Moody’s increases credit rating for Vietnam

The Ministry of Finance announced yesterday that the bond credit rating Moody’s Investors Service (Moody’s) raised the rank of long-term Vietnamese government bonds via foreign currency and unsecured loan from B1 to Ba3. It also changed the outlook from ‘positive’ to ‘stable’.

Moody’s increases credit rating for Vietnam

The increase to the rank of Ba3 is on account of Vietnam’s strong potential economic growth, supported by the effective use of human resources and capital in the economy.

It is also thanks to the stability of government debt, the gradual decrease of debt by foreign currency, and the debt structure with a fairly long paying-back term. This has helped to reduce the exposure of the Vietnamese economy to a sudden increase of loan fees and / or currency devaluation.

Call-up capital sources have also shown a fair stability of government debt when facing financial shocks.

By HA MY – Translated by Yen Nhi

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