The finance ministry reiterated that the government is always serious about meeting commitments to timely debt payments with development partners and international financial institutions.

Moody's rating actions on the 18 banks are driven purely by the sovereign rating action, and do not reflect a weakening of the banks' standalone financial profiles.

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

The economy is subject to a strong rebound of 7% GDP growth in 2021.

The absorption fell 57% on-quarter and 51% on-year to 17% during the quarter.