HCMC – Vietnam’s public debt is expected to reach VND4-4.1 quadrillion by the end of this year, equivalent to 36-37% of GDP, according to a Government report. This figure is way below the 60% ceiling set by the National Assembly (NA).
The report, signed by Deputy Prime Minister and Finance Minister Ho Duc Phoc, emphasized the country’s less reliance on foreign borrowings. Government debt is forecasted to reach 33-34% of GDP, while foreign debt will account for 32-33%, both comfortably within the NA’s 50% limit.
Repayments for foreign loans are estimated at 8-9% of export revenue, well below the 25% limit approved by the NA.
The Government also noted that 76% of its debt is sourced domestically, primarily through bond issues. Of these, 62.5% are held by insurance companies, Vietnam Social Security, and investment funds, while commercial banks, securities firms, and other investors hold the remainder.
Foreign creditors are primarily multilateral and bilateral partners, including the World Bank, the Asian Development Bank, Japan, and South Korea.
For 2024, the Government plans to borrow VND670.7 trillion, with 95% coming from domestic sources. The majority will be raised through G-bonds with an 11-year maturity and an average coupon rate of 3%.
