Vietnam’s public debt hits three-year low at 58.4% of GDP
The National Assembly`s Finance-Budget Committee attributed the lower debt public ratio to government’s tightened state budget overspending and ongoing debt restructuring efforts that helped ensure the state’s repayment capacity and relieve pressure on public debt compared to previous periods.
Vietnam’s public debt hit the lowest since 2015 at 58.4% of the GDP as of the end of 2018, much lower than the projection of 63.9% made by the Ministry of Planning and Investment (MPI) last August, according to the Ministry of Finance (MoF).
Illustrative photo.
|
All the figures are within the limit and lower than the national financial plan in the 2016 – 2020 period, stated the MoF in its report to the National Assembly (NA).
The NA’s Finance-Budget Committee attributed the lower debt public ratio to government’s tightened state budget overspending and ongoing debt restructuring efforts that helped ensure the state’s repayment capacity and relieve pressure on public debt compared to previous periods.
In 2018, the MoF reduced the amount of outstanding government bonds amid growing volatility of monetary and foreign exchange markets.
Additionally, the average maturity of the government bonds was extended to 12.7 years, while more than 90% of the government bonds have over 10 years in maturity.
The MoF also stressed the ODA would not be used for inefficient projects and in fields where Vietnam has mastered the technologies.
Vietnam’s state budget overspending down VND12.5 trillion (US$534.4 million) against the MoF's previous report to VND191.5 trillion (US$8.18 billion) as of the end of 2018, equivalent to 3.46% of the GDP - lower than the NA’s estimate of 3.7% of GDP.
Last August, Vietnam's public debt was projected by the MPI to reach VND3,530 trillion (US$152.34 billion) or 63.92% of GDP by the end of 2018, up from the previous rate of 61.3% in 2017.
The ministry's projection for public debt is based on assuming the average economic growth rate of 6.53%, equivalent to nominal GDP of VND5,530 trillion (US$238.54 billion) and inflation rate staying below 4%.
16:49, 2025/01/06
Vietnam GDP expands by 7.09% in 2024
The 2024 growth rate is considered positive amidst global uncertainties and domestic challenges such as natural disasters.
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.
- IFC sets record with US$1.6 in climate financing to support Vietnam’s green transition
- 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