Việt Nam upgrades to investment grade by R&I for first time

Việt Nam upgrades to investment grade by R&I for first time

Việt Nam maintains robust growth, outpacing other Southeast Asian economies.

Construction being hastened at Phú Quốc International Airport, An Giang Province. R&I expects Việt Nam to maintain strong growth, supported by a shift towards productivity- and innovation-driven growth model, expanded public investment and sustained foreign direct investment inflows. — VNA/VNS Photo Lê Huy Hải

Japan-based credit rating agency Rating and Investment Information, Inc on October 8 upgraded Việt Nam’s foreign currency issuer rating from BB+ with a positive outlook to BBB- with a stable outlook, placing the country in the investment-grade category for the first time, the Ministry of Finance said.

R&I expects Việt Nam to maintain strong growth, supported by a shift towards a productivity and innovation driven growth models, expanded public investment, and sustained foreign direct investment inflows.

Việt Nam maintains robust growth, outpacing other Southeast Asian economies, the credit agency said, highlighting government reforms aimed at streamlining the state apparatus, promoting the private sector, improving the institutional framework and developing capital markets.

These measures are expected to strengthen the country’s growth potential and economic resilience, R&I said. Consistent implementation of the measures could help Việt Nam sustain high growth more steadily, it added.

R&I noted that Việt Nam’s public debt-to-GDP ratio remained relatively low, providing room to increase development investment.

Although the budget deficit and public debt ratio are projected to rise in the coming period, the agency said it saw no concerns over debt sustainability. Expanded public investment is expected to support future growth, while the government intends to keep recurrent expenditures under control.

R&I highlighted the country's continued current account surplus, sustained foreign direct investment inflows and relatively low external debt burden as factors supporting the economy’s resilience to external shocks.

However, the agency flagged several areas requiring continued attention, including credit growth, banking liquidity, real estate lending, the financial system’s capacity to provide sufficient capital, and the level of foreign exchange reserves.

The upgrade reflects R&I’s positive assessment of Việt Nam’s economic growth fundamentals, structural reform prospects, fiscal headroom and resilience to external shocks, according to the Ministry of Finance.

The improved rating is expected to strengthen investor confidence and facilitate access to longer-term funding for socio-economic development.

The ministry and other government agencies will continue working with R&I and other international credit rating organisations to provide timely and comprehensive information on Việt Nam’s socio-economic performance, fiscal position and public debt to ensure that future assessments are based on accurate and up-to-date data.

During the sovereign credit rating assessment in April and May 2026, the Ministry of Finance worked with other ministries and agencies and engaged directly with R&I to provide updated information on macroeconomic conditions, public finances, public debt and reform progress. 

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