S&P Global Ratings classifies the banking sector of Vietnam (BB/Positive/B) in group '9' under its Banking Industry Country Risk Assessment (BICRA). Other countries in group '9' are Argentina, Azerbaijan, Bangladesh, Bolivia, Cambodia, Egypt, Kazakhstan, Kenya, Mongolia, and Turkey (see chart 1). Our bank criteria use our BICRA economic risk and industry risk scores to determine a bank's anchor, the starting point in assigning an issuer credit rating. The anchor for banks operating only in Vietnam is 'b+'. Although banks have resolved legacy stressed assets (created due to rapid credit growth between 2005 and 2011), COVID-19-related restructured loans will require provisioning while capital buffers at several banks remain thin. We believe Vietnam banks' credit risks remain extremely high, reflecting rapid credit
