The agency said in the report that it estimated the real bad debt ratio in the Vietnamese banking system to be at least 15% of total outstanding loans, much higher than the 4.7% rate the central bank recorded as of October 2013.
Medium-term economic prospects and the sovereign's credit profile remain weighed down by the slow pace of asset restructuring in the banking sector and sluggish reforms of State-owned enterprises (SOEs)
The mountain of bad debt choking the national banking system may not simply vanish just by a swing of a magic wand, i.e the recent creation of state-run Vietnam Asset Management Co