The Vietnamese Government targets its sovereign ratings to reach at least Baa3 (for Moody’s) or BBB- (for S&P and Fitch) by 2030.

Car production at Hyundai Thanh Cong's plant. Photo: Viet Dung

The move is part of a proposal on improving Vietnam’s sovereign rating until 2030 approved by Deputy Prime Minister Le Minh Khai on March 31.

In addition, Vietnam aims to attain an average GDP growth of 7% per year, which would help the country attain a GDP per capita of US$7,500 by 2030, and a total social investment capital of 33-35% of the GDP.

The proposal also sets the goal of effective management of the state budget, for which the budget deficit by 2030 should be around 3% of the GDP; public debt below 60% of the GDP; and Government debt under 50%.

Among measures to realize these targets, the Government expects to promote strong public finance and nurture sustainable revenue sources to improve debt indicators and solidify the fiscal basis.

“The focus is to ensure a healthy fiscal foundation and sustainable budget policy in line with Vietnam’s international commitments and good practices,” it noted, adding the necessity to gradually reduce the budget deficit, public debt, and Government debt.

The Government also stressed the importance of promoting transparency in fiscal policy, as well as the consistency between the medium-term public investment plan and the five-year national financial plan for debt payment.

“Vietnam would continue to adopt good practices in risk management of Government’s debt portfolio for sustainable finance security,” said the proposal.

Meanwhile, the Government also acknowledges the necessity to improve the quality of the banking and public sectors to reduce risks in debt management.

This includes greater efforts in dealing with bad debts and restructuring the banking sector for higher efficiency.

The Government calls for the finalization of a legal framework on credit provision, so as for loans to be focused on priorities fields and prevent the capital from flowing into high-risk ones.

All Government debts need to be paid on time; pushing for state firms to restructure in the post-privatization period; improving transparency in the operation of banks and enterprises for financial security.