Log in
Business

Vietnam Fin Min objects to Moody’s changing to negative outlook

The finance ministry reiterated that the government is always serious about meeting commitments to timely debt payments with development partners and international financial institutions.

The Vietnamese Ministry of Finance (MoF) has voiced its objection after Moody's Investors Service changed the country’s rating outlook to negative although the Vietnamese government has made great efforts to improve the coordination and transparency around debt management.

 Inside the headquarters of the Vietnamese Ministry of Finance


Moody’s late on Wednesday confirmed the Government of Vietnam's Ba3 local and foreign currency issuer and senior unsecured ratings, but changed the outlook to negative, concluding the review for downgrade that was initiated on October 9, 2019.

“The negative outlook reflects some ongoing risk of payment delays on some of the government's indirect debt obligations, in the absence of more tangible and significant measures to improve the coordination and transparency around debt management within the administration,” the rating agency said in a statement.

In a release shortly after the Moody’s announcement, the MoF argued that Moody’s lowering the outlook based just on a single incident regarding the Vietnamese government’s provisional debt obligations without taking into account the country’s socio-economic achievements, improved resilience against external shocks and enhanced sustainability of the public debt portfolio is “inappropriate.”

The ministry noted government agencies have taken timely measures to improve administrative coordination in debt payments, ensuring no loss to the Creditors.

It also reiterated the government is always serious about meeting commitments to timely debt payments with development partners and international financial institutions.

In the time ahead, the Government of Vietnam will continue to pursue the goal of strengthening the macroeconomic foundation, boosting institutional reforms to ensure debt affordability and national financial security, the MoF asserted.

The ministry affirmed it stands ready to provide transparent information and convincing evidence of the Vietnamese government’s serious commitment to debt payment so that for Moody’s and other rating agencies have sufficient information and accurate and positive view on Vietnam’s credit profile.

Reactions:
Share:
Trending
Most Viewed
Related news
French leading corporations propose nuclear power, high-speed rail cooperation in Vietnam

French leading corporations propose nuclear power, high-speed rail cooperation in Vietnam

Top French firms like EDF, Alstom, and Thales are looking to partner with Vietnam on nuclear power, high-speed rail, and aerospace projects.

Vietnam's firm launches the Philippines' first electric taxi service

Vietnam's firm launches the Philippines' first electric taxi service

The Philippines is GSM’s fourth market after Vietnam, Laos, and Indonesia, signaling a significant step in its Go Green Global strategy for expanding electric vehicles internationally.

Qualcomm's Hanoi-based AI R&D center is the 3rd largest globally 

Qualcomm's Hanoi-based AI R&D center is the 3rd largest globally 

The establishment of Qualcomm's new Artificial Intelligence Research and Development Center reflects Vietnam’s efforts to attract global tech investment and talent, aligning with its ambition to become a regional AI powerhouse.

US-ASEAN Business Council supports balanced Vietnam-US trade agreement

US-ASEAN Business Council supports balanced Vietnam-US trade agreement

The US's long-term cooperation with Vietnam would yield strategic benefits and help improve a fair and balanced trade.

Hanoi prioritizes job creation for growth

Hanoi prioritizes job creation for growth

The improvement in Hanoi's labor market indicates the city's growth momentum between January and May.

Vietnam targets 70% of adults to shop online by 2030

Vietnam targets 70% of adults to shop online by 2030

Businesses and consumers are the main forces driving sustainable e-commerce.

Vietnam enables 20 million young people to launch e-commerce startups

Vietnam enables 20 million young people to launch e-commerce startups

The program focuses on delivering AI and digital business training to youth across Vietnam, with a special emphasis on underserved and remote communities.

Hanoi expands safe agricultural supply chains

Hanoi expands safe agricultural supply chains

Hanoi has established 170 food safety chains, spanning from production to consumption and engaging businesses, cooperatives, and farmers.