Vietnam’s government analysts say the economy is rebounding despite Moody’s downgrade of the country’s credit rating this week because of banking concerns. GDP rose 5.4% in the third quarter vs. 4.7% and 4% in the first two quarters.
Although loans and scandals this summer rattled the banking system, lending has been rising, as has inflation. Industrial production is up 9.7% in September from a year earlier. Retail sales are up 17% in the first nine months. Vietnam now has a $34 million trade surplus after an $8 billion deficit last year.
And, while Moody’s downgraded Vietnam, Standard & Poor upgraded several individual Vietnamese banks, saying the risks of economic imbalances in Vietnam have subsided.