R&I Upgrades Vietnam’s Sovereign Credit Rating to Investment Grade for the First Time

On 8 October 2026, Japan’s Rating and Investment Information, Inc. (R&I) upgraded Viet Nam’s long-term Foreign Currency Issuer Rating from ‘BB+’ (Positive Outlook) to ‘BBB-’ (Stable Outlook).

This is the first time Viet Nam has been placed in the Investment Grade category by an international credit rating agency, marking a significant milestone for the country’s sovereign credit standing. The upgrade reflects stronger macroeconomic fundamentals and a positive reform outlook, while potentially broadening access to international investors with stringent credit quality requirements.

According to R&I, the upgrade is underpinned by three key factors:

🔹 Strong economic growth relative to Southeast Asian peers.
🔹 Relatively sound fiscal and external positions, supported by low public and external debt burdens and stable foreign direct investment (FDI) inflows.
🔹 A positive institutional reform outlook, focused on streamlining the state apparatus, promoting private-sector development and deepening the capital market.

R&I also highlighted several risks that warrant continued monitoring, including credit growth, banking-sector liquidity, real estate-related lending, capital adequacy across the financial system and foreign exchange reserves.

💰 How Will Investment Grade Affect Viet Nam’s Access to International Capital?

In FiinRatings’ view, new international capital is likely to come first from Japanese investors. As R&I is recognised by Japan’s Financial Services Agency (FSA), the new ‘BBB-’ rating could make Viet Nam eligible for investment by certain Japanese financial institutions whose mandates require an investment-grade rating from a recognised agency.

In addition, under the Basel III standardised approach, the regulatory risk weight on certain exposures to Viet Nam’s foreign currency-denominated government bonds could fall from 100% to 50% for financial institutions able to apply R&I’s new rating.

However, the upgrade does not necessarily translate into an immediate increase in international debt capital inflows, as Viet Nam remains rated below investment grade by the three major global credit rating agencies – S&P Global Ratings, Moody’s and Fitch Ratings.

Nevertheless, FiinRatings views the upgrade as an important step towards strengthening Viet Nam’s sovereign credit standing and broadening access to international capital, particularly from Japanese financial institutions and investors in the near term.

Over the longer term, sustained macroeconomic stability, greater transparency and stronger credit quality will be essential to translating this rating milestone into improved access to funding for the Vietnamese Government and corporates, especially when global interest rates move to more favourable levels.

As a strategic partner of S&P Global, FiinRatings continues to support market participants through independent credit ratings and credit assessments. These services help enhance information transparency and support more informed credit risk assessment and pricing, contributing to the sustainable development of Viet Nam’s capital market.

*R&I is one of Japan’s two largest credit rating agencies and is part of Nikkei Group, a shareholder and strategic partner of FiinGroup, the parent company of FiinRatings.

📌 Read further analysis of Viet Nam’s sovereign rating upgrade on the Business Times: Vietnam wins first investment-grade rating, opening door to cheaper funding for growth - The Business Times
📄 View R&I’s official rating announcement dated 8 October 2026 at: THIS LINK

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