Standard & Poor’s has given Vietnam a crediting rating of BB-/B and a stable outlook, unchanged from the ratings announced in March 2015.

According to the ministry, the stable outlook reflects Vietnam’s economic growth, while macro-economic factors have been positively recognised with improved outlook by the agency and investors.

The factors that contributed to the positive S&P ratings include a relatively diverse and flexible economy, per capita income reaching an estimated US$2,200 in 2016, and macroeconomic stability at a relatively high level to make a positive impact on exports and foreign direct investment.

In the past two years, appropriate socio-economic development policies have contributed to macroeconomic stability and effective inflation control at a low level.

Stable export growth, FDI, and remittances that tended to increase, along with the comparative advantage of labour costs compared to other countries in the region, continue to be significant factors that help to improve the balance of payments and the economy’s competitiveness.

S&P also noted that, in the coming time, Vietnam should pay attention to controlling its budget deficit, and the increase rate of public debt and bad debt in the banking sector.

The issues have been also recognised by the Government and National Assembly with detailed plans to tackle them from now to 2020, aimed at controlling and bringing the budget deficit to below 4% of GDP and controlling the public debt growth rate within the upper limit of 65% of GDP.

Nhan Dan