Vietnam’s credit profile is characterized by a strong and stable track record of growth and its attractiveness as a foreign direct investment (FDI) destination. The fiscal strength arising from a low level of gross general government debt also extends support. However, these strengths are offset due to challenges regarding limited transparency of fiscal and balance of payments accounts, and financial sector vulnerabilities.

Additionally, poor accountability and bureaucratic rigidities are constraints on the credit profile. The lingering stress in the property sector aggravated by the corruption crackdown remains a key monitorable for its consequences on the overall economy and banking sector, in particular.