Vietnam's banks: credit not capital

Credit growth is picking up again in Vietnam. Is the country on course for another bout of rising NPLs and can it develop better tools to manage the fallout?

Vietnam's banks: credit not capital

What’s in a number

Quite a lot if you are the Vietnamese government intent on achieving 6.7% GDP growth.

It did not manage to hit its target in 2016, but is well on course to do so in 2017, with third quarter growth hitting 7.5%.

The problem is that Vietnam appears to be achieving its ambitions by accelerating credit growth to levels many observers believe is too high.

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