Aug 11 - Toxic debts in Vietnamese banks accounted for 2.58 percent of outstanding loans at the end of June, declining from 2.78 percent in the previous month, the central bank said on Thursday.

The economy posted a credit growth of 8.54 percent as of July 29 against the end of 2015, the State Bank of Vietnam said.

Vietnam has projected an annual credit growth of 18-20 percent this year, after loans expanded 17.26 percent in 2015.