The credit rating agency said improvements in Vietnam’s institutional and governance quality are being driven by administrative, legal and public sector reforms initiated since late 2024. The reform process is gradually delivering initial results, with institutional restructuring reducing administrative layers, consolidating ministries and strengthening coordination among government agencies, helping improve project approval processes and administrative procedures.

These changes are supporting stronger institutional scores in Vietnam’s credit profile, contributing to macroeconomic stability and lowering potential risks. At the same time, the economy’s competitiveness is improving through digitalisation, infrastructure investment, human capital development and capital market expansion.

Moody’s said risks from US trade protection measures have eased compared with earlier expectations, while Vietnam has shown resilience through robust economic growth and sustained foreign direct investment inflows, reinforcing its role in global supply chains.

The affirmation of the Ba2 rating reflects Moody’s view that Vietnam’s core credit strengths remain intact. Growth prospects continue to be supported by a diversified export base, recovering domestic demand and stable FDI inflows.

Vietnam’s fiscal strength remains a key credit support, with government debt at low and stable levels and solid debt-servicing capacity. Reduced reliance on external borrowing helps limit foreign exchange risks and strengthens resilience to external shocks.

Moody’s said Vietnam has the capacity to withstand shocks from energy prices, transport costs and inflation pressures linked to geopolitical developments, supported by a strong growth foundation, solid external buffers, low foreign currency risk exposure and diversified energy and export structures.

However, the agency noted that risks in the banking system, the real estate market and remaining institutional constraints, despite improvements, could limit upward pressure on the rating.

The outlook upgrade demonstrates international recognition of Vietnam’s efforts to maintain macroeconomic stability and promote institutional reforms.

The Ministry of Finance and relevant government agencies will continue to coordinate with Moody’s and other rating agencies to provide updated and comprehensive information for future assessments of Vietnam’s credit profile.

Moody’s upgrades ratings of 12 Vietnamese banks

Moody's Investors Service has raised ratings of 12 Vietnamese banks following its upgrade of Vietnam's sovereign rating to Ba2 from Ba3.

Finance Ministry discusses national credit rating upgrade with Moody’s Ratings

Minister of Finance Nguyen Van Thang has held a meeting with Michael West, President of Moody’s Ratings, to discuss measures for improving Vietnam’s national credit rating, the Ministry of Finance (MoF) reported.