Credit rating firm Fitch has upgraded Vietnam's Long-Term Foreign andLocal Currency Issuer Default Ratings (IDRs) to 'BB-' from 'B+', saidthe Ministry of Finance on November 3.
In addition, theissue ratings on Vietnam's senior unsecured foreign and local currencybonds are also upgraded to 'BB-' from 'B+'. The Country Ceiling isupgraded to 'BB-' from 'B+' and the Short-Term Foreign Currency IDR wasaffirmed at 'B'.
The revision of the Outlook on Vietnam’s IDRswas based on an improvement in macroeconomic stability. Fitch saidVietnam’s economy has been stable and its Gross Domestic Product (GDP)has remained relatively strong at a 3-year average of 5.6 percentagainst a 'BB' range median of 3.7 percent.
Inflation hasmoderated to 3.2 percent as of October 2014, down from an average of 6.6percent in 2013. The country’s savings and investment rates were higherthan those of other nations. According to Fitch, Vietnam’smacroeconomic stabilisation has contributed to a sharp turnaround in thecurrent account from a deficit of 3.7 percent in 2010 to a projectedsurplus of 4.1 percent in 2014.
Meanwhile, foreign directinvestment (FDI) inflows, which accounted for 4.5 percent of thenation’s GDP in 2011-2013, have helped to balance payments surpluses andforeign reserve accumulation.
The firm assumed thatVietnam’s macro economy will continue to be maintained stably in thefuture and this will be a positive factor in the country’s efforts torestructure its banking system and state enterprises, and improve itscapacity for paying external debts.-VNA
In addition, theissue ratings on Vietnam's senior unsecured foreign and local currencybonds are also upgraded to 'BB-' from 'B+'. The Country Ceiling isupgraded to 'BB-' from 'B+' and the Short-Term Foreign Currency IDR wasaffirmed at 'B'.
The revision of the Outlook on Vietnam’s IDRswas based on an improvement in macroeconomic stability. Fitch saidVietnam’s economy has been stable and its Gross Domestic Product (GDP)has remained relatively strong at a 3-year average of 5.6 percentagainst a 'BB' range median of 3.7 percent.
Inflation hasmoderated to 3.2 percent as of October 2014, down from an average of 6.6percent in 2013. The country’s savings and investment rates were higherthan those of other nations. According to Fitch, Vietnam’smacroeconomic stabilisation has contributed to a sharp turnaround in thecurrent account from a deficit of 3.7 percent in 2010 to a projectedsurplus of 4.1 percent in 2014.
Meanwhile, foreign directinvestment (FDI) inflows, which accounted for 4.5 percent of thenation’s GDP in 2011-2013, have helped to balance payments surpluses andforeign reserve accumulation.
The firm assumed thatVietnam’s macro economy will continue to be maintained stably in thefuture and this will be a positive factor in the country’s efforts torestructure its banking system and state enterprises, and improve itscapacity for paying external debts.-VNA
