credit ratings

Moody's Investors Service upgraded the Government of Vietnam's long-term issuer and senior unsecured rating from Ba3 to Ba2 and changed the outlook from stable to positive

As Vietnam has become a middle-income country and will gradually depend more on foreign commercial loans, the improvement of the sovereign credit ratings will help the Government, businesses, and financial and credit institutions be more cost-effective when mobilising loans or issuing bonds to international capital markets, according to the Ministry of Finance.

A major worry of the banking sector for the whole of 2021 is the increase of bad debt, especially when there are many potential bad debts under restructuring.