Country risk in Vietnam is moderate to high with an OECD country credit grade of 5. This is akin to a speculative grade sovereign rating, which indicates a moderate to high likelihood that Vietnam will be unable and/or unwilling to meet its external debt obligations. Widespread corruption, weakness in the banking sector and rapid credit growth continue to constrain Vietnam’s rating.
The World Bank’s ease of doing business gauge—which attempts to measure regulation and red tape relevant to a domestic small to mid-sized firm—ranks Vietnam’s business climate 69 out of 190 economies. Vietnam outperforms the regional average on most gauges of doing business, but starting a business and resolving insolvency is harder in Vietnam.
Political stability is moderate. Vietnam outperforms most of the region on most dimensions of governance, except on measures of voice and accountability and regulatory quality.
The risk of expropriation is moderate in Vietnam. The US investment guide suggests that expropriation of US property is rare. Furthermore, the large influx of FDI over the past several years suggests investors are able to manage these risks.