Predictability and transparency in the policy framework will be the key for Vietnam to overcome the crisis and the positive outlook will put the country in a much better position to aim for an investment rating in the near future, Olivier Rousselet, Country Director of BNP Paribas Vietnam, has said.
An automobile production line at a Toyota Motor Vietnam factory in the northern province of Vinh Phuc
Speaking in an interview with the Vietnam News Agency (VNA), he said Vietnam's credit rating is always in an uptrend from 2013 to 2021. Specifically, it increased from B2 to Ba3, according to Moody's, from BB- to BB and from B + to BB in line with S&P and Fitch's assessments.
According to Rousselet, the ranking upgrades in the past eight years have shown that credit rating agencies have a positive assessment of Vietnam's macroeconomic policies. The agencies agreed that Vietnam has sustainable economic growth, a high Gross Domestic Product (GDP) growth rate and the ability to attract foreign direct investment (FDI).
They also highly appreciated the improvement of the government's debt index and debt solvency as well as the stable public finance of Vietnam. This positive outlook is a testament to the Government's ability to respond to the impact of the COVID-19 pandemic and the Government's policies has been on the right track.
He suggested Vietnam strengthen the effectiveness of fiscal and monetary policies and stabilise debts as it will improve public finance and help achieve the low inflation target.
It is necessary for the country to continue minimising the implicit risks of credit events and maintain timely payment obligations, Rousselet said, adding that it will boost the confidence of foreign investors.
Vietnam is the only country in the Association of Southeast Asian Nations (ASEAN) in the ‘BB’ rating category to gain positive rating momentum in 2021 and this is a reflection of the country's economic strength and resilience.
Rousselet affirmed that nurturing long-term growth opportunities, improving trade momentum and increasing the attraction of foreign investment will play an important role in building a stronger economy and will lead Vietnam to a better position, achieving an investment rating in the medium term./.
VNA
