Investing.com -- Moody’s upgraded its outlook on Vietnam to positive from stable on Monday, citing increased confidence in the country’s ability to strengthen its credit profile over the medium term.
The ratings agency affirmed Vietnam’s Ba2 rating while noting that the country’s institutional quality and governance have shown improvement due to reforms implemented since late 2024. Moody’s also said downside risks from U.S. trade measures have diminished compared with earlier expectations.
In April, FTSE Russell announced it would upgrade Vietnam to emerging market status from frontier status in September, placing the country alongside markets such as India and China. The upgrade follows market-friendly reforms by the Southeast Asian nation.
A senior official at S&P Ratings said in April that Vietnam would remain Asia’s fastest-growing nation after India through 2028, though the official cautioned that heavy public spending may result in larger fiscal deficits.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.