Vietnam Outlook Raised to 'Positive' As Moody's Keeps Ba2 Rating
By Reuters | 04 May, 2026

Ratings agency Moody's raised Vietnam's outlook from "stable" on rising confidence in a strengthening credit profile over the medium term thanks to reforms implemented since late-2024.

Ratings agency Moody's improved its outlook on Vietnam to "positive" from "stable" on Monday, citing rising confidence in the country's ability to strengthen its credit profile over the medium term.

The agency, which affirmed its Ba2 rating, said Vietnam's institutional quality and governance were improving, thanks to reforms implemented since late-2024, and downside risks from trade measures imposed by the U.S. had eased compared with earlier expectations.

Last month, FTSE Russell confirmed it would upgrade Vietnam to emerging market status from frontier status in September, putting it on a par with markets like India and China, following market-friendly reforms by the communist-ruled Southeast Asian country.

A senior official at S&P Ratings last month said Vietnam would remain Asia's fastest-growing nation after India through 2028, but warned heavy public spending may lead to larger fiscal deficits.

(Reporting by Shashwat Awasthi in Bengaluru; Editing by Shilpi Majumdar)