Deputy Prime Minister Le Minh Khai has approved the sovereign credit rating improvement project by 2030, part of an effort to make Vietnam a developing and upper-middle-income country with modern industry, heightening the country’s international reputation and reducing credit risks.

At a transaction branch of Vietcombank.

The country sets to raise its credit rating to Baa3 or better on Moody’s scale and BBB- or better on the Standard & Poor’s and Fitch by 2030, which are considered as “investment-grade”.

Under the project, the annual GDP growth during the period will average about 7%, with per capita GDP at the current price by 2030 reaching about US$7,500, and total social investment accounting for some 33% – 35% of the GDP.

Vietnam will also better control the State budget overspending, aiming to reduce the overspending to around 3% of the GDP and ensure that public and government debts will not exceed 60% and 50% of the GDP, respectively.

The main solutions are to build a strong public financial system, improve debt indexes, promote fiscal consolidation, enhance the transparency of fiscal policies, manage investment plans on a medium-term basis, and foster the harmony between the medium-run investment and the national financial plans.

Additionally, the project highlighted the need to enhance the structure and quality of the banking system and State-owned enterprises to lower risks for the State budget, and strengthen regulatory framework on providing loans and expanding credit growth, with a focus on production and the Government’s priority areas.

Vietnam’s current credit rating on S&P and Fitch’s scale stands at BB while the country receives the rating of Ba3 on the Moody’s.

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