Fitch affirms Vietnam

Fitch Ratings affirmed the BB- long-term foreign-currency and BB local-currency issuer default ratings of the Socialist Republic of Vietnam, along with its short-term foreign-currency issuer default rating at B and the country ceiling at BB-.

The outlook remains stable.

Despite weak public finances and the need for further banking system reforms, Vietnam's improving external financial position and sustainable economic growth continue to support its sovereign ratings, Fitch said. Vietnam's rating strengths are based on the country's net external creditor status and declining gross external debt relative to GDP, the agency said.

Continuous fiscal deficits, rising general government debt relative to GDP and the vulnerable banking system remain the major rating constraints, Fitch added.

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