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Vietnam’s public debt totals VND3,500 trillion as of June 2021

By Van Phong

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HCMC – Vietnam’s public debt, including the central Government’s debt, Government-guaranteed loans and loans of provinces, stood at over VND3,500 trillion as of June last year, according to the Ministry of Finance.

The Department of Debt Management and External Finance under the Ministry of Finance has publicized the country’s public debt as of June 2021.

The Government’s debt was over VND3,100 trillion, including VND1,100 trillion borrowed from foreign sources. Compared with 2017, the Government’s debt rose by more than VND533 trillion.

Vietnam’s largest bilateral lender from early 2019 to June 2021 was Japan with over VND333 trillion, followed by South Korea with some VND33 trillion, France with VND32 trillion and Germany with VND14 trillion.

Meanwhile, the country’s largest multilateral lender in the period was the World Bank, with loans worth around VND382 trillion. The Asian Development Bank came in second with loans valued at over VND193 trillion.

Vietnam also borrowed VND26 trillion from private lenders in the period.

In addition, loans with guarantees from the Government were more than VND338 trillion, VND117 trillion lower than in 2017, as the Government has limited its guarantees over the past few years.

Loans taken by provincial-level authorities totaled VND46 trillion, down by some VND11 trillion over 2017.

Earlier, the Ministry of Finance sent the Government a statement with a maximum State budget overspending of VND140 trillion in 2022 and 2023 and a maximum of over VND2,000 trillion in the Government’s loans in the 2020-2024 period.

The ministry estimated the public debt to be equal to 46%-47% of the country’s gross domestic product (GDP), the Government’s debt, 44%-45%, and the Government’s direct debt payments, 24%-25%, by 2024.

As the Government’s direct debt payments may exceed 25% of GDP as required by the National Assembly, the Ministry of Finance pledged to keep the average under 25% in the 2021-2025 period.

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