July 16, 2018 23:41

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Fitch raises sovereign rating for Vietnam

20:08 | 15/05/2018

Fitch Ratings has upgraded Vietnam sovereign rating based on rising foreign exchange reserves and strong economic growth

fitch raises sovereign rating for vietnam

Bloomberg cited Fitch's announcement on May 15 that shows the rating on the nation’s long-term, foreign currency-denominated debt was raised one level to BB, with a stable outlook. The upgrade puts Vietnam at the second-highest speculative grade and on par with Costa Rica.

The rating agency also forecast that Vietnam's foreign reservices would increase to about US$66 billion by the end of this year from US$49 billion in 2017, while general government debt is likely to decline to below 50% of gross domestic product by 2019.

According to Fitch, the country's economy can expand 6.7% this year.

Most economic forecasts since early April said Vietnam’s GDP growth will be 6.5% or higher in 2018.

On an annual credit analysis released on April 3, Moody’s Investors Service said that Vietnam’s real GDP growth will remain robust, averaging 6.7% in 2018.

Meanwhile, the World Bank (WB) on April 12 forecast Vietnam’s economic growth to stabilise around 6.5% in 2018.

The International Monetary Fund (IMF) projected Vietnam’s economy to grow by 6.6% this year and 6.5% the following year in its report namely “World Economic Outlook, April 2018”.

Vietnam’s economy enjoyed a strong economic expansion of 7.38% in the first quarter of this year, the best first-quarter performance in the last decade, according to the General Statistics Office of Vietnam.

Source: VNA