Vietnam's public debt falls sharply

The Department of Debt Management and External Finance - Ministry of Finance has just announced Public Debt Bulletin No. 15 on Vietnam's public debt situation from 2018 to June 2022.

Accordingly, by the end of 2021, the country's foreign debt decreased to only 38.4% of GDP compared to 46% of GDP in 2018. The country's foreign debt repayment obligation compared to total export turnover in 2021 was 6.2%. The government 's debt repayment obligation compared to state budget revenue in 2021 was about 21.8%, with a tendency to increase steadily over the years.

Vietnam's main bilateral creditors as of the first half of 2022 include: Japan lending the Vietnamese Government more than VND 274,000 billion; South Korea lending more than VND 28,000 billion, France lending more than VND 27,000 billion; Germany lending more than VND 12,000 billion...

The Government's outstanding debt as of the first half of 2022 is more than VND 3,219 trillion. In terms of structure, the Government's current borrowing sources mostly come from domestic channels with more than VND 2,221 trillion, accounting for nearly 71%.

Among Vietnam's multilateral creditors, the World Bank (WB) has lent the Vietnamese government the most, about VND350 trillion (as of the first half of 2022). The Asian Development Bank (ADB) has lent Vietnam more than VND180 trillion and other organizations have lent Vietnam about VND12 trillion.

Regarding the country's foreign debt structure, the outstanding debt in the first half of 2022 was VND 3,285 trillion, exceeding the total outstanding debt of the whole year of 2021 (VND 3,226 trillion). Of which, foreign debt of enterprises accounts for nearly 70% of total debt (VND 2,287 trillion). The capital withdrawal rate in the period tends to decrease over the years and decreases sharply by the first half of 2022. At the same time, the debt repayment rate in the period tends to grow steadily over the years, showing that Vietnam is doing very well in handling debts and is less dependent on foreign debt.

Total government-guaranteed debt has tended to decrease over the years. The ratio of foreign debt and domestic debt guaranteed by the government in Vietnam is quite similar and tends to decrease over the years, from more than VND 437,000 billion in 2018 to only more than VND 320,000 billion in 2021 and about VND 299,000 billion by the first half of 2022.

Meanwhile, local government debt shows signs of increasing again. As of June 2022, the total outstanding debt of local governments reached VND51,243 trillion, surpassing the total outstanding debt in 2021. However, the total amount of loans in the period tended to decrease sharply from the beginning of 2020 to June 2022. In the first half of 2022, the amount of loans in the period of local governments was only VND1,311 billion, accounting for 2% of total loans.

Cam Tu (VOV.VN)

Useful
Emotion
Creative
Unique
Wrath