Under Vietnam’s three-year public debt management program for 2025–2027, the government is authorized to borrow up to VND 2.2 quadrillion (approximately USD 92.3 billion) and repay more than VND 1.3 quadrillion (roughly USD 54.6 billion), including over VND 1.2 quadrillion (USD 50.4 billion) in direct government obligations.

Deputy Prime Minister Ho Duc Phoc has signed Decision No. 1940/QD-TTg approving the 2025 public borrowing and repayment plan along with the three-year public debt management program.

In 2025 alone, the government plans to borrow a maximum of VND 815.2 trillion (around USD 34.2 billion), with VND 804.2 trillion (USD 33.7 billion) allocated to balancing the central budget. This includes a maximum of VND 443.1 trillion (USD 18.6 billion) to cover the budget deficit and VND 361.1 trillion (USD 15.1 billion) for principal repayments. An additional VND 11 trillion (USD 460 million) is earmarked for on-lending.

These funds will be raised flexibly through government bond issuances, official development assistance (ODA), concessional loans from foreign partners, and other lawful financial sources if needed.

The government’s total debt repayments for 2025 are capped at VND 506.9 trillion (USD 21.3 billion), with VND 468.5 trillion (USD 19.6 billion) for direct obligations and VND 38.4 trillion (USD 1.6 billion) for loans relended to other projects.

For government-guaranteed loans, the decision stipulates that Vietnam Development Bank will not issue domestic bonds under state guarantee in 2025. However, the Social Policy Bank may issue up to VND 10.5 trillion (USD 440 million) worth of such bonds.

Local authorities are projected to borrow VND 31.8 trillion (USD 1.33 billion) in 2025. Debt service payments include VND 3.3 trillion (USD 138 million) in principal and VND 3.1 trillion (USD 130 million) in interest and fees.

Enterprises taking out foreign commercial loans without government guarantees may borrow up to USD 5.5 billion in medium- and long-term debt under self-borrow and self-pay arrangements. Short-term debt is projected to increase 18–20% compared to end-2024.

If actual borrowing or repayment needs exceed the approved limits, the Ministry of Finance will seek the Prime Minister’s approval for adjustments.

Under the 2025–2027 public debt management program, the total government borrowing limit remains at VND 2.2 quadrillion (USD 92.3 billion). Of this, more than VND 2.18 quadrillion (USD 91.4 billion) is intended for central budget purposes, while around VND 35 trillion (USD 1.47 billion) will be used for on-lending from ODA and concessional loans.

Repayments for the same period are capped at over VND 1.3 quadrillion (USD 54.6 billion), including VND 1.2 quadrillion (USD 50.4 billion) in direct repayments and about VND 120 trillion (USD 5 billion) for relending obligations.

Regarding government guarantees for bonds issued by two policy banks, the cap for Vietnam Development Bank during 2025–2027 is VND 14.2 trillion (USD 595 million).

For the Social Policy Bank, the 2026–2027 guarantee levels will follow the 2025 principle: equal to the amount of maturing bonds minus recovered funds from the Economic Recovery and Development Program. Specific guarantee amounts will depend on repayment progress and bond market conditions.

The decision requires the Ministry of Finance to closely monitor the state and local budget deficits, local debt limits, and the ratio of debt servicing to revenue. It must also explore new borrowing methods.

The ministry is tasked with managing the volume of government bond issuance based on funding needs and market capacity, ensuring favorable interest rates. Bonds must be diversified and aligned with the average maturity goals set by the National Assembly. The ministry will also oversee the 2025 debt repayment schedule and ensure timely, full payments.

Meanwhile, the State Bank of Vietnam is responsible for tightly managing the foreign debt of privately borrowing enterprises not backed by the government. It will also oversee external debt in the private sector to ensure it remains within approved limits.

Nguyen Le