Fitch forecasts Vietnam's economy to grow seven per cent in midterm and country has many favourable signs

HANOI (Bernama-Xinhua): Credit rating agency Fitch Ratings has forecast that Vietnam's economic growth in the medium term will be at around 7 per cent, with many favourable signs.

It has upgraded Vietnam's long-term Issuer Default Rating (IDR) to "BB+", which it said reflects the country's favourable medium-term growth outlook.

The outlook is underpinned by robust foreign direct investment inflows which the agency expects will continue to drive sustained improvements in the country's structural credit metrics, Vietnam News Agency reported Thursday.

The agency showed increasing confidence that near-term economic headwinds from property-sector stresses, weak external demand, and delays in policy implementation owing to a corruption crackdown are unlikely to affect medium-term macroeconomic prospects and that policy buffers are sufficient to manage near-term risks.

In its report released in November, Fitch forecast that Vietnam's gross domestic product growth will accelerate to 6.3 per cent in 2024 and 7.0 per cent in 2025. - Bernama-Xinhua