Fitch upgrades Vietnam's outlook to positive, citing resilience to Covid-19

Friday, 2021-04-02 10:18:56
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Vietnam's economy is expected to grow by 7% in 2021 and 2022.
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NDO - Credit ratings agency Fitch Ratings has revised Vietnam’s outlook from stable to positive, attributing its decision to the country’s growth and the resilience of public finances to the Covid-19 pandemic.

The agency also affirmed Vietnam’s long-term foreign-currency issuer default rating at “BB”.

Vietnam was one of the few countries in Asia-Pacific and the “BB” rating category to have maintained positive growth in 2020, at 2.9%, Fitch said in a statement on its website.

It added that the relative strength of Vietnam's performance was largely due to its success in bringing the coronavirus outbreak swiftly under control.

With the rollout of Vietnam’s vaccination programme, Fitch expects the Vietnamese economy to grow 7% in 2021 and 2022, in line with broader global economic recovery and a gradual normalisation of domestic economic activity.

However, Fitch warned that Vietnam's economic prospects will remain susceptible to shifts in external demand due to the economy's high degree of openness.