Hanoi (VNA) – Moody's Investors Service
(Moody's) has maintained the
Government of Vietnam's long-term issuer and senior unsecured ratings at Ba3
and changed the outlook to positive from negative.
The drivers of the positive outlook include signs of
improvements in fiscal strength and potential improvements in economic strength
that may strengthen Vietnam's credit profile over time. Sustained fiscal
consolidation has led to improvements in fiscal and debt metrics, which Moody's
expects to be only briefly interrupted by the pandemic.
Moreover, Vietnam's economic strength may benefit from
global shifts in production, trade and consumption following the coronavirus
pandemic. Over time, indications of higher fiscal
and economic strength may point to improving policy effectiveness, also putting
upward pressure on Vietnam's credit profile.
The affirmation of the Ba3 rating is underpinned by ongoing
credit strengths and weaknesses, including a large, diversified economy with
high growth potential offering resilience to shocks, and increasing capacity in
the domestic financial system to finance government borrowing at low costs.
Vietnam's local- and foreign-currency ceilings are unchanged
at Baa3 and Ba2, respectively.
In its evaluation, Moody’s also considered other factors
such as the environment, society, air pollution, extreme weather conditions, which
it held that Vietnam should give greater attention to.
Moody’s raising of two positions in
outlook prospect is an unprecedented move in its ranking globally since the start of the COVID-19 pandemic, which is a considerable recognition for