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Moody’s upgrades Vietnam outlook to Positive, cites institutional reforms

Moody’s upgrades Vietnam outlook to Positive, cites institutional reforms

VOV.VN - Moody’s has upgraded Vietnam’s outlook to Positive from Stable and affirmed its Ba2 sovereign rating, showing confidence in the country’s improving credit profile over the medium term.

The credit rating agency said improvements in Vietnam’s institutional and governance quality are being driven by administrative, legal and public sector reforms initiated since late 2024. The reform process is gradually delivering initial results, with institutional restructuring reducing administrative layers, consolidating ministries and strengthening coordination among government agencies, helping improve project approval processes and administrative procedures.

These changes are supporting stronger institutional scores in Vietnam’s credit profile, contributing to macroeconomic stability and lowering potential risks. At the same time, the economy’s competitiveness is improving through digitalisation, infrastructure investment, human capital development and capital market expansion.

Moody’s said risks from US trade protection measures have eased compared with earlier expectations, while Vietnam has shown resilience through robust economic growth and sustained foreign direct investment inflows, reinforcing its role in global supply chains.

The affirmation of the Ba2 rating reflects Moody’s view that Vietnam’s core credit strengths remain intact. Growth prospects continue to be supported by a diversified export base, recovering domestic demand and stable FDI inflows.

Vietnam’s fiscal strength remains a key credit support, with government debt at low and stable levels and solid debt-servicing capacity. Reduced reliance on external borrowing helps limit foreign exchange risks and strengthens resilience to external shocks.

Moody’s said Vietnam has the capacity to withstand shocks from energy prices, transport costs and inflation pressures linked to geopolitical developments, supported by a strong growth foundation, solid external buffers, low foreign currency risk exposure and diversified energy and export structures.

However, the agency noted that risks in the banking system, the real estate market and remaining institutional constraints, despite improvements, could limit upward pressure on the rating.

The outlook upgrade demonstrates international recognition of Vietnam’s efforts to maintain macroeconomic stability and promote institutional reforms.

The Ministry of Finance and relevant government agencies will continue to coordinate with Moody’s and other rating agencies to provide updated and comprehensive information for future assessments of Vietnam’s credit profile.


Source: VOV

Photo: Illustrative image

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Taiwanese tech major eyes $149 mln investment expansion in Vietnam

Taiwanese tech major eyes $149 mln investment expansion in Vietnam

Taking all announced investments into account, Lite-On's total capital commitment in Vietnam is estimated to have surpassed the $1.2 billion mark.

In a filing to the Taiwan Stock Exchange (TWSE) in late April, Taiwanese Lite-On Technology announced plans to invest an additional $149 million into its wholly-owned subsidiaries in Vietnam.

Specifically, as reported by TNGlobal, $110 million will be channeled into Lite-On Vietnam to facilitate production capacity expansion. The remaining $39 million will be allocated to Lite-On Technology Vietnam to fund the construction of a new factory and cover operating expenses in Quang Ninh province, northern Vietnam.

These funds are expected to be disbursed in phases, depending on actual business requirements.

Following this capital hike, Lite-On’s cumulative investment in Lite-On Vietnam will reach approximately $432.5 million. Meanwhile, Lite-On Technology Vietnam will see its total capital rise to roughly $159 million.

Lite-On stated that these investment decisions received full consensus from its leadership, with no dissenting opinions from board members. Furthermore, the company emphasized that this additional capital injection does not involve any changes to the group’s current business model.

Taking all announced investments into account, Lite-On's total capital commitment in Vietnam is estimated to have surpassed the $1.2 billion mark.


Indian investment in Vietnam continues to flourish

Indian investment in Vietnam continues to flourish

Indian investors launching 30 new projects worth more than $95.2 million in Vietnam in the first quarter of 2026.

Indian investment in Vietnam has gained notable momentum in recent years with 503 current valid projects worth over $1.17 billion, according to the Foreign Investment Agency under the Ministry of Finance.

In the first three months of 2026, Indian investors launched 30 new projects worth more than $95.2 million—an eightfold increase compared to the same period last year, when newly registered capital stood at just over $10.7 million.

Indian capital has largely been channelled into sectors where its firms hold competitive advantages, including manufacturing and processing, electricity production and distribution, and mining. This has helped establish a steady presence in several key industries.

Notable projects include the $94.5 million Son Hoa sugar plant in central Dak Lak province, invested by KCP Group, a $90 million instant coffee processing facility by Ngon Coffee Co., Ltd. (under CCL Products), and the nearly $72 million Infra 1 solar power plant in central Khanh Hoa province, developed by Shapoorji Pallonji Group.

Although most projects remain modest in scale, the presence of major Indian corporations such as Tata Group, KCP, CCL Products and HCL Technologies reflects a growing trend of expansion, particularly in agro-processing, information technology and energy.

Beyond existing investments, Vietnam is attracting increasing interest from leading Indian firms. In early April, a business delegation from the Confederation of Indian Industry visited Vietnam to explore new opportunities in infrastructure, energy, IT, manufacturing, high-tech agriculture and supply chains.

Bilateral trade has also seen steady growth, reaching $16.46 billion in 2025, up 10.5% year-on-year. Both countries are now working toward a target of $20 billion in the near future.


Vietnam's CPI in April up 0.84% month-on-month

Vietnam's CPI in April up 0.84% month-on-month

The growth driven largely by a sharp increase in domestic gas prices, alongside higher costs for dining-out services and construction materials.

Vietnam’s Consumer Price Index (CPI) rose 0.84% in April from the previous month, driven largely by a sharp increase in domestic gas prices, alongside higher costs for dining-out services and construction materials, the National Statistics Office reported.

Compared with December 2025, the CPI climbed 3.31%, and it was up 5.46% year-on-year. In the first four months of 2026, the CPI increased 3.99% from a year earlier, while core inflation rose 3.89%.

Prices rose in 10 of the 11 main goods and services groups, with transportation being the only category to record a decline.

Housing and construction-related costs recorded the largest increase, with the group covering housing, electricity, water, fuel and construction materials rising 2.59%, contributing 0.59 percentage points to the overall CPI. The surge was mainly driven by a 35.3% jump in gas prices. Higher prices for kerosene (up 26.95%), environmental sanitation services (4.28%) and home maintenance materials (4.11%) also added upward pressure.

Food and dining services posted the second-largest increase, rising 0.58% and contributing 0.21 percentage points to the CPI. Notably, the cost of eating out climbed 1.94% during the month.

Other categories also recorded moderate increases, including beverages and tobacco (up 0.85%), household equipment and goods (0.78%)—reflecting higher material and labour costs—and culture, entertainment and tourism services (0.63%).

In contrast, transportation prices fell 0.81% in April, trimming 0.08 percentage points from the overall CPI.


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