The Ministry of Finance held a working session with credit ratings agency Fitch in late March to present persuasive evidence regarding Vietnam’s economic resilience amid the existing global challenges.
Fitch retained Vietnam’s sovereignty rating at BB on April 4 and revised its outlook from positive to stable.
It downgraded the sovereignty ratings of 12 countries and the outlook of 7 countries to negative in March.
The ministry said the revision reflects the widespread impact of the COVID-19 pandemic on the global economy, which damaged the credit status of countries worldwide, including Vietnam, via exports, tourism, and faltering global demand.
The Vietnamese Government and its people have taken drastic action and found initial success in containing the spread of the pandemic, which was hailed by the World Health Organisation, foreign governments, and the international community, it said.
Fitch’s maintenance of Vietnam’s sovereignty rating at BB is a bright spot in the country’s credit profile, the ministry said, and is based on its medium-term development potential, stable macroeconomic environment, under-control Government debt, and easier accessibility to external finances than other countries.
It lauded Vietnam for consolidating its fiscal situation and foreign reserves over recent years, thus improving its cushion against macro risks.
Fitch also forecast that Vietnam’s economy will rebound in 2021, with growth estimated at 7.3% as domestic and foreign demand gradually recover.