The Vietnamese government targets the fiscal deficit to stay below 4% of the GDP in 2020, and down to around 3% in 2030, eventually maintaining a balanced budget in long-term.

Illustrative photo.

The objective is stated in the government’s Resolution No.30/NQ-CP which provides a national action plan towards greater efficiency in managing and utilizing different types of resources within the economy.

Under the resolution, by 2030, Vietnam's public debt target is set to at below 60% of GDP, government-guaranteed debt will not exceed 50% of GDP and foreign debts will remain less than 45% of GDP.

By 2025, Vietnam would complete upgrading the socio-economic infrastructure, including major public work projects, in turn laying foundation for stronger economic growth and greater linkages among provinces/cities.

Additionally, the ratio of workers in the agro-forestry-fishery field would be less than 33% of the whole workforce by 2025. According to the resolution, it would help address the demand – supply mismatch of the country’s labor market.

The Ministry of Finance (MoF) would continue to restructure the state budget and public debt management to ensure national financial security and sustainability, which are among Vietnam’s pillars of economic restructuring efforts during its growth model transition and international integration process.

Another priority is to focus on the development of domestic capital market and the government bond market, a key step to attract long-term investors to the economy.

The government requested the MoF to speed up the revision process of the Insurance Business Law in 2020, focusing on clarifying responsibilities of insurers during their operations, risks and human resources management.

Vietnam’s public debt continued its downtrend from 63.7% of GDP at the end of 2016 to 56.1% in 2019, while the fiscal deficit stood at below 3.4% of GDP, lower than the year’s estimated of 3.7%, according to a government report.