Vietnam receives investment-grade rating after R&I upgrade

R&I moved Vietnam’s foreign-currency issuer credit rating into investment grade on 8 October, raising it to BBB- from BB+. The outlook changed from Positive to Stable, with the agency citing economic fundamentals, planned structural changes and resilience against external shocks.

The agency expects growth to remain high as Vietnam shifts towards greater productivity and innovation, increases public investment and continues to attract foreign direct investment. It said government reforms covering administrative restructuring, private-sector development, institutions and capital markets would improve growth potential and economic resilience.

R&I said public debt remained relatively low as a proportion of GDP, leaving scope for additional development spending. Although it projects increases in both the budget deficit and the debt ratio, it expressed no concern about debt sustainability. That assessment rests on expectations that public investment will support growth and the government will continue controlling recurrent expenditure.

The agency also cited Vietnam’s current account surplus, continuing foreign direct investment inflows and relatively low external debt burden. However, it flagged credit expansion, liquidity in the banking sector, lending to real estate, the financial system’s ability to supply sufficient funding and foreign exchange reserves as areas needing attention.

The Ministry of Finance worked with other ministries and agencies during R&I’s review in April and May 2026, supplying updates on economic conditions, fiscal performance, public debt and reforms.