S&P and Moody's assess that Vietnam will continue to strongly attract FDI capital flows

Sep 27, 2023

Within the framework of the business trip of the Vietnamese high-level delegation led by Prime Minister Pham Minh Chinh to participate in the High-Level Week of the 78th session of the United Nations General Assembly in the United States, on September 20, Minister of Ho Duc Phoc Finance has had working meetings with the credit rating organizations Standard & Poor's Global Ratings (S&P) and Moody's.


At the meeting with S&P, Minister Ho Duc Phoc highly appreciated S&P's annual assessment of Vietnam's credit rating. The Minister affirmed that the Ministry of Finance will closely coordinate and answer all questions of the delegation, and will propose to competent agencies to continue applying the policy, in accordance with international practices, Aiming to raise Vietnam's credit rating to Investment level (BBB) ​​by 2030.

The representative of S&P credit rating organization mentioned a number of limitations and challenges to Vietnam's credit rating, specifically about recent real estate market fluctuations.

Regarding this issue, the Ministry President Ho Duc Phoc informed that the Vietnamese Government is implementing policies to support the real estate market, such as: lowering interest rates for investors and home buyers; building social housing and amending regulations on land valuation.

Thereby, the representative of the credit rating organization S&P said that based on the positive information mentioned above, S&P will supplement key actions. This book is included in the Organization's overall assessment of the Vietnamese market.

The Minister said that recently, Prime Minister Pham Minh Chinh issued Decision No. 412/QD-TTg dated March 31, 2022 approving the "Project to improve national credit rating until 2030". The specific goal of the Project is that by 2030, Vietnam will achieve an Investment credit rating (from Baa3 on Moody's scale).

Accordingly, the Vietnamese Government aims to improve Vietnam's position and reputation in the international arena, creating favorable conditions for raising the national credit rating to Investment level by 2030, contributing to reducing funding costs. mobilize capital, reduce national credit risk.

The Minister said that recently, Prime Minister Pham Minh Chinh issued Decision No. 412/QD-TTg dated March 31, 2022 approving the "Project to improve national credit rating until 2030". The specific goal of the Project is that by 2030, Vietnam will achieve an Investment credit rating (from Baa3 on Moody's scale).

Talking about the securities sector, a representative of Moody's credit rating organization said they would provide documents, share experiences and send a team to support the State Securities Commission and the Ministry of Finance of Vietnam in the construction process. drafting and amending the decree guiding the Securities Law.

Regarding corporate bonds, Minister Ho Duc Phoc proposed that the two organizations share experiences in developing a stable and healthy bond market. In particular, the Minister emphasized the sharing of experiences of the two organizations in markets similar to Vietnam, and views on developing regulations on mandatory credit rating requirements for development enterprises. issue bonds, as well as in any case that requires collateral...

The fact that credit rating organizations such as S&P and Moody's increased the credit rating for Vietnam in 2022 and continued to maintain Vietnam's rating in 2023 shows that Vietnam's economic strength is increasingly strengthened and its ability to Vietnam's resilience to external macroeconomic shocks is recorded to be better than other countries at the same rating level, demonstrating improved policy effectiveness.

S&P and Moody's assess that Vietnam's economy will continue to benefit in many fields, but especially the ability to continue attracting foreign investment flows into the manufacturing and processing sector.

At meetings with credit rating organizations (S&P and Moody's), Minister Ho Duc Phoc thanked and asked credit rating companies to continue closely monitoring and providing evaluation and analysis opinions. Vietnam's credit rating. These opinions are very useful for the Government of Vietnam in understanding the concerns of the investor community so that the Government can continue to manage macro policies.

In addition, the Minister also informed that Vietnam and the United States have issued a Joint Statement on upgrading relations to a Comprehensive Strategic Partnership. This is the basis for US businesses to invest in Vietnam, helping Vietnamese businesses participate more deeply in the global supply chain, especially in the fields of high technology and infrastructure.


Also within the framework of the working program, Chairwoman of the State Securities Commission Vu Thi Chan Phuong had a meeting with leaders of the Regional Office of the US Securities Commission in New York and relevant departments. from Washington DC.

At the meeting, the Chairman of the State Securities Commission shared with the US Securities Commission some of the key immediate tasks of the Vietnam Securities Commission, including enhancing management efficiency. , monitor, market transparency and create conditions for Vietnamese businesses to mobilize capital effectively domestically and abroad.

In addition, the Securities Commission is also very interested in investing in information technology infrastructure to meet market requirements, especially when Vietnam's stock market is upgraded from marginal to emerging. .

In addition, the management of digital assets, the application of financial technology and artificial intelligence in market management and operation were also discussed by the two sides at the meeting.

Discussing cooperation and mutual support activities in the coming time, representatives of the US Securities Commission pledged to continue promoting support and information exchange to serve the management and supervision of regulatory agencies. securities management.

The US Securities Commission also hopes that the two sides will exchange and discuss to sign a bilateral cooperation memorandum of understanding, in addition to IOSCO's general multilateral memorandum of understanding, to further tighten the cooperative relationship. The cooperation between the two sides has been very good.

The US Securities Commission also said it will immediately organize online and in-person seminars to share information and support capacity building on topics of interest to the State Securities Commission of Vietnam as prescribed. information disclosure regulations and requirements; review of issuance registration documents; regulations on liability exemption of civil servants when performing official duties in accordance with their duties; inspection, supervision and enforcement activities...

At the end of the working session, the Chairman of the State Securities Commission expressed his joy with the positive results achieved at the working session, as well as his appreciation for the contributions and support of the US side since the meeting. Vietnam's stock market has only recently been formed.

Source: Vneconomy