“Therefore, the delayed payment does not have an immediate impact on therating,” the rating agency noted in a report released on October 31.

In the latest rating on Vietnam, Fitch said the country's economic expansionhad been driven by strong foreign investment and steady export growth.

Exports as a share of Vietnamese GDP rose from 2011-18. Vietnam's currentaccount surpluses helped build external buffers and its external liquidityratio was well above the 'BB' category median, although funding costs wouldrise over time as Vietnam moves from concessional to market funding.

GDP growth remained strong in the first nine months of 2019 at 7 percentyear-on-year and a similar annual growth rate in the last quarter would keep Vietnamas one of the fastest-growing economies in APAC and in the 'BB' rating categoryglobally.

Vietnam appears to be benefiting from production shifts resulting from US-Chinatrade tensions, although large-scale relocation of manufacturing to Vietnamwill take time, and the country's high degree of trade openness means it mayfeel effects from the trade war, according to Fitch.

The revision of Fitch’s outlook on Vietnam to 'Positive' in May reflectedimproving economic management, current account surpluses, falling governmentdebt, high growth and stable inflation./.VNA