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The revision in Vietinbank's Outlook follows Fitch's affirmation of Vietnam's sovereign rating at 'BB', and revision in the Outlook to Positive from Stable on 1 April 2021.

Fitch Revises Outlook on Vietinbank to Positive; Affirms IDR at 'BB-'
Fitch Ratings has revised the Outlook on Vietnam Joint Stock Commercial Bank for Industry and Trade's (Vietinbank) Long-Term Issuer Default Rating (IDR) to Positive from Stable. The bank's IDR was affirmed at 'BB-'. The bank's Viability Rating was last reviewed on 15 January 2021 and is not part of this review.
The revision in Vietinbank's Outlook follows Fitch's affirmation of Vietnam's sovereign rating at 'BB', and revision in the Outlook to Positive from Stable on 1 April 2021. 
Vietinbank's IDRs are driven by Fitch’s expectation of a moderate likelihood of state support being extended, if necessary, and this is reflected in the bank's Support Rating of '3' and Support Rating Floor (SRF) of 'BB-', which drive its Long-Term IDR. The state's propensity to extend support to Vietinbank is underpinned by the bank's high systemic importance, with about 10% share of system deposits, as well as its majority state ownership (65%) and quasi-policy role as one of the four state-owned commercial banks.
The SRF remains one notch below the sovereign rating as there is some uncertainty about the timeliness of support due to the large size of Vietnam's banking system relative to GDP and the magnitude of financial support that would potentially be needed.
The revision in Vietinbank's Outlook reflects Fitch's view of the sovereign's improving ability to provide extraordinary support and mirrors the revision in the Outlook on the sovereign rating.
The Long-Term IDR and SRF are sensitive to movements in the sovereign's ratings. An upgrade of the sovereign is likely to result in a revision upwards of the SRF and, in turn, an upgrade of the Long-Term IDR, provided the state's propensity to provide support to Vietinbank is maintained.
The sovereign's ability to provide timely support to the banking system in general, and the most systemically important banks (including Vietinbank) in particular, would also be enhanced if, in our view, the potential contingent obligation to support the banks is manageable at any given sovereign rating level. Such a reassessment may result in an equalisation of the bank's SRF and Long-Term IDR with the sovereign rating.
The Support Rating will not be upgraded unless Vietinbank's SRF is revised upwards by two or more notches.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
Negative rating actions on the sovereign rating or its Outlook will lead to corresponding rating actions on Vietinbank. Any perceived weakening of the sovereign's propensity to provide support to Vietinbank, such as divestment of its shareholding to less than 50%, or the government viewing the bank as not systemically important, can also lead to a revision downwards of its SRF and, in turn, a downgrade of its IDR. Fitch considers these to be unlikely in the near term. The Support Rating will not be downgraded unless Vietinbank's SRF is revised downwards by two or more notches.
International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. 
Vietinbank has an ESG Relevance Score of '4' for Governance Structure due to the significant influence of the state in the bank's strategic objectives and a potential lack of effective independent board oversight that could weaken the protection of creditor and stakeholder rights. This has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. The bank's strong state linkages are also factored into our assessment of the likelihood of state support, which drives its SRF and Long-Term IDR, including the current revision in the IDR Outlook.
Vietinbank also has an ESG Relevance Score of '4' for Financial Transparency due to the quality and accuracy of financial reporting standards in Vietnam, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Notwithstanding improvements made in recent years, including the bank's implementation of Basel II and redemption of its outstanding Vietnam Asset Management Company bonds, Fitch believes loan classification standards among Vietnamese banks in general are not consistently applied, leading to systematic understating of non-performing assets. A lack of transparency can increase uncertainty and investment risks for investors and weigh on its ratings.
Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity.

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