Re: Moody’s revises Viet Nam’s outlook to Positive, affirms Ba3 rating

Re: Moody’s revises Viet Nam’s outlook to Positive, affirms Ba3 rating 18/03/2021 05:19:00 105

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On March 18th 2021, Moody’s Investors Service (Moody’s) revised Viet Nam’s Credit Rating outlook to Positive and affirmed its Ba3 rating.

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MINISTRY OF FINANCE OF VIET NAM

 

PRESS RELEASE

Hanoi, March 18th 2021

Re: Moody’s revises Viet Nam’s outlook to Positive, affirms Ba3 rating

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On March 18th 2021, Moody’s Investors Service (Moody’s) revised Viet Nam’s Credit Rating outlook to Positive and affirmed its Ba3 rating.

Moody's decision to lift the sovereign credit rating outlook by two levels to positive is driven by its recognition of Viet Nam’s impressive economic outperformance amongst peers against the unprecedented global challenge of the coronavirus pandemic. Moody's recognises Viet Nam’s effective management of the pandemic, which has supported a rapid resumption of domestic economic activity, cross-border trade and tax revenue. Economic growth outlook in the medium term is viewed by Moody’s to be promising, underpinned by ongoing robust improvements in fiscal strength and debt metrics. In Moody’s view, Viet Nam’s economic strength has benefitted from global shifts in production, trade and consumption following COVID-19, increasingly competitive manufacturing sector and dynamic external balances. In Moody’s press release, environmental, social, governance considerations are taken into account, highlighting impact on Viet Nam’s credit from issues pertaining to climate change-related weather events balancing against favourable demographics relative to peers.

This is the first direct outlook change from negative to positive by Moody’s globally since the pandemic, a unique outcome in the current environment. Moody’s acknowledges Viet Nam’s sustained efforts in building fiscal and economic strengths, improved policy effectiveness, as well as the country benefiting from global supply chain restructuring, positioning the sovereign credit rating on an upward trajectory.

The Government of Viet Nam shall continue to pursue policies that ensure macro-economic stability, improve economic competitiveness, accelerate institutional reforms whilst also swiftly implementing Covid-19 control and prevention measures, to successfully achieve all the tasks set out for the years ahead. This will continue to underpin Viet Nam’s credit strengths, creating a solid foundation to realise the country’s medium to long term objectives.

Moody’s change of Viet Nam’s credit outlook directly by two levels to positive reflects the proactive and continuous communications by the Ministry of Finance and relevant agencies and updates on developments in Viet Nam with Moody’s. Ministry of Finance will continue to provide information and updates to allow Moody’s and other rating agencies to form an accurate assessment of Viet Nam’s strong and improving credit profile./.