HCMC – Moody’s has raised Vietnam’s credit outlook from “stable” to “positive” while affirming its Ba2 rating, reflecting its assessment of the country’s institutional reforms, macroeconomic stability and medium-term growth prospects.
The decision reflects the rating agency’s confidence in Vietnam’s ability to improve its credit profile over the medium term.
This is based on clear improvements in the country’s institutional and governance quality through reforms to administrative procedures, the legal framework and the public sector since late 2024.
The reform process has produced initial results, including reducing layers of administration and strengthening coordination among government agencies. These changes have helped improve project approval processes and management procedures. Such progress has strengthened Vietnam’s institutional score in its sovereign credit profile, supporting macroeconomic stability and reducing potential risks.
Vietnam’s economic competitiveness has also continued to improve through digitalization, infrastructure investment, better human capital and capital market development.
Regarding U.S. trade protection measures, Moody’s assessed that the level of risk from these policies has eased compared with previous forecasts. Vietnam has also maintained its resilience through economic growth and foreign direct investment inflows, both of which have helped reinforce its position in global supply chains.
On the decision to affirm Vietnam’s Ba2 rating, the Ministry of Finance said it reflected Moody’s assessment that the core elements of Vietnam’s credit profile remain intact, with the country’s growth potential continuing to be a key strength.
Vietnam’s fiscal position also remains stable, supported by low and steady Government debt. This helps ensure debt repayment capacity while reducing dependence on foreign funding sources, thereby lowering foreign exchange risks and strengthening resilience to external shocks.
Earlier, Fitch Ratings assigned a BBB minus rating to Vietnam’s senior secured long-term debt instrument. A senior secured long-term debt instrument can be understood as a loan or bond with a multi-year repayment term and backed by specific collateral.
This marked the first time a debt instrument linked to Vietnam’s sovereign credit standing was rated in the “investment grade” category, meaning it is considered to carry relatively low risk by international standards.
