Fitch analysts were upbeat about continued strong economic growth in Vietnam, which makes near-term stress unlikely and underpins their stable outlook for the banking sector.

The rising vehicle imports are posing huge competitive pressure on domestically-produced vehicles.

A plan to allow large Vietnamese State-owned commercial banks to pay dividends in shares or retain dividends would help them accumulate capital and meet regulatory minimum capital thresholds, Fitch Ratings said.

VietNamNet Bridge - While banks in other countries are following standards of Basel III, Vietnam has only two banks expected to be recognized as meeting Basel II standards in the time to come.

 Fitch upgrades Vietnam’s credit rating on improved macrostability; Word Bank says will fund IT application in agriculture; Bike market gets more hectic; Phan Thiet golf course removed; Sai Gon Hi-tech Park attracts more investment