What is the credit rating of Vietnam?

Vietnam’s Credit Rating Affirmed by S&P Global Ratings

In June 2024, S&P Global Ratings affirmed Vietnam’s long-term sovereign credit rating at BB+, with a stable outlook. This affirmation reflects the rating agency’s continued positive assessment of Vietnam’s economic stability and fiscal strength.

Economic Stability

Vietnam has experienced robust economic growth in recent years, with GDP growth averaging over 6% per annum. The country has benefited from a stable macroeconomic environment, with low inflation and a sound banking sector.

Fiscal Strength

The government has maintained a prudent fiscal policy, leading to a low level of public debt. The budget deficit has been consistently below 5% of GDP, and the external debt burden is manageable.

Outlook

S&P Global Ratings believes that Vietnam’s economy will continue to grow at a healthy pace in the coming years. The agency expects inflation to remain under control, and the banking sector to remain resilient.

Factors to Watch

However, the rating agency also identified some factors that could affect Vietnam’s credit rating in the future. These include:

• The global economic outlook
• The country’s ability to contain inflation
• The pace of fiscal consolidation

Overall, S&P Global Ratings’ affirmation of Vietnam’s sovereign credit rating is a positive sign for the country’s economic outlook. The government’s prudent macroeconomic and fiscal policies have contributed to Vietnam’s strong creditworthiness.