Fin Min disagrees with Moody’s review to downgrade Vietnam’s rating
The ministry affirmed the Government of Vietnam has never been tardy in meeting its debt obligations.
The Vietnamese Ministry of Finance has expressed its disapproval of Moody’s Investors Service’s decision to put Vietnam's sovereign rating under review for downgrade, and affirmed that the Vietnamese government has always serviced its obligations in a timely manner.
The headquarters of the Ministry of Finance in Hanoi
|
The weaknesses seem to reflect deficient coordination and planning among various arms of the government to meet some of the government's obligations in a smooth and timely manner, the agency explained, without specifying which obligation triggered the warning.
The ministry asserted that the obligation is guaranteed by the Government, meaning that it is a provisional obligation, not a direct one.
“The Government of Vietnam has fulfilled the responsibility of the guarantor in payment of the obligation, even when it is yet to receive the order of the Creditor,” the ministry said in a statement on its website. “The Government has never been tardy in meeting its obligations.”
The ministry said Moody’s decision to place the country’s rating under review for downgrade based on just a single incident is improper, without taking into account the Government’s efforts to ensure macroeconomic stability.
That Moody’s issued a press release while being unclear of processes and mechanisms under which government-guaranteed debts are serviced could lead to misunderstanding by international investors about Vietnam’s ability to pay back debts and may taint its credibility and prestige in the international arena, the ministry noted.
The ministry affirmed it stands ready to provide necessary and accurate information for Moody’s and other rating agencies to clarify the issue.
In its announcement, Moody’s said that Vietnam's large foreign exchange reserves and modest government financing requirements denote ample capacity to meet debt obligations and Vietnam's credit profile will remain underpinned by strong growth potential.
At a press meeting on Thursday morning, Jacques Morisser, lead economist of the World Bank in Vietnam, commented that Vietnam had sufficient financial resources to meet its debt obligations, given its ample forex reserves and moderate public spending over the past few years. The key issue was the deficient coordination of government agencies.
22:59, 2024/12/24
Hanoi to attract US$768 million in industrial parks in 2024
Companies in Hanoi highlighted the significant improvements in the business environment in Vietnam, particularly in the capital, where it has become easier to operate in the industrial zones.
11:03, 2024/12/23
Stronger decentralization key to Hanoi's urban railway ambitions
With transformative policies that include amendments to the Capital Law and specific proposals for urban rail projects, Hanoi is committed to achieving its intended goals for urban rail development.
21:35, 2024/12/21
Regulatory efforts underway to strengthen e-commerce in Vietnam
By 2025, Vietnam's e-commerce is expected to reach 10% of retail sales and contribute to the digital economy which is estimated to account for 20% of GDP.
11:26, 2024/12/21
OCOP and agricultural products promotion week underway in Hanoi suburb
The event is part of the "Vietnamese Prefer to Use Vietnamese Goods" campaign.
14:48, 2024/12/20
Vietnamese Gen Z's green mission
Founded by a group of Gen Z Vietnamese, the Vietnam Carbon Credit Project aims to bring multiple environment benefits and expand operations abroad.
06:50, 2024/12/20
Hanoi's flower villages are in full Tet preparation mode
Flower villages in Hanoi are busy preparing for Tet, the year's most important traditional festival for Vietnamese people.
- Regional, international financial centers mean boosters to Vietnamese economy: Deputy PM
- Bia Ha Noi brings you golden luck in Lunar New Year
- Hanoi seeks greater efficiency in e-commerce tax management
- Hanoi's wet markets in decline amid changing consumer behaviors
- Heavy fines for unhygienic street vendors in Hanoi
- Prime Minister urges acceleration of social housing projects