What is the rating of S&P Vietnam in 2024?

S&P Affirms Vietnam’s Credit Rating with Stable Outlook

In a recent assessment, S&P Global Ratings affirmed Vietnam’s long-term sovereign credit rating at BB+, while maintaining a stable outlook. The rating agency also assigned a B short-term rating. This affirmation acknowledges Vietnam’s continued economic resilience and prudent fiscal management.

Robust Economic Performance

Vietnam’s economy has demonstrated remarkable resilience in recent years, buoyed by strong exports and domestic demand. The country has maintained consistent GDP growth, averaging around 6% annually since 2015. This growth has been driven by a favorable business environment, abundant labor supply, and increased foreign investment.

Sound Fiscal Framework

The government has implemented prudent fiscal policies to ensure sustainable public finances. The budget deficit has been kept within manageable levels, and public debt remains relatively low at around 40% of GDP. The government’s commitment to fiscal discipline has contributed to macroeconomic stability and investor confidence.

External Position

Vietnam’s external position remains strong, supported by a robust current account surplus. The country runs a trade surplus, and its foreign reserves have grown significantly in recent years. This has reduced its vulnerability to external shocks and has helped maintain a stable exchange rate.

Credit Outlook

S&P’s stable outlook reflects its expectation that Vietnam will continue to maintain macroeconomic stability and pursue structural reforms to support sustainable economic growth. The government’s focus on infrastructure development, human capital enhancement, and trade liberalization are expected to contribute to the country’s long-term prospects.

Key Considerations

While Vietnam’s credit rating remains stable, S&P identifies certain key vulnerabilities that could lead to potential downgrades. These include:

• Prolonged global economic downturn
• Deterioration in external financing conditions
• Slowdown in structural reforms
• Significant increase in public debt

Conclusion

S&P’s affirmation of Vietnam’s BB+ long-term sovereign credit rating with a stable outlook reflects the country’s strong economic fundamentals, sound fiscal management, and favorable external position. The stable outlook suggests that S&P expects Vietnam to continue on a path of sustainable growth while addressing potential risks.