Illustrative image (Photo: VNA)The Ministry of Finance (MoF) said the creditrating agency’s upgrade of Vietnam’s outlook reflects the growthresilience of the country, which was among the few economies in the AsiaPacific region and the “BB” rating category to maintain positive growth in2020, at 2.91 percent.
Fitch Ratings recognised Vietnam’s fiscal andgovernment debt achievements, its successes in bringing the coronavirusoutbreak swiftly under control, strong policy support and export demand, alongwith continued strengthening of external finances due to persistent currentaccount surpluses and rising international reserves.
It forecast GDP growth of about 7 percent in2021 and 2022, in line with a broader global economic recovery sustainingexport growth and a gradual normalisation of domestic economic activity basedon its expectation of continued success by the authorities in containingdomestic coronavirus infections.
The agency noted Vietnam’s efforts to maintainmacro-economic economic stability, sustain high growth, reduce the GDP per capitagap vis-à-vis the country's peers, and further improve public finances, forexample, through sustainable fiscal consolidation and debt stabilisation overthe medium term are among factors that could, individually or collectively,lead to positive rating action.
Apart from Moody's Investors Service recentlyraising the outlook for Vietnam to “positive” from “negative” – anunprecedented move in its ranking globally since the start of the COVID-19pandemic, Fitch Ratings’ upgrade of Vietnam’s outlook demonstrates creditrating organisations’ belief in the Government’s effective policies, stronggrowth prospects, and increasingly solid fiscal space, according to the MoF.
The MoF attributed the improvement in thecountry’s credit outlook to the actively implemented macro-economicstabilisation measures, the enhanced financial – banking system, along withministries and sectors’ efforts to share updated information with FitchRatings./.
VNA
