Moody’s raises Vietnam’s outlook to ‘positive’ from ‘stable’

Affirming its ’Ba2’ rating, the agency said Vietnam’s institutional quality and governance were improving due to administrative, legal, and public sector reforms implemented since late-2024, and downside risks from US trade measures had eased compared with what was expected earlier.

Moody’s Ratings recently raised its outlook on Vietnam to ‘positive’ from ‘stable’, citing rising confidence in the country’s ability to strengthen its credit profile over the medium term.
Affirming its ⁠’Ba2′ rating, it said Vietnam’s institutional quality and governance were improving due to reforms implemented since late-2024, and downside risks from US trade measures had relatively eased.

Moody’s emphasised that the country’s growth potential continues to be a primary anchor for its credit profile. This is supported by a diversified export base, recovering domestic demand and robust foreign direct investment (FDI) inflows, all of which provide a solid foundation for macroeconomic stability.

Vietnam has demonstrated a high degree of adaptability to global volatility like fluctuating energy prices, rising shipping costs and inflationary pressures stemming from geopolitical tensions. This resilience is underpinned by a stable economic foundation, a positive external balance and a highly diversified trade structure, it noted.

However, risks within the banking system, vulnerabilities in the real estate market and lingering institutional bottlenecks continue to serve as hurdles for a potential rating upgrade in the future, the rating agency cautioned.

Fibre2Fashion News Desk (DS)