3 credit rating agencies all rated Vietnam “positive”.

Credit Rating country is one of the important indicators objectively and independently evaluated by international organizations. The higher a country’s credit rating, the better its ability and willingness to meet its debt obligations. From 2013 up to now, Vietnam’s credit rating has always been on an upward trend.

All three of the world’s leading credit rating agencies, Moody’s, Standard & Poor’s and Fitch Ratings, have assessed that Vietnam has a “positive” outlook after a period of witnessing the improvement of the macro environment and financial stability. main Vietnam.

Specifically, the national credit rating is divided into 2 main levels, namely “investment” with 4 different ratings, the highest is AAA, high AA, medium high A and medium BBB. Next is the “underinvestment” level, which includes grades BB, B, and CCC, and the “speculative” level, which includes grades CC, C and D.

From 2013 up to now, Vietnam’s credit rating has always been on an upward trend. (Illustration image – Photo: Investment Newspaper)

With Vietnam’s national credit rating, for the first time on June 12, 2002, Fitch Ratings gave Vietnam a BB-, a “speculative” level with a “positive” outlook.

From 2002 to 2010, Vietnam continuously kept BB- and was downgraded to B- in July 2010 with a “stable” outlook. By November 2014, Vietnam had returned to BB- with a “stable” outlook.

In May 2018, Fitch Ratings once again upgraded Vietnam’s credit rating to BB, with a “stable” outlook.

Not only Fitch Ratings, over the past 10 years, the other two credit rating agencies, Moody’s and Standard & Poor’s, have also in turn upgraded the national credit rating of Vietnam.

Currently, Vietnam is rated at BB+ by organizations and has a “positive” outlook. If Vietnam strives to pass BB+ to the BBB “investment” level, this is the rating that Vietnam has set a goal to achieve by 2030.

Although each credit rating agency has its own methods of assessing and ranking countries, the common point is that all three of these organizations have very positive reviews for macroeconomic policies, especially indicators on assessing the international debt repayment capacity as well as the level of foreign exchange reserves of Vietnam.

On March 31, the Government of Vietnam signed Decision No. 412/QD-TTg approving the “Project to improve the national credit rating to 2030”. The specific objective of the Project is by 2030 to achieve a credit rating of Baa3 for Moody’s or BBB- for S&P and Fitch or higher.

Prospects of raising the national credit rating

As such, credit rating agencies all highly appreciate Vietnam’s improvement in the macro environment and financial stability, as well as what the Vietnamese economy has been doing to recover despite the difficulties. impact of COVID-19 globally.

Vietnam is also expected by international organizations to continue to prosper this year thanks to its macroeconomic policies, sustainable economic growth rate, high GDP growth rate and the ability to attract FDI.

“Vietnam has strong institutional reforms, the Government’s actions are very drastic. Investment in logistics infrastructure in Vietnam is changing very strongly. Those factors are the basis for world organizations to forecast. we can achieve high growth and at the same time achieve investment grade.Achieving a high national credit index is a condition to call for investors, to attract investment resources to help growth. economy”, said Mr. Hoang Van Cuong, member of the Finance and Budget Committee of the National Assembly.

“We expect Vietnam’s GDP growth to accelerate to 6.1% in 2022 and 6.3% in 2023. Therefore, Fitch Ratings forecasts efforts to maintain macroeconomic stability, striving for a high growth rate, further improving public finances will further improve the country’s credit rating in the coming time”, said Ms. Sagarika Chandra, Country Credit Director of Fitch Ratings in the region. Asia-Pacific region, said.

“Elevating the national credit rating to investment is very important and strategic for us to be able to access the capital market and borrow money at a reasonable and cheap cost. HSBC predicts GDP of Vietnam in 2022 is about 6.5% and about 6.5% for the coming years, so we are quite optimistic that Vietnam can achieve the investment credit rating in the next few years. or before 2030”, said Mr. Ngo Dang Khoa, Head of Foreign Exchange, Capital Markets and Securities Services Division of HSBC Vietnam.

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