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Thursday, April 25, 2024

Vietnam’s 2023 public debt at 37% of GDP

The Saigon Times

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HCMC – Vietnam’s public debt in 2023 amounted to VND3.8 quadrillion, equivalent to 37% of gross domestic product (GDP), according to the Ministry of Finance.

This figure is way below the 60% cap targeted by the National Assembly (NA) and is VND200 trillion lower than the ministry’s October estimate.

The central Government’s debt remains comfortably below the 50% limit, at around 34% of GDP. Nearly three-thirds of this amount is domestic debt, mainly in the form of long-term G-bonds.

Despite global economic challenges, Vietnam’s fiscal policy last year proved successful, said Finance Minister Ho Duc Phoc.

The projected budget deficit last year is expected below 4%, totaling US$17.2 billion (or VND414,000 trillion), below the NA’s limit of 4.42%.

State budget revenue projections indicate a surplus, exceeding the initial estimate by about 5%. Taking tax exemptions and reductions into account, the surplus might reach 9-10% compared to the NA’s assigned target. Both central and local budgets outperformed their forecasts.

As part of a strategic move to boost economic recovery, Vietnam has increased investments in infrastructure, allocating over VND760 trillion, which represents 35% of the total state budget for public investment and is 1.5 times higher than in 2022.

Looking ahead to 2024, the Finance Ministry foresees favorable conditions and challenges. The state budget revenue is expected to be VND1.7 quadrillion, with projected expenditures of VND2.1 quadrillion.

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