DOI:

Abstract

The paper analyzes the current situation of the Vietnam?s banking system and figured out four primary difficulties facing it namely high ratio of bad debts, low owner?s equity, unsustainable liquidity, and unfair competition. This fact poses serious problems for Vietnam?s government and the SBV in their effort to restructure the national banking system. The author recommends four groups of solutions to these problems, that is, (i) classifying and restructuring banks, (ii) enhancing the bank?s immunity by means of bank?s owner?s equity, (iii) disposing of bad debts and preventing newly-arising ones; and (iv) creating a healthy environment for banking sector and orienting banking activities towards international standards

Keywords

Restructuring; Banks; Solution.