Vietnam banks to trim bad debts by year end

A man on a bicycle rides past the State Bank of Vietnam in Hanoi. The State Bank of Vietnam, the central bank, projected bad debts would amount to between 3.7 percent and 4.2 percent of total loans at year end. Photo credit: Bloomberg

Bad debts in Vietnam's troubled banking system could fall sharply by year-end to 2.5 to 2.7 percent of total loans thanks to debt restructuring and tighter supervision, Prime Minister Nguyen Tan Dung said on Wednesday.