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S&P upgrades Vietnam’s sovereign credit rating

By Le Hoang

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HCMC – S&P Global Ratings has upgraded Vietnam’s long-term sovereign credit rating to BB+ from the BB level with a stable outlook.

The credit rating agency kept the country’s short-term credit rating unchanged at B, raising Vietnam’s rating for transformation capacity by one notch to BB+.

Vietnam is one of the only two Asia-Pacific nations to have its ratings upgraded since the start of this year.

S&P Global Ratings anticipated that over the next 12-24 months, Vietnam’s economy would continue to recover from the difficulties and challenges induced by the pandemic, contributing to solidifying the external position and controlling the fiscal deficit.

S&P forecasts the country’s gross domestic product (GDP) growth will reach some 6.9% in 2022 and will maintain a long-term growth trend at 6.5%-7% from 2023 onward.

According to S&P’s analysis, Vietnam’s GDP per capita has risen quickly in the past few years, with the 10-year average growth at 4.8%, higher than the average growth of other nations with similar levels of income per capita. Vietnam’s income per capita is forecast to hit US$3,868 in 2022.

In addition, S&P analyzed that the country’s financial sector remains stable regardless of the impact of the pandemic.

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