Under the recently approved public management program for 2022-24, the Government plans to borrow a maximum sum of VND 646.8 trillion (USD 27.5 billion) to cover overspending and debt repayment. - Illustration photo

The figure comprised VND 184,026 billion of domestic loans, VND 57,014 billion of foreign loans. 

The amount of debt obligation accounted for around 15 percent of State budget collection in the first ten months this year. 

The Government's debt payment continues to be fully implemented as committed, within the estimate approved by the competent authority. 

The Department of Debt and External Finance under the Ministry of Finance reported that as of October 26, the Government borrowed US$ 906.1 billion, equivalent to VND 20 trillion, US$ 196 million less than that in the same period last year (or VND 4,556 billion).

New loans must be carefully taken into consideration in terms of economic efficiency to ensure public debt safety, in line with the medium-term public investment plan. 

Vietnam's public debt in 2021 was 43.1 percent of the GDP, lower than the 60 percent ceiling set by the National Assembly.

According to a Ministry of Finance bulletin, Vietnam's public debt has gradually decreased over the past five years, from 61.4 percent in 2017 to 43.1 percent of GDP last year. Against a GDP of US$368 billion in 2021, Vietnam's public debt last year was US$157 billion.

Government debt dropped from 51.7 percent of GDP in 2017 to 39.1 percent in 2021, equivalent to nearly US$144 billion. Government-guaranteed debt decreased from 9.1 percent in 2017 to 3.8 percent in 2021, or nearly US$14 billion.

Source: VGP