Vietnam’s debt indexes are safe

October 18, 2011 | 09:12

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Vietnam’s debt indexes are at safe levels, with public debt managed tightly, domestic and external debts paid and having no bad debt, said the Ministry of Finance (MoF).

Vietnam’s debt indexes are safe - illustration photo

At an international seminar on management of public debt and external national debt held in Hanoi on October 17, the ministry reported that by December 31, 2010, Vietnam’s public debt was 57.3 per cent of GDP, government debt, 45.7 per cent and external national debt, 42.2 per cent.

The ministry affirmed that Vietnam’s debt is for development investment, not for regular expenses and administrative costs. Most loans are longterm with preferential interest rates and public debt has not caused pressure on the state budget.

According to Nguyen Thanh Do, director of the MoF's Department for Debt Management and External Finance, Vietnam plans to manage debts by effectively controlling the macro-economy, increasing state budget collection, exports and reserves of foreign currency, while continuing to accelerate the examination of the use of loans and risk management.

At the seminar, which was jointly held by the MoF, the World Bank (WB) and the UN Conference on Trade and Development (UNCTAD), Vietnamese experts benefitted from the experience in debt management of international financial organisations and foreign debt management agencies.

At the event, foreign experts also analysed the situation of Vietnam’s public debt and debt management and suggested measures for sustainable debt management.

VIR/VNA

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