Moody’s upgrades Viet Nam’s credit outlook to "Positive"

Moody's has revised Viet Nam's sovereign credit outlook from "Stable" to "Positive," while affirming the country's long-term issuer and senior unsecured ratings at Ba2, announced the Ministry of Finance on May 4.

This assessment reflects international recognition of Viet Nam's efforts to maintain macroeconomic stability and advance institutional reform.

It also provides a basis for the nation to continue pursuing its development goals, aiming for higher growth associated with a shift in its growth model.

The decision reflects Moody's rising confidence in Viet Nam's medium-term credit outlook, citing clear improvements in institutional quality and governance, fueled by a reform wave that has hit administrative procedures, legal frameworks and the public sector since late 2024.

The reform process is beginning to yield initial results. Institutional restructuring has helped reduce administrative layers, streamline ministries, and enhance coordination among agencies. As a result, efficiency in project approval processes and governance has improved.

These achievements contribute to improving the institutional score in Viet Nam's credit rating profile while supporting macroeconomic stability and reducing potential risks.

In addition, the economy's competitiveness continues to improve via the promotion of digitalization, infrastructure investment, enhancement of human resource quality, and the development of capital markets.

Moody's has noted that the risks arising from U.S. protectionist measures have decreased compared to previous forecasts. At the same time, Viet Nam maintains its resilience through economic growth and foreign direct investment inflows.

These factors contribute to strengthening the nation's position in global supply chains.

The decision to maintain the credit rating at Ba2 reflects Moody's assessment that the core elements of Viet Nam's credit profile remain intact. It provides a foundation for further consolidation of the current rating level.

Viet Nam's growth potential continues to be a key driver. A diversified export base, recovering domestic demand, and foreign direct investment inflows all play a role in supporting macroeconomic stability.

In addition, fiscal metrics remain stable, with government debt at a low and steady level. Debt servicing capacity is ensured, while dependence on external funding sources is reduced.

Moody's also assesses that Viet Nam has the capacity to respond to shocks stemming from energy prices, transportation costs, and inflationary pressures driven by geopolitical factors./.