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Vietnam Must Tread Carefully to Win Investment Grade, Fitch Says

  • Rating company expects central bank to tighten in near term
  • Economic growth accelerated to 7.4% in first quarter
Motorists and pedestrians pass a construction site of a metro line in Ho Chi Minh City, Vietnam, on Jan. 11, 2018.

Motorists and pedestrians pass a construction site of a metro line in Ho Chi Minh City, Vietnam, on Jan. 11, 2018.

Photographer: Ore Huiying/Bloomberg
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Vietnam mustn’t sacrifice stability for high-speed growth if it’s to become an investment-grade economy, warned Fitch Ratings.

The rating company wants evidence that macroeconomic stability is more entrenched before considering further upgrades for Vietnam, said Stephen Schwartz, head of sovereign ratings in Asia Pacific for Fitch, which last month lifted the nation’s credit score to BB. Fitch is also monitoring efforts to address the economy’s structural weaknesses, including the reform of state-owned enterprises and management of non-performing loans.