According to the Federal Reserve and the US Department of the Treasury, foreign countries held a total of $7.03 trillion in US treasury securities as of June 2021.
|Vietnam held $39.2 billion in US treasury securities as of June, 2021 |
Of the total $7.2 trillion held by foreign countries, Japan and Mainland China held the greatest portions. China held $1.1 trillion in US securities. Japan held $1.28 trillion. Other foreign holders included oil exporting countries and Caribbean banking centres, Statista noted.
Vietnam held $39.2 billion in US treasury securities as of June.
The US Treasury securities are issued by the federal government and are considered to be among the safest investments because all Treasury securities are backed by the "full faith and credit" of the US government. This means that come what may – recession, inflation, war – the US government is going to take care of its bondholders.
Experts believe how much Vietnam lends to the US illustrates more of Vietnam's strength than the US' debt burden. Thanks to its strong position as the international payment currency and a stable political and economic system, the greenback has long viewed as the main reserve currency in the global context.
“The data are collected primarily from US-based custodians and broker-dealers. Since US securities held in overseas custody accounts may not be attributed to the actual owners, the data may not provide a precise accounting of individual country ownership of Treasury securities,” Statista said.
In 2020, the US had a total public national debt of $26.95 trillion, an amount that has been rising steadily, particularly since 2008. In 2019, the total interest expense on debt held by the public of the US reached $404 billion dollars, while $170 billion in interest expense were intra governmental debt holdings. Total outlays of the US government were $4.45 trillion in 2019. By 2025, spending will reach $5.45 trillion, Statista said.
By Lam Tien