(VOVWORLD) -Fitch Ratings on Friday upgraded Vietnam's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'BB+', from 'BB', the Outlook is Stable.
 Photo: VNA |
The upgrade reflects Vietnam's favorable medium-term growth outlook, underpinned by robust foreign direct investment (FDI) inflows, which we expect will continue to drive sustained improvements in its structural credit metrics, according to Fitch Ratings-Hong Kong.
It forecasts medium-term growth of around 7%. Vietnam's cost competitiveness, educated workforce relative to peers, and entry into regional and global free-trade agreements bode well for continued strong FDI inflows amid global supply chain diversification.
Fitch Ratings quotes authorities estimating that FDI projects have disbursed about 22.4 billion USD (6% of GDP) as of 20 December 2022, an increase of 13.5% over the same period last year. Diplomatic relations with the US were upgraded to a comprehensive strategic partnership in September, which could facilitate greater US FDI and trade.