Fitch Ratings forecasts that the country’s GDP growth to accelerate to 6.1 percent in 2022 and 6.3 percent in 2023 from 2.6 percent in 2021. (Photo: VNA)

Hanoi (VNA) – Fitch Ratings has affirmed Vietnam’slong-term foreign-currency issuer default rating (IDR) at “BB” with a positiveoutlook.

A report released on March 28 by the rating agencysaid the affirmation reflects Vietnam’s continued strong medium-term growthprospects, despite the COVID-19 pandemic and the global economic spilloversfrom the war in Ukraine, and strong external finance metrics relative to peers.

Fitch Ratings noted therapid recovery of economic activities thanks to the Government's flexibleapproach in response to the pandemic and high vaccination rates.

Vietnam continues to benefitfrom the export sector thanks to the implementation of important tradeagreements, foreign direct investment (FDI) inflows still maintain high growthand tourism flows gradually resume from 2022, it said.

Fitch forecasts that the country’s GDP growth toaccelerate to 6.1 percent in 2022 and 6.3 percent in 2023 from 2.6 percent in2021, led by a recovery in domestic demand, strong exports and high FDI inflows.

Fitch Ratings has affirmed Vietnam’s long-term foreign-currency issuer default rating (IDR) at “BB” with a positive outlook.(Photo: tapchitaichinh.vn)

According to Fitch Ratings, Vietnam's success in stabilising public debt, itsgrowth potential in the medium term and the rise of foreign exchange reserves whichare reaching a record high are offering a cushion for the country to cope with externalshocks.

It forecasts that efforts to maintain macroeconomic stability, strive for a high economicgrowth rate, reduce the disparity in GDP per capita compared to its peers andfurther improve public finances through sustained fiscal consolidation,expansion of the collection base, and medium-term debt stabilisation,overcoming weaknesses in the banking sector in terms of capitalisation,transparency regarding asset quality and regulatory frameworks, will bepositive factors to help further enhance the country's credit rating in thecoming time.

The Ministry of Finance (MoF) attributed the rating of thecountry at BB and positive outlook to the active implementation of macroeconomicstabilisation measures, reforming the financial-banking system as well as thepandemic control to stabilise life and resume production and businessactivities of the Party, National Assembly and Government of Vietnam.

The ministry will continue to work w♊ith Fitch Ratings, ratingagencies and other international organisations to have full information and an authentic foundation to give an accurate and positive view of the country’s credit profile, it said./.