70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Industry
Global rating agencies raise Vietnam's outlook to “positive”
Ngoc Thuy 16:59, 2021/05/22
Flexible management of fiscal policy and public debt under control have played a part in helping Vietnam cope with the pandemic.

Vietnam is the only country in the world having its outlook upgraded to “positive” by three major rating agencies of Moody’s, Standard and Poor’s (S&P), and Fitch since the Covid-19 outbreak.

 S&P raises Vietnam's outlook to positive. Photo: RICHARD B. LEVINE/Newscom

S&P on May 21 announced its decision to keep Vietnam’s sovereign rating unchanged while raising the outlook from “stable” to “positive”.

S&P explained a positive assessment on Vietnam’s prospect was due to the country’s impressive economic achievements and continuous regulatory reform at a time when the pandemic is causing negative impacts on socio-economic development.

Following Vietnam’s GDP growth among the highest in the world last year, S&P expected the country would continue to maintain its economy in good shape for recovery in one or two years, thanks to effective measures to contain Covid-19 situation domestically; an attractive investment destination in Southeast Asian for FDI inflows; stable trade performance; and strong domestic demand.

Meanwhile, the flexible management of fiscal policy and public debt under control have also played a part in helping Vietnam cope with the pandemic.

The pandemic has caused the global economic recession, with rating agencies dropping their ratings and outlooks last year for countries/territories by 124 and 133 times, respectively.

As of May 21, 16 countries received low ratings from Moody’s, S&P, and Fitch.

Vietnam’s Ministry of Finance (MoF) said the country remains steadfast in pursuing the goal of stabilizing macro-economic conditions, bolstering economic resilience, and pushing for institutional reform along with efforts against the pandemic.

“This would help the country create a solid foundation to realizing its mid-and long-term goals, as well as raising the rating outlook,” said the MoF.

In April, Fitch revised Vietnam's outlook to positive from stable, while affirming the Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB'.

Moody’s in March announced a similar move, saying “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.”

RELATED NEWS
TAG: Vietnam S&P stable positive outlook rating Covid-19 pandemic ncov Moody\'s Fitch Rating
Other news
17:01, 2024/06/18
"Best lychees from Vietnam” campaign launched in Thailand
This new approach aims to change the way Thai consumers perceive Vietnamese agricultural products.
12:23, 2024/06/13
Vietnam, Germany eye cooperation on energy transition
Germany stands ready to cooperate with Vietnam on energy transition through the Just Energy Transition Partnership (JETP).
11:18, 2024/06/13
Deputy PM presses for new electricity pricing scenarios in June
Any increase in electricity prices should be carefully planned in terms of size and timing to ensure market alignment, reduce losses for EVN, and meet inflation control goals.
15:30, 2024/06/11
UOB predicts Vietnam’s GDP to grow by 6% in Q2
Along with the 6% forecast for Q2, UOB maintains Vietnam’s annual growth forecast at 6% for the year.
14:52, 2024/06/11
Vietnam to release national green criteria
For Vietnamese companies wanting to go international and attract foreign investment, green standards are crucial.
22:10, 2024/06/08
Hanoi to hold dialogue with FDI firms in August
The event will be attended by the representatives of between 50 and 60 foreign companies that are active in Hanoi.