29-12-2023 (HANOI) Fitch Ratings, the renowned credit rating agency, has recently provided an optimistic forecast for Vietnam’s economic growth in the medium term, estimating it to hover around 7 percent. This positive outlook comes amid several encouraging indicators, signaling a robust trajectory for the nation.
The agency has raised Vietnam’s long-term Issuer Default Rating (IDR) to “BB+,” a move reflective of its confidence in the country’s favourable growth prospects over the medium term. Fitch highlights the pivotal role played by robust foreign direct investment (FDI) inflows, predicting that these will continue to propel sustained enhancements in Vietnam’s structural credit metrics, as reported by Vietnam News Agency on Thursday.
The agency’s report expresses a growing assurance that immediate economic challenges, including strains in the property sector, subdued external demand, and delays in policy implementation due to an ongoing corruption crackdown, are unlikely to impede the nation’s medium-term macroeconomic outlook. Fitch contends that Vietnam possesses adequate policy buffers to navigate short-term risks effectively.
In a November release, Fitch outlined its projections for Vietnam’s gross domestic product (GDP) growth, anticipating an acceleration to 6.3 percent in 2024 and a further surge to 7.0 percent in 2025. This optimistic forecast underscores the agency’s conviction in Vietnam’s resilience and its ability to overcome current hurdles, positioning the country for sustained economic advancement in the coming years.
As Vietnam’s economic landscape continues to evolve, the upgraded credit rating signals a positive trajectory, offering stakeholders and investors a glimpse into the nation’s promising economic future.
