The National Assembly has approved a resolution on 2024 State budget revenue, in which Government borrowings will be capped at VND690.5 trillion, up 6% over this year.

The National Finance and Budget Committee has predicted that public debts in 2024 will amount to 39-40 percent of GDP, government debts 37-38 percent and sovereign foreign debts 38-39 percent.

The government has estimated that it would need to borrow VND1.25 quadrillion in the next two years, of which VND750 trillion would be used to cover the central budget over-expenditures, and VND465.8 trillion to pay due principal.

Vietnam’s plan for borrowing and paying public debt has been revealed, and the budget landscape finalised for this year, with public debt set to stay within the permissible limit.

Vietnam’s public debt declined dramatically to 43.1 percent of GDP in 2021 from 58.3 percent in 2018, according to the Ministry of Finance.

As of late October, the Vietnamese Government paid back VND 240 trillion (US$ 10.5 billion) in loans it owed domestically and internationally, according to the Ministry of Finance.

Despite big spending, Vietnam will ensure its financial landscape is healthy with close control of public debt next year.

The government has submitted a report to the National Assembly on public debt in 2022 and predictions for 2023.

The Government plans to borrow a total of VND644 trillion next year, around VND27 trillion higher than this year, according to a report to the National Assembly on public debt in 2022 and 2023.

Vietnam is witnessing a strong reduction in its public debt following its close control of the issue, with the government exercising a stringent policy on increasing revenues and reducing expenditures.

Vietnam’s public debt in the 2017-2021 period decreased dramatically from 61.4% of its GDP to 43.1%, according to the latest information released by the Ministry of Finance.

National debt, or foreign debt, when reaching an excessive level, often leads to an economic crisis.

Vietnam is targeting to control public debt below 60 per cent of gross domestic product (GDP) by 2030 to ensure debt safety and national financial security.

Viet Nam managed to control public debt within a safe level with gradually slowing year-on-year increases. However, according to the Ministry of Finance, the economy was severely hit by the COVID-19 pandemic in the past three years.

Vietnam’s public debt, including the central Government’s debt, Government-guaranteed loans and loans of provinces, stood at over VND3,500 trillion as of June last year, according to the Ministry of Finance.

The Ministry of Finance (MOF) has submitted a statement to the Prime Minister about the public debt management program for 2022-2024, and the plan to borrow and pay public debts in 2022.

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.

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.

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