On May 13, 2022, in Ha Long city, Quang Ninh, the Ministry of Finance coordinated with the Asian Development Bank and other banks to advise and support Vietnam on the national credit rating of the organization. Organized a conference to disseminate “Project on Improving National Credit Rating to 2030”.
Attending the conference were representatives of international organizations such as ADB, IMF, WB, Standard Chartered Bank – credit rating consulting organization for Vietnam, ministries, branches, Government agencies, and National Assembly agencies. , businesses and commercial banks.
Dissemination conference “Project on improving national credit rating to 2030” on May 13, 2022.
On March 31, 2022, the Prime Minister of Vietnam issued a decision approving the National Credit Rating Improvement Project to 2030. The project is chaired by the Ministry of Finance and coordinated with other ministries and sectors. , a construction related agency, has evaluated the results achieved in the national credit rating for the period 2013-2020 and proposed a goal to strive towards 2030 to raise Vietnam’s credit rating to the top rank. private.
In order to achieve the objectives of the Scheme, Vietnam will continue to promote its strengths in credit profile such as Economic and Fiscal Strength, and at the same time need to continue to improve the indicators of Governance Strength and Financial Strength. institutions, banking sector, state-owned enterprises, global ranking criteria.
Currently, according to three credit rating agencies, Moody’s, S&P and Fitch Vietnam are at BB (according to Fitch and S&P), Ba3 according to Moody’s; All three organizations rate Vietnam at a Positive outlook. The Government of Vietnam has successfully issued 3 international bond issuances in 2005, 2010 and 2014, with much cheaper issuance costs over the years thanks to the national credit rating and outlook. improved in conjunction with favorable international capital market conditions.
Continuing to improve the national credit rating in the coming time according to the objectives set out by the Scheme plays an important role in improving Vietnam’s credit profile, creating spillover effects for the entire economy. .
In addition, the upgrade also contributes to improving the country’s reputation, increasing the confidence of international investors, including direct and indirect investors in Vietnam.
The consolidation of the elements that constitute a country’s credit rating is the main driving force for improving the country’s credit rating; on the contrary, the regular maintenance of credit ratings will promote further reforms in these areas.
Directly related to debt, the credit upgrade contributes to creating a solid basis for the Government and businesses to borrow domestic and international loans at reasonable costs. This is very important when the source of ODA and concessional loans for Vietnam is decreasing.
The conference was held immediately after the Prime Minister of Vietnam approved the Scheme, in order to promptly disseminate to relevant agencies and organizations about the Scheme.
In the context of global economic challenges with far-reaching impacts on Vietnam’s economic recovery and growth, ministries, sectors, localities and businesses need to join hands and make efforts to effectively implement plans and strategies. socio-economic development strategies, sectoral and field strategies, deploying synchronous solutions to achieve the scheme’s objectives, contributing to striving to raise Vietnam’s credit rating to Investment grade.
Le Kim Lien