Striving to improve national credit rating to investment grade

VCN – Improving the position and credit of Vietnam in the international market, trade facilitation in order to upgrade credit rating to investment grade, contributing to reducing the cost of fundraising, reducing the level of risk are the objectives of the Scheme on National Credit Rating Improvement to 2030.
The burden of transportation and container rental costs are weighing heavily on businesses
Illustration image. Source: Internet

Deputy Prime Minister Le Minh Khai has just signed Decision No. 412/QD-TTg dated March 31, 2022 approving the "Scheme on National Credit Rating Improvement to 2030".

The specific objective is to achieve a credit rating of Baa3 (for Moody's) or BBB- (for S&P and Fitch) or higher by 2030.

Besides that, the average growth rate of gross domestic product (GDP) for the whole period is about 7%/year; GDP per capita at current prices by 2030 will reach about US$7,500; total social investment averages 33-35% of GDP.

The scheme also aims to control the state budget deficit approved by the National Assembly in the annual state budget estimate and the 5-year national financial plan, striving to reach a state budget deficit by 2030 of 3% of the GDP; public debt does not exceed 60% of GDP, government debt does not exceed 50% of GDP.

Credit Rating Improvement: Building a strong public finance platform

One of the main solutions of the Scheme is to build a strong public finance base, expand the sustainable revenue base to improve debt ratios and promote fiscal consolidation.

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

Besides that, improving fiscal indicators, gradually reducing the state budget deficit, the ratio of public debt and government debt compared to GDP.

At the same time, continue to strengthen the transparency of fiscal policy; to step up the management and administration of budgetary finance in the medium term, ensure synchronization and consistency between the medium-term public investment plan and the national financial plan, and borrow and repay the 5-year public debt; implementing the 3-year state budget-financial plan, the 3-year public debt management program following the provisions of law and international practices; strengthen the application of international good practices in risk management of the Government debt portfolio, ensuring sustainable debt.

Promoting the settlement of the remaining bad debts and assets

Another solution is to improve the structure and quality of the banking sector and state-owned enterprises to reduce the risk of contingent debts to the state budget.

Specifically, strengthening the handling of bad debts, limiting arising bad debts, continuing to restructure the banking industry, minimizing bad debt risks through measures to increase the capitalization of commercial banks, improving the quality of the bank's assets and loans, improving the ratio of assets and liabilities, speeding up the progress of handling the remaining bad debts/assets.

Along with that, continue to perfect the legal corridor on credit extension, effectively expand credit, focus on production and business fields, priority areas following the Government's policy; and strictly control high-risk areas.

In addition, closely monitor and ensure that all guaranteed Government loans are paid on time; continue to rearrange state-owned enterprises to improve the efficiency of state-owned enterprises after equitization; enhance transparency and disclosure of bank and corporate data to improve the predictability of financial performance.

The ministries, ministerial-level agencies, agencies under the Government, People's Committees of provinces and centrally-run cities and relevant agencies are responsible for directing and participating in the implementation of relevant contents of the scheme; proactively coordinate with the Ministry of Finance in performing tasks related to national credit rating; take responsibility for providing and explaining matters within the assigned functions and tasks.

By Hương Dịu/Thanh Thuy

Related News

Facilitating trade and bolstering customs enforcement at Vinh Xuong border crossing

Facilitating trade and bolstering customs enforcement at Vinh Xuong border crossing

VCN - With the characteristics of managing international border gates with both waterways and roads, Vinh Xuong International Border Gate Customs Branch (An Giang Customs Department) always has flexible solutions to ensure both convenience and strict control of import and export goods.
The Philippines Pioneers Corruption Risk Mapping to Strengthen Integrity and Trade Facilitation in Customs

The Philippines Pioneers Corruption Risk Mapping to Strengthen Integrity and Trade Facilitation in Customs

VCN - The Bureau of Customs of The Philippines (BOC) has taken a groundbreaking step towards enhancing transparency and accountability by implementing an innovative approach to corruption risk mapping with support from the World Customs Organization (WCO)
What are the secrets to customs brokers

What are the secrets to customs brokers' success?

VCN - In the context of increasingly growing import and export activities, the management and use of customs broker agents has become an important solution to promote smooth customs procedures. This model is being widely applied in many developed countries. And in Vietnam, the development potential of customs broker agents is still very large.
HCM City Customs experiences a marked upturn in state revenue collections

HCM City Customs experiences a marked upturn in state revenue collections

VCN - The state revenue of HCM City Customs Department in the third quarter of 2024 has clearly improved when the collection results have increased compared to the same period last year.

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.
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).
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.
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