According to a decree signed by Deputy Prime Minister Le Minh Khai to approve the government debt strategy by 2030, the Vietnamese government has set a target of reducing the government debt ceiling to 60% of gross domestic product (GDP) by 2030. to love the country.
In addition, the national debt may not exceed half of GDP. In the 2021-2025 period, the government tried to control the overspending of the state budget as approved by the National Assembly in the plan for collecting and spending the state budget and the national financial plan in the five-year period.
According to the target, the country’s external debt would not exceed 45% of GDP by 2030, according to a report by the Saigon Times.
The government will regularly assess the impact of borrowing on government debt, the government debt and the debt service obligation, and maintain the overspending of the state budget and capital from the state budget for debt payment within approved limits to achieve these objectives.
The government also plans to issue bonds, mainly with maturities of five years and longer, and government bonds in the local market to meet the demand for capital mobilization and to develop the government bond market.
The issuance of government bonds to offset the budget deficit, restructure the government debt and finance development projects will be carried out when conditions are favourable.
With Official Development Assistance and Foreign Preferential Loans until the end of 2020, the government demanded new loans to key sectors to improve capital effectiveness, especially those promoting sustainable development, such as those for climate change adaptation, improving environmental quality, education, health care and technology. .
In addition, some public investment programs will be developed to implement key projects and address national and regional development and regional connectivity issues.
The government will also manage loans under its guarantee in accordance with the law and focus on providing the loan guarantee for key national projects approved by the National Assembly and the government.
Foreign loans from local companies and credit institutions will be monitored to stay within the limit. The government will also improve regulations to control foreign loans in line with international practices, the Saigon Times reported.