Fitch’s decision to change the outlook from Positive to Stable reflects their view of a deteriorating global credit condition as a result of the coronavirus outbreak, and its impact on Viet Nam through the export, tourism as well as  domestic demand channels.

During the discussion between the Ministry of Finance and competent agencies with Fitch during the sovereign rating analysis in March, Viet Nam has provided concrete evidence to demonstrate the resilience of the economy in this challenging global environment. The Government and Vietnamese people have been carrying out drastic and effective measures to proactively contain the spread of the coronavirus while maintaining socio-economic stability, laying foundations for a strong, sustained and socially inclusive recovery of the economy from the outbreak. Viet Nam’s success in containing Covid-19 has been highly praised by the World Health Organization, other governments as well as the international community.

Against the backdrop of heightened uncertainties surrounding the pandemic situation, Fitch's affirmation of Viet Nam’s sovereign credit rating at BB reflects Viet Nam’s key credit strengths remain intact, including the strong medium-term macroeconomic outlook, contained government debt burden as well as favorable external finances compared to peer countries. Fitch also acknowledged that Viet Nam has taken advantage of favorable economic conditions in recent years to consolidate the fiscal position, accumulate foreign exchange reserves and continue to build buffers against external shocks. Fitch expects growth momentum to rebound in 2021, with growth projected at 7.3% as external and domestic demand gradually recover in line with global and regional trends.

In the last month, Fitch has taken negative rating actions on 19 sovereigns globally, with 12 sovereigns downgraded and 7 with negative outlook changes.

The Ministry of Finance and relevant agencies have been working closely in order to provide timely updates to Fitch on Viet Nam’s socio-economic developments as the pandemic situation evolves. Thereby, the Ministry of Finance believes that Fitch, as well as other credit rating agencies, will have sufficient information to provide an accurate and positive view of Viet Nam's credit profile in the future./.