Fitch raises sovereign rating for Vietnam
Updated : Tuesday, May 15, 2018 3:16 PM (GMT+0700)

FitchRatings has upgraded Vietnam's sovereign rating based on risingforeign-exchange reserves and strong economic growth.

Illustrative image - Source: VNA

Bloombergcited Fitch's announcement on May 15 that shows the rating on the nation’slong-term, foreign currency-denominated debt was raised one level to BB, with astable outlook. The upgrade puts Vietnam at the second-highest speculativegrade and on par with Costa Rica.

The rating agency alsoforecast that Vietnam's foreign reservices would increase to about 66 billionUSD by the end of this year from 49 billion USD in 2017, while generalgovernment debt is likely to decline to below 50 percent of gross domesticproduct by 2019.

According to Fitch, thecountry's economy can expand 6.7 percent this year. 

Most economic forecastssince early April said Vietnam’s GDP growth will be 6.5 percent or higher in2018. 

On an annual credit analysisreleased on April 3, Moody’s Investors Service said that Vietnam’s real GDPgrowth will remain robust, averaging 6.7 percent in 2018. 

Meanwhile, the World Bank(WB) on April 12 forecast Vietnam’s economic growth to stabilise around 6.5percent in 2018. 

The International MonetaryFund (IMF) projected Vietnam’s economy to grow by 6.6 percent this year and 6.5percent the following year in its report namely “World Economic Outlook, April2018”. 

Vietnam’s economy enjoyed astrong economic expansion of 7.38 percent in the first quarter of this year,the best first-quarter performance in the last decade, according to the GeneralStatistics Office of Vietnam.


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