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A report released on Monday by the rating agency said the affirmation reflects Vietnam’s strong medium-term growth prospects, despite the COVID-19 pandemic, global economic spillovers from the Ukrainian crisis, and strong external finance metrics relative to peers.

Fitch Ratings noted the rapid recovery of the economy thanks to the Government's flexible approach in response to the pandemic and high vaccination rates.

Vietnam continues to benefit from its export sector thanks to the implementation of important trade agreements, foreign direct investment (FDI) inflows still maintaining high growth, and tourism flows gradually resuming from 2022, it said.

Fitch forecasts that the country’s GDP growth will accelerate to 6.1% in 2022 and 6.3% in 2023, led by a recovery in domestic demand, strong exports and high FDI inflows.

According to Fitch Ratings, Vietnam's success stabilising public debt, its growth potential in the medium term, and the rise of foreign exchange reserves which are reaching a record high are offering a cushion for the country to cope with external shocks.