This marks a significant step as these instruments now carry an investment-grade rating, one notch above Vietnam’s current rating of BB+ for unsecured foreign currency long-term debt.

The upgrade follows Fitch’s review under its newly issued Sovereign Rating Criteria, introduced in September 2025.

According to Fitch, the decision reflects its expectations of higher recovery prospects for sovereign-issued bonds, combined with additional recoverable value derived from guarantees or collateral associated with secured instruments. In Vietnam’s case, this specifically applies to the 30-year Brady Bonds issued in 1998, whose principal is partially or fully backed by zero-coupon U.S. Treasury bonds.

Fitch Ratings emphasized that the upgrade does not affect Vietnam’s overall sovereign credit rating, which remains at BB+ with a stable outlook, last affirmed in June 2025. However, the move is seen as a critical affirmation of the strength and credibility of Vietnam’s debt instruments in international financial markets.

The Ministry of Finance stated it is establishing a regular and proactive dialogue mechanism with major international rating agencies including Fitch, Moody’s, and S&P. These discussions go beyond data provision, allowing Vietnam to directly explain and highlight institutional strengths, macroeconomic stability, and the country’s growth potential.

The ministry added that the upgrade to BBB- was the result of close coordination and timely communication with Fitch on the structure of the country’s Brady bond liabilities.

Looking ahead, the ministry will continue working closely with Fitch and other international organizations to ensure accurate and updated assessments of Vietnam’s credit profile.

Nguyen Le