Google

ASEANAFFAIRS
Sign up | Log in

    ASEAN PROFILES

  ASEAN KEY DESTINATIONS

Home  >>   Daily News  >>Vietnam>>Economy>>Moody’s and SP affirms Viet Nam’s sovereign rating
NEWS UPDATES Asean Affairs     May 2, 2017  






Moody’s and SP affirms Viet Nam’s sovereign rating

Two major credit rating agencies, Moody’s and Standard & Poor’s (S&P), on Friday affirmed Viet Nam’s sovereign rating, citing the country’s strong foreign direct investment (FDI) inflows, macroeconomic and external stability and modest external debt burden.

Moody’s affirmed the Government of Viet Nam’s B1 issuer and senior unsecured debt ratings, while it raised the outlook to positive from stable.

Moody’s B1 rating, four steps below investment grade, is considered relatively stable, with a moderate chance of default.

The company also raised its assessment of Viet Nam’s local-currency bond to Baa3 from Ba1, while the foreign currency bond remained at Ba2.

The positive outlook for Viet Nam is based on three key drivers, including strong FDI inflows, boosted by ongoing economic reform and liberalisation; macroeconomic and external stability; and the stabilization of prospective debt and an improved funding profile.

Moody’s noted that robust FDI inflows will continue to sustain Viet Nam’s dynamic economic performance relative to similar-rated peers, as it allows Việt Nam to diversify its economy and gain market share in international trade.

Viet Nam has seen significant improvements in the investment climate. Its ranking rose to 60th out of 138 countries in the 2016-2017 World Economic Forum Global Competitiveness Index, up from 70th in 2013-14, while its showings in the World Bank’s Doing Business Indicators similarly rose to 82nd out of 190 countries in 2017, and from 99th in 2014.

Further, Viet Nam has become a more important node in the regional supply chain for electronics, especially for mobile phones, as foreign investments have helped to diversify the economy towards higher value-added manufacturing. Its market share nearly doubled to 1.2 per cent of world exports in 2016, from 0.7 per cent in 2013.

Moody’s expected the country’s economic growth to remain robust at around 6.3 per cent per annum through 2019.

S&P Global Ratings on Friday also affirmed Viet Nam’s long-term ‘BB-’ credit ratings and short-term ‘B’ credit ratings with a stable outlook.

The ratings have reflected the country’s lower middle-income, banking sector weakness, and emerging institutional settings that hamper the responsiveness of policy.

“These weaknesses are offset by Viet Nam’s external settings that feature balanced external accounts, strong foreign direct investment inflows and a modest external debt burden,” S&P said in a press release.

The rating company said financial and technical assistance that Việt Nam has received from donors also contributed to the rating.

Its stable outlook reflected the company’s expectation that Việt Nam’s growth prospects will continue to improve, leading to gains in its key economic and fiscal measures, it said.

However, it has cautioned that the large fiscal deficit and rising debt burden, with net general government debt at 46.6 per cent of GDP in 2016, signal a further delay in fiscal consolidation. S&P estimates that the fiscal deficits will average 4.9 per cent of GDP over 2017-20, down from an average 6.4 per cent over 2012-16.– VNS


Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates
Contact: marketing@aseanaffairs.com

Comment on this Article. Send them to  your.views@aseanaffairs.com

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
 
or
submit your comment in the box below



 
Today's  Stories                          May 2, 2017 Subsribe Now !
• Moody’s and SP affirms Viet Nam’s sovereign rating Subcribe: Asean Affairs Global Magazine
• ASEAN gives Beijing a pass on South China Sea dispute, cites 'improving cooperation'
• PLN to issue $3 billion in bonds in May
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Cusi courts ASEAN investors for power infra
• Red Planet Indonesia to start new hotel construction in Q4
Asean Analysis                  April 22 2017
• Asean Analysis  April 22, 2017
ASEAN Foreign Ministers' Washington Visit Provides Opportunity to Address Key Policy Concerns
Advertise Your Brand

Asean Stock Watch   April 28, 2017

• Asean Stock Watch-April 28, 2017
The Biweekly Update
• The Biweekly Update  April 22, 2017

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan

ASEAN  ANALYSIS

This year in Thailand-what next?


AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

 


Name

Name


Email

Email



1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2019 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand
asean@aseanaffairs.com