Improving national credit rating in the new period

VCN - With new goals of improving the national credit rating for the period up to 2030, a series of solutions have been developed in order to help the Government and businesses achieve more cost-effectiveness in capital mobilization.
Create a mechanism to develop a healthy market Create a mechanism to develop a healthy market
Striving to improve national credit rating to investment grade Striving to improve national credit rating to investment grade
National Credit Rating Improvement Project by 2030 adopted National Credit Rating Improvement Project by 2030 adopted
Illustrative Photo: VNA
Illustrative Photo: VNA

Five solutions to improve national credit rating

According to the National Credit Rating Improvement Project by 2030, Vietnam sets to raise its credit rating to Baa3 or better on the Moody's scale or BBB or better on the Standard & Poor’s and Fitch scale by 2030.

For fiscal targets, Vietnam strives to control the state budget aiming to reduce overspending to around 3% of the GDP and ensure that public and government debts will not exceed 60% and 50% of GDP, respectively.

According to Mr. Truong Hung Long, Director of the Department of Debt Management and External Finance (Ministry of Finance), the overall goal of the Party and State in the 10-year socio-economic development strategy for the 2021-2030 period is to "Enhance the position and prestige of Vietnam in the international arena", therefore, the Prime Minister's approval for National Credit Rating Improvement Project by 2030 is of great significance.

The proposed goals and orientations to improve the national credit rating are expected to create positive momentum and create prospects for the improvement of Vietnam's national credit rating in line with the requirements of the Party, State and Government in the medium and long term.

In the near future, considering that Vietnam has become a middle-income country and will gradually depend more on foreign commercial loans, the national credit rating improvement will help the Government, businesses, financial institutions and credit institutions achieve more cost-effectiveness in capital mobilization or bond issuance to international capital markets.

To achieve the above goals, five key solutions have been developed. Accordingly, Vietnam will implement the tasks and solutions set out in the socio-economic development strategy for the 2021-2030 period and the socio-economic development plans in each five-year period.

In addition, Vietnam will improve the quality of institutions, governance and enhance the transparency of data in line with international practices. Moreover, the country will actively participate and closely monitor the Worldwide Governance Indicators (WGI) and other global rankings on governance, business environment and human development.

Building a strong public financial system

In addition, an important solution directly related to the Ministry of Finance is to build a strong public financial system, expand the sustainable revenue base to improve debt ratios and promote fiscal consolidation.

Accordingly, Vietnam will continue to strengthen the healthy fiscal system, and focus on improving the score on state budget revenue through perfecting the collection policy system in association with restructuring state budget revenue towards covering all revenue sources and expanding the revenue base, especially new revenue sources in line with reality, integration commitments and international practices.

Along with that, Vietnam will improve fiscal indicators, reduce state budget overspending, the public debt and government debt; enhance the transparency of fiscal policy; promote the management of budgetary finance in the medium term, harmony of the medium-term public investment plan and the national financial plan, and the five-year public debt borrowing and repayment plan; implement the three-year state budget-financial plan, the three-year public debt management program in accordance with laws and international practices; strengthen the application of international practices in risk management of the Government debt portfolio.

In order to contribute to improving the national credit rating and raising awareness of the importance of the national credit rating, the strengthening of cooperation with credit rating agencies and other international organizations will also be a focus in the near future.

Vietnam needs to better sovereign credit ratings: ministry Vietnam needs to better sovereign credit ratings: ministry

Accordingly, Vietnam will learn from international experience, actively consult domestic and international experts, and constantly raise awareness of the importance of the national credit rating, thereby improving the quality of the information provided, methods of working with credit rating agencies to reflect positive information on macroeconomics, fiscal, monetary, and public debt management.

Furthermore, Vietnam will improve the initiative and coordination among ministries, agencies and organizations.

By Hoai Anh/ Huyen Trang

Related News

Strengthening the financial “health” of state-owned enterprises

Strengthening the financial “health” of state-owned enterprises

VCN - The state economy plays a key role in the socio-economic development process, but it is necessary to strengthen the financial health and competitiveness of state-owned enterprises (SOEs).
Public investment spending up 1.8% in first 10 months of 2024

Public investment spending up 1.8% in first 10 months of 2024

VCN - Public investment from Vietnam’s state budget saw steady growth in the first ten months of 2024, reaching 64.3% of the annual target—an increase of 1.8% compared to the same period last year.
“New path” for small and micro enterprises to access capital

“New path” for small and micro enterprises to access capital

VCN - Small and micro enterprises and business households are often classified as high-risk, so banks are not interested in granting credit. Therefore, improving efficiency and promoting the application of technology for financial inclusion is the way for these enterprises to access capital.
Fiscal policy needs to return to normal state in new period

Fiscal policy needs to return to normal state in new period

VCN - To recover the economy during and after the Covid-19 pandemic, fiscal policy has been flexibly and promptly managed, becoming a solid foundation to help businesses and the economy gradually overcome difficulties. After nearly 5 years, although there are still difficulties, the economy is gradually returning to a high growth trajectory. In that context, it is necessary to let fiscal policy return to normal state.

