Corporate loans make up nearly 50% of Vietnam’s foreign debt
Most of such loans are from foreign invested companies, especially large-scale FDI companies, accounting for 76% of total foreign debt incurred by enterprises in Vietnam.
Corporate loans made up 48.4% of Vietnam’s foreign debt in 2018, significantly higher than the rate of 25.6% in 2011 and 40.4% in 2016, according to Deputy Prime Minister Vuong Dinh Hue.
Illustrative photo.
|
On the contrary, external debt incurred by the government is fast declining, Hue noted.
Meanwhile, the ratio of repayment to trade and service turnover was estimated at 25%, meeting international regulations and requirements.
An increase in foreign debt has met capital needs for socio-economic development and higher growth rate, but also impacts the repayment capability of the country, Hue added.
To ensure the safety limit of public and foreign debts, as well as the stability of the macro-economy, Hue requested government agencies to tighten debt management in compliance with the current regulation.
Additionally, Hue expected the Ministry of Planning and Investment to make a comprehensive assessment on foreign investment, especially large-scale FDI projects and the impact of foreign debts on the country’s economic growth target.
As of the end of 2017, Vietnam’s foreign debt to GDP reached 48.9%, fast approaching the threshold of 50% set by the National Assembly. A year later, this figure declined to 46%, of which debts of the government accounted for 19.3% of GDP, government-guaranteed debt 4.4% and corporate debt 22.3%.
In 2018, the Vietnamese government set the limit for government-guaranteed debt of US$700 million, however, no project has been qualified for the loan as the government shifts its priority to lending from domestic source with better interest rate.
14:39, 2025/01/04
Vietnam stock market set to accelerate in 2025: Experts
Stable macroeconomic fundamentals, ongoing institutional reforms, and favorable monetary policies will be positive for corporate earnings.
16:31, 2025/01/02
Vietnam stock market aims for emerging status by 2025: Finance minister
By the end of 2024, the benchmark VN-Index reached 1,266.78 points, up 12.11% from 2023.
15:33, 2025/01/02
Vietnam set to extend VAT cut for six months
This measure is expected to accelerate the recovery of production and business activities, which will ultimately benefit the state budget and the economy as a whole.
21:29, 2024/12/31
Vietnam’s credit growth projected to expand by 16% in 2025
Growth must put operational safety first, and channel credit to productive business sectors, priority areas, and growth-driving industries.
22:02, 2024/12/17
Regional, international financial centers mean boosters to Vietnamese economy: Deputy PM
Ho Chi Minh City envisions its financial center encompassing the money market, banking system, capital market, and derivatives market.
15:44, 2024/11/14
IFC sets record with US$1.6 in climate financing to support Vietnam’s green transition
The new commitments aim to bolster Vietnam's shift towards a low-carbon economy while enhancing private-sector resilience and competitiveness.
- Vietnam's credit growth up 10% in 10 months
- Building Hanoi's smart city with smart banking
- Vietnam stock market clears major legal hurdle to potential upgrade
- Cashless parking in Hanoi: Good model fuels smart transport
- Banking sector dominates Vietnam’s corporate bond market
- Prime Minister expects lending to grow by 15% this year