The government continued to grapple with banking sector problems.
Banks reported in October 2012 that NPLs were about 4.8% of total loans,
but based on closer surveillance of the banking system the ce...
estimated that the ratio of bad loans was 8.8% at mid-year. It trimmed that estimate to 6.0% in February 2013. Independent analysts estimate that
NPLs could be in double digits using international accounting standards
(Figure 3.31.8). NPLs have proliferated because of rapid growth in lending
over several years followed by the squeeze on credit in 2011, the downturn
in the economy and property market, and poor performances by some
highly leveraged state-owned enterprises (SOEs).
NPLs = nonperforming loans
State Bank of Viet Nam; Fitch Ratings
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