Fitch: Vietnam view to positive

Fitch Ratings said it revised the outlook on Vietnam's long-term foreign- and local-currency issuer default ratings to positive from stable and affirmed the ratings at BB-.

The ratings on Vietnam's senior unsecured foreign- and local-currency bonds also were affirmed at BB-.

The country ceiling was affirmed at BB-, along with the short-term foreign-and local-currency issuer default ratings at 'B'.

Vietnam's ratings reflect strong growth performance and prospects, persistent current account surpluses, manageable debt service costs and sustained foreign direct investment inflows, Fitch said.

The ratings also consider a high public debt ratio, low foreign-exchange reserve buffers, macro-prudential and banking sector risks and some structural indicators being weaker than those of peers, including per capita income and human development standards, the agency explained.

The outlook revision reflects Vietnam's efforts to build a record of policy-making focused on macroeconomic stability, Fitch said.

This approach, which includes greater exchange-rate flexibility and an increasing focus on inflation stability, has supported consistently strong levels of foreign direct investment and helped maintain robust economic growth, the agency said.

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