Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy
Vietnam's public debt forecast to slip to 52.7% of GDP in 2022: Fin Min
Ngoc Thuy 14:58, 2019/10/28
Vietnam’s average GDP growth rate in the 2020 – 2022 period is projected to reach 6.8%, according to the Ministry of Finance (MoF).
Vietnam's public debt is projected to reach 54.3% of GDP by the end of 2020, before sliding further to 53.3% in 2021 and 52.7% in 2022, continuing its declining trend from the estimated 56.1% of GDP as of the end of 2019, according to the Ministry of Finance (MoF). 

Additionally, Vietnam’s average GDP growth rate in the 2020 – 2022 period is projected to reach 6.8%, stated the MoF in its latest report submitted to the National Assembly.
Illustrative photo.
Illustrative photo.
The consumer price index (CPI), a gauge of inflation, is forecast to increase 3 – 3.5%, and trade turnover to expand by 6.5 – 8% annually. 

The forecast was based on the context of global economic uncertainties, in which protectionism and trade tension would continue to cause instability to the world’s business and investment environments as well as trade activities. 

Additionally, geopolitical tensions, border conflicts, among other issues, are projected to have impacts on Vietnam’s economic growth. 

According to the MoF, the 2020 – 2022 period is a transitional period from the five-year social-economic development plan and five-year national financial plan 2016 – 2020 to the ones of the 2021 – 2025 period. 

The MoF targets state budget revenue during the period at VND4,900 trillion (US$210.62 billion), in which the average rate of capital mobilization is projected at 21 – 22% of the GDP and the rate of domestic revenue until 2022 is to account for 84 – 85% of GDP.

Meanwhile, Vietnam’s state budget expenditure in 2020 – 2022 is projected to hit VND5,700 trillion (US$244.98 billion), resulting in a fiscal deficit of 3.44% of GDP in 2020 and 3.5% in 2021 and 2022. 

The MoF also highlighted major risks to Vietnam’s financial plans in the 2020 – 2022 period. 

Firstly, Vietnam’s macro-economic conditions have been improving significantly with greater economic resilience, however, the development remains away from sustainability, due to the high level of economic openness; the structures of social investment capital and trade balance are highly dependent on foreign-invested sector, particularly in a period of global economic environment with strong volatility. 

Secondly, the country faces huge challenges in maintaining high economic growth of over 6.8% annually. In addition to risks concerning FDI attraction and exports, unfavorable factors include natural disasters, and environmental pollution, among others. 

The MoF suggested risks concerning economic growth would pose risks to state budget revenue, due to 70% of state budget revenue is from domestic tax collection and over 16% from trade tarrifs. 

The MoF noted fiscal deficit could widen than the current estimate, due to risks in state budget revenue collection, natural disasters, epidemic, environmental pollution, among others. 
Other news
13:38, 2023/12/05
Vietnam, Cambodia launch QR code payment system
The move is aimed at facilitating cashless payments in both countries.
11:52, 2023/12/05
Hanoi Grand Sale 2023: Over 12,000 promotions worth US$1 billion
Hanoi's retail sales of consumer goods and services reached VND567.5 trillion (US$23.4 billion) in the first 10 months of 2023, up 28.8% year-on-year.
22:09, 2023/12/04
Hanoi’s agriculture aims for sustainable export
Hanoi has achieved exports of agricultural and forestry products worth more than US$1.3 trillion in the first nine months of 2023.
19:33, 2023/12/03
Vietnam emerges as a strategic location for tech giants
Building high-quality data centers is currently one of the key focuses of Vietnam's digital transformation, in line with its strategy to develop a digital economy and a digital nation.
17:29, 2023/12/03
Vietnamese youth trained to raise community awareness of online safety
Vietnam Youth Federation and Google empower youths with digital transformation skills.
15:08, 2023/12/02
Vietnam’s e-commerce market set to hit US$20.5 billion
The Vietnamese e-commerce market has established a supplementary service system to support transactions, marketing, online communication, and delivery services.