Back to Previous Page
๐๐ข๐๐ญ๐ง๐๐ฆ ๐๐๐๐ฎ๐ซ๐๐ฌ ๐๐ญ๐ฌ ๐ ๐ข๐ซ๐ฌ๐ญ ๐๐ง๐ฏ๐๐ฌ๐ญ๐ฆ๐๐ง๐ญ-๐๐ซ๐๐๐ ๐๐๐ญ๐ข๐ง๐
Vietnam has reached an important milestone in its sovereign credit rating journey. On October 8, Japan’s Rating and Investment Information (R&I) upgraded Vietnam’s sovereign rating from BB+ to BBBโ, marking the country’s first investment-grade rating from an international credit rating agency.
The upgrade recognizes Vietnam’s strong economic fundamentals, with GDP growth reaching 9.0% y/y in 9M/2026, supported by robust manufacturing activity, resilient FDI inflows and ongoing institutional reforms.
But the bigger milestone is still ahead: securing investment-grade status from the Big Three. Vietnam is currently just one notch below investment grade at S&P and Fitch (BB+), and two notches below at Moody’s (Ba2, Positive outlook).
Reaching investment grade with these agencies could be a game changer, unlocking access to a much larger pool of global institutional capital. It could also lower sovereign borrowing costs and, in turn, improve financing conditions for Vietnamese banks and corporates.
Encouragingly, Vietnam is already taking concrete steps to address key constraints on its sovereign credit profile.
1. Strengthening banking regulations and institutional quality. The recently issued Circular 50/2026/TT-NHNN introduces the Liquidity Coverage Ratio (LCR), Net Stable Funding Ratio (NSFR) and Leverage Ratio (LEV), bringing Vietnam’s banking framework closer to Basel III standards.
2. Rebuilding foreign exchange reserves and improving external stability. Despite persistent trade surpluses and strong FDI inflows, Vietnam has struggled to accumulate foreign exchange reserves, partly reflecting substantial unrecorded capital outflows.
However, Q2/2026 balance of payments data reportedly showed a remarkable turnaround, with errors and omissions reversing to a positive US$9bn. Recent crackdowns on gold smuggling and tighter oversight of cryptocurrency trading could help reduce unrecorded foreign currency outflows.
Of course, there is still considerable work ahead. Balancing rapid economic growth with financial stability, strengthening foreign exchange reserves and further upgrading bond and equity market infrastructure will remain important priorities.
Nevertheless, R&I’s investment-grade upgrade, together with Vietnam’s recent FTSE Russell upgrade to Secondary Emerging Market status, sends an encouraging message: the country’s reforms are beginning to deliver tangible results and gain international recognition.
Original announcement from R&I
As people always say, โBig things have small beginnings.โ
