition of Vietnam’s efforts to stabilise and recover the macro-economy and reinforce the socio-political foundation.

Vietnam is one of the only two Asia-Pacific nations that have had its ratings upgraded since the beginning of this year, factoring in that Vietnam’s economy remains on a solid track to recovery following the complete removal of domestic and cross-border mobility restrictions, outstanding improvement in COVID-19 vaccination rates and a flexible shift in virus control strategy.
It is also attributed to the considerable improvement in the government’s public administrative procedures, especially in terms of administering guaranteed debt obligations; Vietnam’s strong economic outlook and external position; and resilient FDI flows despite COVID-19 disruptions.
S&P Global Ratings anticipated that over the next 12 – 24 months, Vietnam’s economy will continue to recover from the challenges caused by the pandemic, which will support the external position and contain fiscal deficit.
It forecast that Vietnam’s GDP growth will reach 6.9 percent this year and maintain a long-term trend of growing 6.5 – 7 percent from 2023 onward./.
Source: VNA
 



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