Vietnam strengthens global credit standing with R&I upgrade to BBB

On October 8, R&I upgraded Vietnam's foreign-currency issuer credit rating from BB+, with a Positive Outlook, to BBB-, with a Stable Outlook. This marks the first time Vietnam has entered the investment-grade category.

Photo: Minh Vui

The upgrade reflects R&I's positive assessment of Vietnam's economic growth fundamentals, prospects for structural reforms, fiscal headroom and resilience to external shocks.

R&I expects Vietnam to sustain high growth, supported by its transition towards a productivity- and innovation-driven growth model, expanded public investment and continued foreign direct investment inflows.

During the sovereign credit rating review in April and May 2026, the Ministry of Finance coordinated with relevant ministries and agencies and engaged directly with R&I, providing updated information on Vietnam's macroeconomic and fiscal conditions, public debt and reform achievements.

This work drew on the country's macroeconomic performance in recent years and experience working with international credit rating agencies, including Moody's, Fitch Ratings and S&P.

R&I assessed that Vietnam had maintained strong growth momentum, outperforming other Southeast Asian countries.

According to R&I, the reforms being implemented by the government, focusing on streamlining the state apparatus, boosting the private sector, improving the institutional framework and developing capital markets, will help strengthen growth potential and enhance the economy's resilience.

R&I welcomed this comprehensive reform programme and expects the consistent implementation of reform measures to help Vietnam sustain high growth on a more stable basis.

On fiscal policy, R&I noted that Vietnam’s public debt as a share of GDP remained relatively low, providing fiscal headroom to increase development investment spending.

Although the budget deficit and public debt ratio are projected to rise in the coming period, R&I sees no concerns over debt sustainability, as expanded public investment is expected to support future growth while the Vietnamese government remains committed to controlling recurrent expenditure.

R&I noted that Vietnam continues to record a current account surplus, maintain foreign direct investment inflows and keep the country’s external debt burden relatively low, supporting the economy's resilience to external shocks.

At the same time, R&I highlighted several areas requiring continued attention, including credit growth, banking liquidity, real estate lending, the financial system's capacity to provide adequate funding and the level of foreign exchange reserves.

Amid continued volatility and challenges in the global economy, Vietnam's first-ever upgrade to investment grade by an international credit rating agency marks an important milestone in the country's reform process and efforts to improve its sovereign credit standing.

The result underscores Vietnam's solid macroeconomic foundations, sustained efforts to achieve high and sustainable growth, prudent public debt management and implementation of far-reaching reforms.

This, in turn, further strengthens Vietnam's credit standing in international markets, boosts investor confidence and creates more favourable conditions for mobilising long-term resources to propel socioeconomic development.

The Ministry of Finance and other government agencies will continue to work closely with R&I and other credit rating agencies, providing comprehensive and timely information on socioeconomic conditions, fiscal performance and public debt to ensure that assessments of Vietnam's sovereign credit profile are based on accurate and up-to-date information.

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