Vietnam reaches Investment Grade category for first time in R&I Ratings

Vietnam has achieved an investment-grade credit rating for the first time, according to Rating and Investment Information, Inc. (R&I), the largest Japanese-based rating agency. The upgrade, which was announced on October 8, saw Vietnam's foreign currency issuer rating raised from BB+ with a positive outlook to BBB- with a stable outlook, placing the country in the Investment Grade category.

R&I cited strong economic growth, ongoing reforms, and economic resilience as the key factors behind the upgrade. Vietnam, which has outperformed other Southeast Asian nations, has maintained steady growth momentum. The government's reforms, aimed at streamlining the state apparatus, promoting the private sector, improving institutional frameworks, and developing capital markets, are expected to further bolster Vietnam's growth potential and economic resilience.

On the fiscal side, Vietnam's public debt-to-GDP ratio remains relatively low, providing flexibility for increased spending on development investments. Economically, Vietnam continues to have a current account surplus, sustained foreign direct investment inflows, and a relatively low external debt burden, all of which contribute to its overall resilience against external shocks.

The Ministry of Finance described the milestone as a significant step in Vietnam's reform process and national credit enhancement, particularly in the face of global economic volatility and challenges. The upgrade not only reinforces Vietnam's credit standing in international markets but also enhances investor confidence, creating more favorable conditions for raising long-term resources for socio-economic development.