Business confidence grows as Moody’s changes Vietnam’s outlook to positive

(VOVWORLD) - Moody's Investors Service (Moody's) has maintained the Government of Vietnam's long-term issuer and senior unsecured ratings at Ba3 and changed the outlook from negative to positive.

According to the credit ratings company, Vietnam’s effective policies in development and pandemic containment have helped its economy and foreign trade recover quickly. Vietnam’s economic growth outlook in the medium term is considered promising thanks to convincing and solid achievements in fiscal and debt position improvement.

According to Moody’s, Vietnam's economic strength, with competitiveness in processing, manufacturing, and foreign trade, may benefit from global shifts in production, trade, and consumption following the coronavirus pandemic.

Moody's said that Vietnam’s institutional strength has been remarkably enhanced in the Government's budget and debt management.

The two-level-up elevation by Moody's for Vietnam is unprecedented in its global credit rating since the COVID-19 pandemic, and is a very good result for Vietnam.

Do Thai Hung, Director General of Finpros Investment JSC, said Moody’s move will benefit the Vietnamese economy.

"Despite global economic turbulences, the cash flow in the Vietnamese economy has worked well. Moreover, local banks have been largely immune to COVID-19,” said Mr. Hung.

Finance expert Nguyen Tri Hieu said, “Given Vietnam’s faster recovery, it’s no surprise that Moody's has raised Vietnam’s outlook. But we must work harder to attract more investment. Vietnam’s economic growth has been a spotlight during the pandemic but more needs to be done to improve the quality of life,”