The agency cited improvements in governance and institutional quality, driven by reforms to administrative procedures, legislation and the public sector since late 2024.
According to the ministry, restructuring efforts have reduced administrative layers, merged agencies and improved coordination, helping to streamline project approvals and enhance policy implementation.
These changes have strengthened Vietnam’s credit profile, supporting macroeconomic stability and reducing potential risks. The country’s competitiveness has also improved through faster digitalisation, infrastructure investment and a more skilled workforce.
Moody’s said risks linked to US trade protectionism had eased, while Vietnam had demonstrated resilience through strong economic growth and sustained foreign direct investment inflows, reinforcing its role in global supply chains.
The Ba2 rating reflects the agency’s view that Vietnam’s core credit strengths remain intact, supported by a diversified export base, recovering domestic demand and stable fiscal conditions.
Government debt remains low and manageable, with solid repayment capacity and reduced reliance on external borrowing helping limit foreign exchange risks.
Moody’s also noted Vietnam’s resilience to external shocks, including fluctuations in energy prices and shipping costs, thanks to strong growth fundamentals and diversified economic structures.
An aerial view of Vietnam (Photo: Hoang Giam).
However, the agency warned that vulnerabilities in the banking sector, the property market and remaining institutional weaknesses could weigh on future upgrades.
The finance ministry said the improved outlook reflects growing international confidence in Vietnam’s economic management and governance, and pledged to continue working with global rating agencies to strengthen the country’s credit standing.