Vietnam is expected to pay more than $52B of public debt in three years

Vietnam’s banknotes. Its public debt in three years is nearly VND1,200 trillion

The debt repayment obligation of the Government of Vietnam in the period of 2022-2024 is expected to be nearly VND1,200 trillion ($52.17 billion). That is the content of the report of the Ministry of Finance to the Prime Minister on the three-year public debt management program for the period 2022-2024 and the plan to borrow and repay public debt in 2022, which was announced by the state-controlled media on March 29.

Accordingly, the Ministry of Finance said that the Government’s debt repayment obligation in three years is expected to be nearly VND1,200 trillion, of which direct debit payment is more than VND1,000 trillion and on-lending debt repayment is 145.5 trillion.

According to the public debt management program, the Ministry of Finance believes that with a maximum increase in the State budget deficit of VND240 trillion in the two years 2022 and 2023, the Government’s task of mobilizing loans for the period 2020-2024 will be more than VND2,000 trillion.

In which, borrowing to offset the central budget deficit is about VND1,300 trillion; borrowing to repay the Government’s principal is about VND612 trillion; loans to provincial-level People’s Committees, public non-business units, and enterprises from ODA loans and foreign preferential loans are about VND117 trillion.

The Ministry of Finance also said that it is expected that the total debt repayment of the Government in the period of 2022-2024 is about VND1,190 trillion, of which direct debt repayment is about VND1,040 trillion and repaying loans is about VND146 trillion.

Particularly in 2022, the Ministry of Finance expects that the Government’s direct debit payment target compared to state budget revenue will be about 22-23%, within the 25% ceiling approved by the country’s highest legislative body National Assembly.

Translated by from RFA:

Kasse animation 7.8.2023