Fitch Ratings affirms Vietnam at 'BB' with positive outlook

In a commentary published on its website, Fitch Ratings said Vietnam's rating reflects its strong medium-term growth prospects, lower government debt compared to peers, and favourable external debt profile.

The agency expected a growth rate of 7.4% for Vietnam in 2022, led by strong gains in industry, construction and services. High FDI in manufacturing should continue to support robust growth in the medium term.

However, as downside risks remain, related to the economic implications of the Ukraine war and tighter global funding conditions, Fitch Ratings forecast a slowdown in GDP growth, to 6.2% in 2023.

According to the agency, the State Bank of Vietnam (SBV) has intervened in the foreign exchange market, which led to FX reserves falling to under 100 billion USD, after rising to a record 109.8 billion USD at the end of 2021.