S&P Global has maintained its long-term BB+ rating for Vietnam and B short-term rating according to its latest report.
S&P takes the position that:
- Vietnam’s economy will grow at 5.8 percent this year,
- Semiconductors will play a role in propelling Vietnam’s growth this year,
- GDP per capita will reach US$4,500 by the end of 2024,
- The government’s fiscal deficit will increase from 3.5 percent of GDP in 2023, to an average of 3.7 percent of GDP ‘over the next few years’; and
- There are vulnerabilities in Vietnam’s property sector with carry-over impacts in the banking sector (see: Vietnam’s Real Estate Market Recovery 2024: Unpacked).
On that last point, S&P Global rates Vietnam’s banking sector on its Banking Industry Country Risk Assessment matrix is rated 9. This is on a scale of one to 10 on which 1 represents the lowest risk and 10 represents the highest. This assessment “incorporates regulatory weaknesses, in addition to weak transparency and disclosure standards,” according to the report.
Full report: Vietnam Ratings Affirmed At ‘BB+/B’; Outlook Stable