Credit rating firm Fitch has revised Vietnam’s credit outlook toPositive from Stable due to economic movements in the past time.
Fitch’s report on January 23 gave Vietnam ’s Long-TermForeign- and Local-Currency Issuer Default Rating ( IDR ) a “B+”. TheOutlooks on the Long-Term IDR s were revised from Stable to Positive.
The Country Ceiling was put at “B+” and the Short-Term Foreign Currency IDR at “B”.
The revision of the Outlook on Vietnam ’s IDRs was based on animprovement in macroeconomic stability. The firm said the country’seconomy has begun to recover following a difficult period afterausterity measures were implemented in early 2011 under Resolution 11 tocool an overheated economy.
Vietnam ’s GrossDomestic Product ( GDP ) grew 5.4 percent in 2013 and Fitch forecaststhe rate would be 5.7 percent and 5.9 percent in 2014 and 2015respectively.
Also according to Fitch, Vietnam had alarge current account surplus of 5 percent of GDP in 2013 while strongforeign direct investment (FDI) inflows, at 6.8 percent of GDP in2013, continue to assist the expansion in the manufacturing/exportsector.
However, the banking sector remains a sourceof weakness, Fitch’s report said, adding that it believed theauthorities have begun to address the bad debt issue by creating anational asset management company.
The firm assumesthat Vietnam will continue with policies aimed at achievingmacroeconomic stability, sustainable GDP growth, low and stableinflation, and healthier current account balances.-VNA
Fitch’s report on January 23 gave Vietnam ’s Long-TermForeign- and Local-Currency Issuer Default Rating ( IDR ) a “B+”. TheOutlooks on the Long-Term IDR s were revised from Stable to Positive.
The Country Ceiling was put at “B+” and the Short-Term Foreign Currency IDR at “B”.
The revision of the Outlook on Vietnam ’s IDRs was based on animprovement in macroeconomic stability. The firm said the country’seconomy has begun to recover following a difficult period afterausterity measures were implemented in early 2011 under Resolution 11 tocool an overheated economy.
Vietnam ’s GrossDomestic Product ( GDP ) grew 5.4 percent in 2013 and Fitch forecaststhe rate would be 5.7 percent and 5.9 percent in 2014 and 2015respectively.
Also according to Fitch, Vietnam had alarge current account surplus of 5 percent of GDP in 2013 while strongforeign direct investment (FDI) inflows, at 6.8 percent of GDP in2013, continue to assist the expansion in the manufacturing/exportsector.
However, the banking sector remains a sourceof weakness, Fitch’s report said, adding that it believed theauthorities have begun to address the bad debt issue by creating anational asset management company.
The firm assumesthat Vietnam will continue with policies aimed at achievingmacroeconomic stability, sustainable GDP growth, low and stableinflation, and healthier current account balances.-VNA
