Moody’s: Domestic demand supports Vietnam’s growth outlookVietnam’s (B1 stable) credit profile is supported by its robust economic growth and diversified economy, according to Moody’s Investors Service. These credit strengths are balanced against accelerating credit growth, wide fiscal deficits and an increasing government debt burden. This injection of foreign capital is a positive trend and comes at a time of strong economic growth, which has helped to stabilise asset quality. Nevertheless, Vietnam’s banks are still facing a range of structural problems, not least of which is weak capitalisation. Fitch warned that rapid credit growth poses a risk to Vietnam’s medium-term financial stability, particularly since the credit/GDP ratio - at 110.5% in 2015.

Source: VietNamNet News September 05, 2016 02:37 UTC