Striving to raise the national credit rating to Investment level

This is the goal set out in Decision 412/QD-TTg dated March 31, 2022 approving the "Project on Improving the National Credit Rating to 2030" (hereinafter referred to as the Scheme).

Striving to raise the national credit rating to Investment level

Striving to raise the national credit rating to Investment level (Artwork)

Specifically, the overall objective of the Project is to strive by 2030 to be a developing country with modern industry and high middle income; have a complete, competitive, effective and efficient management institution; the economy developed strongly on the basis of science and technology in association with improving efficiency in foreign affairs and international integration, continuing to improve the investment environment; improving Vietnam's position and reputation in the international arena, creating favorable conditions for raising the national credit rating to Investment level , contributing to reducing capital mobilization costs and reducing national credit risk.

In addition, the Project also sets out the following specific objectives:

- By 2030, achieve a credit rating of Baa3 (for Moody's) or BBB- (for S&P and Fitch) or higher.

- Key macroeconomic indicators: The average growth rate of gross domestic product (GDP) for the whole period is about 7%/year; GDP per capita at current prices by 2030 will reach about 7,500 USD; total social investment averaged 33-35% of GDP.

- Fiscal targets: Control the state budget deficit approved by the National Assembly in the annual state budget estimate and the 5-year national financial plan, strive to overspend the state budget until next year. 2030 about 3% of GDP; public debt does not exceed 60% of GDP, government debt does not exceed 50% of GDP.

- Indicators in the monetary and banking sectors: The minimum capital adequacy ratio of commercial banks in the 2021-2025 period will reach 11-12%; by 2030 maintain at least 12%; the ratio of equity to risky assets of the banking sector is at least 9%; maintain foreign exchange reserves equivalent to a minimum of 16 weeks of imports.

- Key social indicators: The Human Development Index (HDI) remained above 0.7.

- Key environmental indicators: Forest coverage rate is stable at 42%; the rate of treatment and reuse of wastewater into the river basin environment reaches over 70%; reduce greenhouse gas emissions by 9%.

To achieve the above goal, the Project sets out the main solutions, for example:

- Enhance efficiency, raise awareness of the importance of national credit rating, strengthen cooperation with credit rating agencies and international organizations, in which:

+ Strengthening learning from international experiences, actively consulting with domestic and international consultants, constantly raising awareness of the importance of national credit rating, thereby improving the quality of the country's credit rating. amount of information provided, methods of working with credit rating agencies to reflect positive information on macroeconomics, fiscal, monetary, and public debt management.

+ Develop regulations on providing specific, up-to-date and topical information in areas such as the political situation; guidelines, guidelines, policies and strategies for socio-economic development of Vietnam; policies on fiscal, monetary, price, trade, investment, public debt; administrative reform results and information at the request of the Ministry of Finance to serve the national credit rating assessment. Ministries and sectors have a roadmap to increase the publication and sharing of more detailed information in the digital environment.

- Improve the structure and quality of the banking sector and state-owned enterprises to reduce the risk of contingent liabilities to the state budget,...

See details in Decision 412/QD-TTg issued on March 31, 2022.

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