Vietnam's economic expansion has been driven by strong FDI, mostly into the manufacturing sector, and steady export growth.

Fitch Ratings believes larger, more established finance companies are better-placed to meet the new requirements while newer, smaller companies that concentrate on cash loans may find it harder to shift their business models.

Fitch Rating keeps the positive rating outlook for Vietnamese banks.

Fitch also lowered Vietnam's GDP growth projections to 3.3% in 2020 from 7.0% in 2019, on account of the pandemic.

The rating showcases the strong medium-term macroeconomic outlook, contained government debt burden as well as favorable external finances compared to peer countries.