Truong Hung Long, Director of the Department of Debt Management and Foreign Finance under the Ministry of Finance said that in order to achieve the objective of improving the national credit rating by 2030, Vietnam will promote its strengths, such as economic and fiscal power. Vietnam should focus on good governance and institutional power as well as the banking sector, state-owned enterprises and global rating indicators. Speaking at a workshop on improvement of sovereign credit rating in Ha Long on May 13, Long said that the Prime Minister recognizes the importance of improving the credit rating. As a result, the credibility ratio and rating outlook for 2013-2021 has improved in recent times. "The Government has moved to extend channels to mobilize capital for development investment and created conditions for enterprises and commercial banks to diversify financial sources. This will help attract investment both directly and indirectly in Vietnam," Long said. On March 31, 2022, the Prime Minister approved the "Project to Improve the National Credit Rating to 2030". The goal is to elevate Vietnam's credit rating to Investment Grade. Currently, the Government of Vietnam has officially partnered with three of the world's largest and most prestigious rating institutions, Moody's, S&P and Fitch. In the past, the two credit rating institutions Fitch and S&P rated Vietnam at BB and Moody's at Ba3, and all three institutions rated Vietnam as a Positive outlook. Based on that, the Government of Vietnam successfully issued 3 international bond issuances in 2005, 2010 and 2014 with much cheaper issuance costs than in the past. This is thanks largely to the improved national credit rating and prospects combined with favorable international capital market conditions.

Deputy Prime Minister Le Minh Khai approved the sovereign credit rating♏ improvement project to 2030. This is part of an effort to make Vietnam a developing and upper-middle-income country with modern industry. It should serve to elevate the country’s international reputation and reduce credit risk.

The country has targeted to raise its credit rating to Baa3 or better on Moody’s scale and BBB- or better on the Standard & Poor’s and Fitch by 2030. These are considered as “Investment Grade, he said.

Under the project, the annual GDP growth during the period will average about 7 percent. The per capita GDP will reach about 7,500 USD by 2030, while the total social investment should account for some 33 – 35 percent of the GDP.

♛ Vietnam will try to reduce State budget overspending, aiming for a 3 percent reduction. The country will also ensure that public and government debts will not exceed 60 percent and 50 percent of the GDP, respectively.

The main solutions are to build a strong public financial system, improve debt indexes, and promote fiscal consolidation. Other important factors include enhancing the transparency of fiscal policies, managing investment plans on a medium-term basis, and fostering harmony between medium-run investment and the national financial plans.

Additionally, the project highlighted the need to enhance the structure and quality of the banking system and State-owned enterprises to lower risks to the State budget. It also highlighted efforts to strengthen regulatory framework on providing loans and expanding credit growth, with a focus on production and the Government’s priority areas.

♚ Vietnam’s current credit rating on S&P and Fitch’s scale stands at BB while the country is rated at Ba3 on the Moody’s scale./.