Latest News

Banks increase non-interest revenue

Banks increase non-interest revenue

VCN - Slow credit demand and fierce competition have forced banks to seek ways to increase non-interest revenue, especially when there is a lot of support from the digital transformation of the entire banking system.
Monetary policy forecast unlikely to loosen further

Monetary policy forecast unlikely to loosen further

It will be difficult for the State Bank of Vietnam (SBV) to further loosen monetary policy due to a rising USD/VNĐ exchange rate pressure, experts said.
World Bank outlines path for Vietnam to reach high income status

World Bank outlines path for Vietnam to reach high income status

The World Bank (WB) has released a report which explores how Vietnam can upgrade its participation in global value chains to become a high-income country by 2045.
Strictly control public debt and ensure national financial security  2025

Strictly control public debt and ensure national financial security 2025

VCN – In order to achieve goal of strictly managing public debt and maintaining security and safety of the national financial system in 2025, it is necessary to ensure the borrowings and repayments of public debts is within the approved estimate; closely monitor public debt indicators to ensure that they are within the ceiling and warning thresholds approved by the National Assembly.

More News

Revising the title of a draft of 1 Law amending seven finance-related laws

Revising the title of a draft of 1 Law amending seven finance-related laws

VCN - On November 19, 2024, the Standing Committee of the National Assembly (SCNA) discussed amendments and refinements to the draft of a law revising seven existing finance-related laws. Concluding the session, Vice Chairman of the National Assembly Nguyen Duc Hai emphasized the need for the Government to direct the drafting body and relevant agencies to collaborate closely to finalize a persuasive and widely supported report, ensuring the quality of the draft law for the National Assembly's consideration and decision.
Transparency evates the standing of listed companies

Transparency evates the standing of listed companies

VCN - According to the Hanoi Stock Exchange (HNX), the number of companies placed under warning, control, or restricted trading on the listed and registered markets has increased over the past two years compared to 2022.
State-owned securities company trails competitors

State-owned securities company trails competitors

Contrary to the outstanding performances in the banking sector, the securities subsidiaries of major banks have yet to fully leverage their potential, despite numerous inherent advantages.
U.S. Treasury continues to affirm Vietnam does not manipulate currency

U.S. Treasury continues to affirm Vietnam does not manipulate currency

VCN - In its latest report, the U.S. Department of the Treasury has positively assessed Vietnam's monetary policy, reaffirming that Vietnam does not engage in currency manipulation.
Exchange rate fluctuations bring huge profits to many banks

Exchange rate fluctuations bring huge profits to many banks

Net profits from the foreign exchange trading segment of many banks have gained positive results thanks to a strong USD/VNĐ exchange rate fluctuations this year.
A “picture” of bank profits in the first nine months of 2024

A “picture” of bank profits in the first nine months of 2024

VCN - Pre-tax profits for banks during the first nine months of 2024 remained positive, exceeding 200 trillion VND, solidifying the sector's position as a market leader.
Many challenges in restructuring public finance

Many challenges in restructuring public finance

VCN - Restructuring public finance is an important step to improve state financial management, ensure resources are allocated reasonably and effectively, contributing to the country's sustainable development. In addition to the achieved results, the process of accelerating public finance restructuring also faces many pressures.
Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

VCN - E-commerce platforms that declare and pay taxes on behalf of traders not only help to reduce the number of tax declaration points but also reduce the cost of compliance with administrative procedures for the whole society because only one point as the e-commerce trading platform implements tax deduction, payment and declaration on behalf of tens, hundreds of thousands of individuals and business households on the platform.
Disbursement of public investment must be accelerated: Deputy PM

Disbursement of public investment must be accelerated: Deputy PM

Deputy Prime Minister Ho Duc Phoc has called on ministries, agencies, and localities to accelerate the disbursement of public investment from now until the year-end and further tighten investment management.
Read More

Your care

Latest Most read
Banks increase non-interest revenue

Banks increase non-interest revenue

VCN - In the first 9 months of 2024, the group of banks leading in profit has focused on increasing the ratio of non-term deposits (CASA) to help reduce operating costs, resulting in positive credit growth.
Monetary policy forecast unlikely to loosen further

Monetary policy forecast unlikely to loosen further

It will be difficult for the State Bank of Vietnam (SBV) to further loosen monetary policy due to a rising USD/VNĐ exchange rate pressure, experts said.
World Bank outlines path for Vietnam to reach high income status

World Bank outlines path for Vietnam to reach high income status

The World Bank (WB) has released a report which explores how Vietnam can upgrade its participation in global value chains to become a high-income country by 2045.
Strictly control public debt and ensure national financial security  2025

Strictly control public debt and ensure national financial security 2025

VCN - According to the plan for borrowing and repaying public debt and foreign debt of the country in 2025, the total borrowing demand of the Government in the year is expected to be at VND 815,238 billion, an increase of 20.6% compared to the Government'
Revising the title of a draft of 1 Law amending seven finance-related laws

Revising the title of a draft of 1 Law amending seven finance-related laws

On November 19, 2024, the Standing Committee of the National Assembly (SCNA) discussed amendments and refinements to the draft of a law revising seven existing finance-related laws.
Mobile Version