Why it will be hard to reform Vietnam's banking sector

Find out what the barriers are.

According to Standard & Poor's, the government appears to have the ability and political commitment to maintain a stable economic environment. However, S&P believes it will be considerably harder to deliver SOE and banking sector reforms. 

Here's more from S&P:

The intertwined relationship of SOE management and politicians, lack of administrative capacity, and concerns over possible social consequences present significant barriers to meaningful reform of the large state-owned firms, and we believe progress will be incremental at best.

By contrast, cleaning up the banking sector's bad debt burden may be an easier task. Already, preparations are under way to set up an asset management company that would take non-performing loans off banks' balance sheets.