Investment Grade in Sight: How Vietnam’s Credit Journey Empowers Local Enterprises

With the ambition to become a premier investment destination in Asia, Vietnam has set a strategic milestone: to attain Investment Grade sovereign credit rating by 2030. This is not merely a technical financial objective but a strong commitment by the Government to strengthen fiscal capacity, improve national governance, and enhance access to global capital. 

Under Decision No. 412/QĐ-TTg (2022), the Vietnamese Government is implementing a national initiative to improve the country’s credit rating, aiming for a BBB- rating (S&P). The success of this initiative is not only significant at the national level - it also brings tangible and long-term benefits for both private and state-owned enterprises. 

•  Key Benefits for Vietnamese Businesses: From Capital Cost to Market Access 

Mr. Andrew Wood, Director of Sovereign and International Public Finance Ratings, Asia–Pacific at S&P Global Ratings, stated: “When a country achieves a higher credit rating, its international cost of capital tends to decrease over time, greatly supporting the development of businesses operating in that country.” 

According to FiinRatings - a member of FiinGroup and Vietnam’s leading independent credit rating agency - if Vietnam’s sovereign rating is upgraded to Investment Grade, the cost of funding for Vietnamese businesses could decline by 150 to 300 basis points (1.5% to 3%) in international capital markets. 

This conclusion is based on a comparative analysis of foreign currency borrowing costs of Vietnam’s leading corporates against similar peers in countries with higher sovereign ratings, such as Indonesia, Malaysia, Thailand, and the Philippines. 

• Vietnamese businesses stand to benefit across multiple dimensions: 

✅ Significantly Lower Funding Costs 

As sovereign risk declines, Vietnamese corporates will be able to issue international bonds or access loans from foreign financial institutions at lower interest rates. 

In the “Vietnam Credit Focus 2025” forum, Ms. Trinh Quynh Giao, CEO of PVI AM, noted that companies like Masan and others are currently borrowing at 8% per annum from foreign lenders, while similar companies in the region borrow at nearly half that rate. 
An Investment Grade rating would allow Vietnamese firms to expect comparable financing terms. 

✅ Improved Access to Long-Term Institutional Investors 

With Investment Grade status, large institutional investors - such as global pension funds and insurers, which are restricted from investing in sub-investment grade markets - would become eligible to allocate capital to Vietnam. 
This expands the base of long-term, stable investors and opens new channels for project financing and capital diversification. 

✅ Easier Capital Raising for Long-Term Projects 

Sectors such as infrastructure, energy, and logistics will benefit from improved access to longer-tenor bond issuances (7–10+ years), aligned with their investment cycles. 

✅ Accelerated Investment and Economic Growth 

Lower capital costs enable businesses to invest in capacity expansion and innovation. This, in turn, fosters economic growth and attracts more FDI, supporting a more resilient and competitive economy. 

✅ Improved Corporate Credit Ratings 

Many companies are currently constrained by Vietnam’s sovereign rating ceiling. An upgrade would allow room for improved corporate ratings, resulting in lower borrowing costs and stronger negotiation positions with financial partners. 

✅ Exchange Rate Stability and Foreign Exchange (FX) Risk Mitigation 

A higher sovereign rating generally reflects stronger macroeconomic stability, contributing to more stable exchange rates, especially beneficial for companies with foreign currency exposure. 

• S&P Global Ratings’ Strategic Investment in FiinRatings: A Major Catalyst for the Credit Upgrade Journey 

In February 2025, S&P Global Ratings acquired a 43.4% stake in FiinRatings, marking a significant milestone in strengthening Vietnam’s domestic credit rating infrastructure. 
This partnership not only enhances Vietnam’s local credit analytics capacity but also supports two critical pillars of sustainable development: green finance and infrastructure bond issuance. 

Mr. Louis Kuijs, Chief Economist for Asia–Pacific at S&P Global Ratings, forecasted that Vietnam could maintain a GDP growth rate of at least 6.5% over the next three years, positioning it to rival India as the fastest-growing economy in Asia. 

• Sovereign credit rating upgrade is more than a national achievement - it is a strategic catalyst for Vietnamese enterprises to expand globally. 

With lower cost of capital, longer maturities, and broader investor access, businesses will gain stronger momentum to grow, compete, and lead sustainably in the new economic era. 

➡️ FiinGroup is proud to accompany Vietnamese enterprises and the Government in elevating Vietnam’s global standing. 

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