Vietnam set to keep public debt under control
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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.
Questions & Answers
Q.What is the projected public debt for Vietnam this year, and how does it compare to the government's cap?
What is the projected public debt for Vietnam this year, and how does it compare to the government's cap?
Vietnam's public debt is projected to be 43.7 percent of GDP this year, amounting to around VND3,700 trillion ($162.58 billion). This figure is well below the government's cap of 60 percent of GDP.
Q.What challenges might prevent Vietnam from achieving its growth targets this year?
What challenges might prevent Vietnam from achieving its growth targets this year?
The complicated Covid-19 situation is expected to cause challenges to achieve growth targets. A lower-than-expected growth rate could negatively impact budget overspending and public debt safety indicators, according to the government.
Q.What issues are making it harder for Vietnam to raise money domestically?
What issues are making it harder for Vietnam to raise money domestically?
Issues in the negotiation, signing, and disbursement of Official Development Assistance loans due to Covid-19 are creating difficulties. Other policy knots and differences between domestic and foreign administrative procedures are also adding burdens.
Q.How much debt is the Vietnamese government planning to pay off this year?
How much debt is the Vietnamese government planning to pay off this year?
The Vietnamese government is set to pay VND365.93 trillion in debt this year. The article states that debt duties so far have been paid fully and on time.
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