The agency said Vietnam is one of only four economies in the Asia-Pacific region expected to see positive economic growth in 2020. Vietnam’s GDP is expected to grow 0.4% in the second quarter, despite the impact of the COVID-19 pandemic on tourism and exports.

Vietnam will benefit from low production costs and the EU-Vietnam Free Trade Agreement (EVFTA) which will take effect in August, said Fitch. The agency predicts that Vietnam’s expansion will accelerate next year, as external demand begins to recover.