Vietnam set to keep public debt under control

Vietnam is set to keep its public debt under control this year at 43.7 percent of GDP, against the cap of 60 percent.

This amounts to around VND3,700 trillion ($162.58 billion), according to a government report recently submitted to the National Assembly.

Last year, public debt was 55.3 percent against a threshold of 65 percent.

The government is set to pay VND365.93 trillion in debt this year. It said debt duties so far have been paid fully and on time.

But the complicated Covid-19 situation is set to cause challenges to achieve growth targets this year.

GDP expanded by only 1.42 percent in the first nine months, while a lower-than-expected growth rate for the year could cause a negative impact on budget overspending and public debt safety indicators.

Issues in negotiation, signing and disbursement of Official Development Assistance loans due to Covid-19 and other knots in policies and differences between domestic and foreign administrative procedures are set to put more burden on mobilizing money domestically.