HANOI – Deputy Prime Minister Ho Duc Phoc has signed a decision approving a massive borrowing plan of up to VND969,796 billion (US$37.3 billion) for 2026.
Decision No. 352/QD-TTg aims to secure national resources for development, ensure full debt repayment to maintain sovereign credit ratings and optimize the country’s debt portfolio.
According to the decision, the Government plans to borrow a maximum of VND959,705 billion for central budget balancing. This total includes up to VND583,700 billion designated for budget deficit financing and no more than VND376,005 billion for principal repayment.
The remainder, about VND10,000 billion, will be mobilized for on-lending purposes. These funds will be raised through a flexible combination of financial instruments, including the issuance of Government bonds, official development assistance (ODA), foreign concessional loans, Government international bonds and other legal financial sources.
Meanwhile, the Government’s total repayments are estimated at VND534,739 billion for the year. This figure comprises a maximum of VND493,405 billion in direct debt service by the Government, while the remaining VND41,334 billion is allocated for the repayment of on-lending projects.
For the private sector, the ceiling for non-government guaranteed foreign commercial loans (self-borrowing and self-repayment) is set at over US$6.12 billion. Local governments are also permitted to borrow up to VND26,079 billion to fund regional infrastructure.
The prime minister has instructed the Ministry of Finance and relevant agencies to strictly monitor budget deficits and debt thresholds. A priority is placed on “game-changing” public investment projects while expanding the revenue base and utilizing budget surpluses to accelerate debt settlement. This comprehensive fiscal framework ensures that Vietnam is within safe debt limits and warning thresholds for the 2026–2030 period.
