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.

A tightened fiscal policy and an effective control of state budget ultilisation have facilitated Vietnam in managing its public debt.

The Ministry of Industry and Trade has transferred the jurisdiction over State capital at 11 out of 12 loss-making megaprojects to the Commission for the Management of State Capital at Enterprises.

 VietNamNet Bridge – Pham The Anh, from the National Economics University’s Faculty of Economics, speaks to Tuổi trẻ (Youth) newspaper about the role of the unobserved economy in the national economy.

 VietNamNet Bridge – Dinh Tien Dung, Minister of Finance, talks to Thời báo Kinh tế (Việt Nam Economic Times) about Vietnam’s plan to pay back its foreign debts in 2019.

 VietNamNet Bridge – For many years, Vietnam’s Government has been acting as a guarantor for a lot of investment projects.

Heavy reliance on FDI and high national debts are the two biggest concerns for Vietnam’s economy, experts say.

VietNamNet Bridge - Vietnam is step by step shifting from relying on foreign debt to seeking domestic capital sources.

Analysts say Vietnam is facing dual difficulties: it has to prepare for the period when ODA (official development capital) capital will decrease, and must also bear pressure as 50 percent of domestic debts will be due in three years.