Moody's ups Vietnam view to positive

Moody's Investor Service said it changed to positive from stable its outlook for Vietnam's Ba3 foreign-currency government bond rating and assigned a Ba3 local-currency government bond rating with a positive outlook.

The change in outlook was prompted by continued success in the country's externally oriented development policies and overall stability in the government's fiscal position, Moody's said, even as the authorities deliberately run budget deficits to finance investment and to boost the level of national income.

Vietnam's foreign-currency country ceiling for bonds and notes remains at Ba2, with a stable outlook. The outlook on the country's B1 foreign-currency ceiling for deposits was changed to positive from stable and the local-currency bond ceiling remains at Ba1, the agency said.

Vietnam's accession to the World Trade Organization in January and gaining of permanent normal trade relations status from the U.S. Congress last December already have facilitated a surge in foreign investment inflows, helping to ensure the long-term health of the country's external payments position, Moody's said.

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