return icon

Public debt exceeds VND4 quadrillion, VND5 quadrillion threshold near

Public debt is anticipated to increase rapidly in 2022-2024, exceeding the VND4 quadrillion threshold and getting closer to VND5 quadrillion.


Cat Linh - Ha Dong railway project


The Ministry of Finance (MOF) is collecting opinions for the state budget estimates in 2022, which the Government will submit to the NA.

The estimated budget collection in 2021 is VND1.34 quadrillion, while VND1.077 quadrillion has been collected over the first nine months of the year, or 80.2 percent of the estimates, an increase of 9.2 percent over the same period last year.

However, because of the fourth pandemic wave which broke out in late April, the collection has been declining markedly month by month.

MOF predicted that state budget revenue in 2021 would be more than VND1.36 quadrillion, or 1.7 percent higher than estimates and 9.4 percent lower than the real collection in 2020.

The revenue from domestic sources, which make up 80 percent of total revenue, is expected to see a 12.2 percent decrease compared with the real collection in 2020 to VND1.13 quadrillion.

While revenue has fallen, expenditures will be higher than initially estimated. MOF estimated that total spending in 2021 would be VND1.7 quadrillion, or 1.3 percent higher than the VND1.68 quadrillion planned before.

The figures show continued overexpenditures. MOF estimates a state budget over-expenditure of VND343.67 trillion in 2021, or 4 percent of GDP. The ministry wants to curb the over-expenditure at no more than 4 percent of GDP.

As for 2022, MOF predicts revenue of VND1.41 quadrillion for the state budget, an increase of 3.4 percent over the real revenue of 2021.

This estimate has been "carefully calculated" by MOF in the context of the prolonged epidemic, causing supply chain disruptions, lack of human resources, and sharp decline in revenue for businesses.

Regarding expenditures in 2022, the figure is estimated at VND1.78 quadrillion, or 4.5 percent higher than the 2021 estimates.

According to MOF, the overexpenditures for the year would be VND372.9 trillion, of 4 percent of GDP (the same as 2021). The Government’s direct debt repayment obligation is 21-22 percent of total state budget collection. The public debt is predicted to reach 43-44 percent of GDP as of the end of 2022.

MOF warned that Covid-19 will put pressure on state budget balancing in 2022-2024. The total budget collection in 2022-2024 is estimated to reach VND4.65 quadrillion, while the expenditure VND5.8 quadrillion.

The overexpenditures in 2022-2024 would be about 3.8 percent of GDP and public debts 43-44 percent of GDP by 2024. The State would borrow over VND500 trillion each year in 2022-2024. 

Luong Bang

VN reports public debt reaches VND3.7 quadrillion, plans to borrow VND571 billion next year

VN reports public debt reaches VND3.7 quadrillion, plans to borrow VND571 billion next year

The Government’s report says that if the GDP in 2021 is below expectations, this will affect state budget overexpenditures as well as the national public debt and foreign debt safety indexes.

Robust regulations ahead for management of public debt

Robust regulations ahead for management of public debt

Vietnam will launch a revamp of its 2021-2025 budget management strategy, which is expected to ensure national security and control public debt.


Achilles heel in tourism

Vietnam’s tourism industry has made only meager strides in diversifying its products despite years of growth.

The most addictive dish on Ha Giang plateau

Ha Giang attracts tourists not only for its majestic natural landscape and honest ethnic people but also for its bold, regional specialties that cannot be found anywhere else.

Liquidity needs to be ensured: Central bank

The Governor of the State Bank of Vietnam (SBV) sent important messages about monetary policies at a meeting with businesses held by SBV and HCM City People’s Committee late last week.

Firms hesitate to access loans due to weak consumption demand

The State Bank of Vietnam last week cut its policy rates for the third time this year to prop up economic growth.

Banks experience significant increases in non-performing loans

Given the challenging economic environment, the performance of numerous banks is rather bleak, particularly due to the mounting bad debt levels.


Work on Cat Bi Airport’s Terminal T2 to start in Q4

Vietnam should consider announcing the end of COVID-19: NA deputy

At the ongoing fifth session of the 15th National Assembly (NA) held on May 29, Nguyen Lan Hieu of the NA Delegation of Binh Dinh province suggested that the end of COVID-19 should be announced.

Cut on automobile registration fees to facilitate auto industry

The Ministry of Industry and Trade supporting the reduction of automobile registration fees is considered a positive effect to the auto industry in the context of the automobile market facing many difficulties.


Vietnam leaves good impressions at multi-ethnic festival in Czech Republic

Vietnam to build center for search and rescue in Spratly Islands

Deputy Prime Minister Tran Luu Quang has approved a project to improve the capacity of incident and natural disaster response and search and rescue to 2030, with a vision to 2045.

Male model finishes as third runner-up at World Fitness Supermodel

Ngo Hoang Linh, the Vietnamese representative at World Fitness Supermodel 2023, was awarded the third runner-up title during the male pageant’s grand final held on May 27 in Thailand.

Old Vietnamese publications in romanised script on display in Paris

An exhibition showcasing old Vietnamese publications in Chu Quoc ngu (romanised Vietnamese script) is underway in Paris, France.

HCMC police raze black-credit companies with illicit profits of over US$176mln

The Ho Chi Minh City Department of Public Security yesterday prosecuted nine people for usury in civil transactions.

Entertainment and cultural events of the week (May 29-June 4/2023)

Upcoming entertainment and cultural events in Vietnam's major cities on May 29-June 4.

More cooperation needed to develop rare earth industry in Vietnam

The applications for rare-earth element products have developed strongly in recent decades, especially in the field of agriculture in which they are used to create clean, safe, and effective agricultural products.