Latest News about public debt
In the annual budget estimate submitted to the National Assembly, the Government always sets an increase in Vietnam's public debt payment obligations compared to the previous year.
In the 2019 audit report on state budget finalization, the State Audit noted that outstanding debts in capital construction in localities are still high.
Effective usage of the state budget has helped Vietnam succeed in bringing public debt under control since 2016, ensuring national financial security.
Vietnam has had outstanding economic development in recent decades, even through the pandemic so far.
Amid massive difficulties hitting domestic production, Vietnam has continued bringing public debt under its control, ensuring national financial security.
“As taut as a violin string" was the phrase used to describe the state of the budget and public debt. After five years of applying flexible solutions, the situation has now become different.
Because of over-expenditures, the public debts in 2020 are estimated at 56.8-57.4 percent of GDP and the government’s debt 50.8-51.4 percent of GDP, within the safety line set by the National Assembly.
Vietnam has continued to bring public debt under its control, thus ensuring financial security for the country.
As the holder of the keys of the national treasury, Finance Minister Dinh Tien Dung is facing great pressure.
The public debt to GDP ratio has been controlled well and has decreased in recent years. But the public debt repayment to budget revenue ratio has steadily increased because of many due debts.
The government’s report on public debt in 2020 and estimates in 2021 show remarkable figures about the national debt.
The Government’s direct debt payment obligations may reach the permissible ceiling of 25% of the 2020 State budget collections and are expected to stand at over 25% of the State budget collections in 2021,
The government is planning to raise the country’s public debt in an aim to spur on the economy’s aggregate demand, creating opportunities for international organisations to offer loans.
A spike in the amount of bad loans sitting in banks’ books has triggered Vietnamese authorities to seek new paths to recovery,
In spite of a dent in state budget revenue and a rise in spending this year causing a big fiscal deficit, the government will be able to retain the country’s public debt situation, ensuring national financial security.
The ratio of public debt to GDP is not too high, but the pressure of debt repayment in both VND and foreign currencies will increase in 2020-2021.
The National Assembly (NA) has issued a resolution that requires the investor of the proposed Long Thanh International Airport to use its own funds instead of money from the Government.
Many economic targets set for 2020 are lower in comparison with real implemented levels.