Vietnam’s public debt decreases significantly | Company

Illustrative image (Photo: VNA)

Hanoi (VNA) – Vietnam’s public debt over the 2017-2021 period has decreased significantly, from 61.4% of its GDP to 43.1%, according to the latest information published by the Ministry of Finance.

Public debt, publicly guaranteed debt and local government debt also declined. More specifically, public debt, publicly guaranteed debt and government debt fell from 51.7%, 9.1% and 1.1% of GDP in 2017 to 39.1%, 3.8% and 0.6% in 2021, respectively.

In addition, the country’s external debt has also decreased to 38.4% of GDP at the end of 2021 from 49% in 2017.

In 2021, the country’s external debt repayment obligation over total exports last year was 6.2%, while the government’s debt repayment obligation relative to state budget revenue was about 21.8%.

Notably, the external debt has decreased while the internal debt has increased. At the end of 2021, the external debt was around 1.075 quadrillion VND (45.9 billion USD), while the internal debt reached more than 2.2 quadrillion VND, or 67.2% of the outstanding public debt.

The Ministry of Finance report showed that by 2021, VietnamJapan’s largest bilateral creditor was Japan with over VND316 trillion, followed by the Republic of Korea (VND32 trillion), France (VND30 trillion) and Germany (14 000 billion VND).

Meanwhile, the World Bank was Vietnam’s largest multilateral lender with over VND380 trillion, followed by the Asian Development Bank with VND188 trillion.

In April, Deputy Prime Minister Le Minh Khai signed a decision approving the public debt until 2030, which sets an objective of maintaining less than 60% of GDP and a public debt not exceeding 50% of GDP in 2030./.



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