Vietnam sets up working group to help improve credit rating

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Vietnam will establish a working group that will aim to improve the country's sovereign credit rating, Finance Minister Vuong Dinh Hue said in a statement on Tuesday.

Moody's Investors Service has a negative outlook on the country's B1 credit rating, four levels below investment grade. The New York-based company downgraded Vietnam's long-term foreign-currency rating in December 2010, as did Standard & Poor's.

Vietnam is struggling to contain the fastest inflation in Asia, while facing slower growth and a persistent trade deficit.

The economy is vulnerable to systemic risk resulting in part from undercapitalized banks, rising debt and deteriorating corporate earnings, Credit Suisse Group AG said in September.

The working group will "study and build up a project to improve the country's credit rating" by providing information and figures to international rating companies, the finance ministry said in the statement posted on the ministry's website. It will work with them during their rating process, "aiming for an objective, genuine rating of Vietnam," the ministry said.

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