The Finance Ministry said on September 6 that Moody’s Investors Service has upgraded Vietnam’s long-term issuer and senior unsecured ratings to Ba2 from Ba3 and changed the outlook to stable from positive.
The ministry said the upgrade to Ba2 reflects the assessment by Moody’s that Vietnam’s economy has growing strengths and greater resilience to external macroeconomic shocks that are indicative of improved policy effectiveness.
Moody’s expects the situation would continue as the economy benefits from supply chain reconfiguration, export diversification and continued inbound investment in manufacturing.
The rating also reflects a sounder fiscal footing backed by contained borrowing costs, a conservative approach to fiscal policy and improved government liquidity, driven by the ongoing transition from external concessional borrowing toward longer-dated, low-cost domestic market financing, said the ministry.
Amid complicated developments in the world in the past eight months, Vietnam is the only in Asia-Pacific and one of the four countries globally to have ratings upgraded by Moody’s since early this year.
Despite the changes in the world situation, Vietnam has made positive recovery in business and production activities, stabilised macro-economy, controlled inflation, and ensured major economic balances, according to a report by the Ministry of Planning and Investment (MPI) delivered at the Government regular meeting on September 6.
In August, consumer price index (CPI) rose 3.65 year on year, pushing the average CPI in the first eight months to 2.58%, equivalent to the level recorded in the 2018-2021 period, said the report.
Budget collection in the first eight months of this year fulfilled about 84.8% of the yearly estimate, up 19.4% year on year, while import-export turnover rose about 17.3% over the same period last year in August and 15.5% in the first eight months of this year, with trade surplus reaching 3.96 billion USD in the eight months.
At the same time, the index of industrial production (IIP) increased 15.6% year on year in August and 9.4% in eight months, according to the report. Total revenue from retail of goods and services in August was also up 50.2% year on year.
Particularly, important infrastructure such as Van Don-Mong Cai and Ha Long-Mong Cai Expressways and Thu Thiem 2 Bridge were put into operation.
The report also highlights positive results in many areas such as defence, security and external relations.
It said that as of August 28, 505 trillion VND (21.44 billion USD) of public investment capital was disbursed, reaching 93.2% of the target.Meanwhile, the Ministry of Finance reported that over 212 trillion VND of capital from the State budget had been disbursed as of August 31, equivalent to 39.15% of the plan set by the PM.
As of September 2, 55.5 trillion VND of support to the socio-economic recovery and development programme was disbursed, including more than 10 trillion VND of soft loans through the Vietnam Bank for Social Policies.
The implementation of national target programmes has also been on a right track, the ministry said.
Governor of the State Bank of Vietnam Nguyen Thi Hong said that in August and the first eight months, the inflation rate was kept at a low level, while economic growth was relatively high, showing the efficiency of macro-economic policies.
Minister of Planning and Investment Nguyen Chi Dung said that many reputable organisations and experts are optimism about Vietnamese economic outlook, noting that the World Bank predicted 7.5% of Vietnam’s GDP growth for 2022 and 6.7% for 2023, while the Asian Development Bank and the International Monetary Fund also forecast that the figure may reach 6.5% and 6%, respectively, for this year./. VNA