Illustration photo.

According to the Ministry of Finance, Moody's upgrade of Viet Nam's national credit rating to Ba2 thanks to Viet Nam's increasingly stronger economy and resilience to external macro shocks.

Moody assesses that Viet Nam’s economic strength will continue to benefit from global supply chain reconfiguration, export diversification and continued inflows of foreign investment into the manufacturing and processing sector.

The upgrade also reflects a sustained fiscal footing backed by reasonably controlled borrowing costs, prudent fiscal policy management, and improved liquidity of the Government debt portfolio. This also indicates the Government's tendency to gradually switch from foreign concessional loans to mobilizing loans in the domestic market with low cost and longer terms.

Moody’s attributed Viet Nam's economic strength to enhanced competitiveness and deeper participation in global value chains.

The increased competitiveness in the country’s manufacturing and processing sector demonstrates superior efficiency compared to other countries of the same rank in the region has contributed to the improvement of Vietnamese people’s income.

In addition, thanks to bilateral and regional trade agreements, Viet Nam has affirmed its expanding position in the global value chain.

Moody assesses that these free trade agreements will help improve Viet Nam's competitiveness in the commodity portfolio with lower added value, while firmly consolidating Viet Nam's position in the supply chain of technology products with high added value.

Viet Nam is the only country in the Asia-Pacific region that has been upgraded by Moody's since the beginning of the year./.