Government requires to keep public debt to no more than 60% of GDP by 2030

On June 20-21, 2022, in Sam Son city, Thanh Hoa, the Ministry of Finance coordinated with the World Bank and the Swiss Federal Economic Department to organize a conference to disseminate the Public Debt Strategy to year 2030.

Speaking at the conference, Deputy Finance Minister Ta Anh Tuan said that in order to contribute to the successful implementation of the Socio-Economic Development Strategy for the 2021-2030 period, the Prime Minister issued Decision No. 460/ Decision-TTg dated April 14, 2022 approving the Public Debt Strategy to 2030. This is one of the nine branch strategies in the overall strategic system of the financial sector, an important basis for continuing reform of management. sustainable and effective public debt management, ensuring debt safety and national financial security.

Conference to disseminate the Public Debt Strategy to 2030.

The public debt strategy is built on the basis of the Socio-Economic Development Strategy for the 2021-2030 period along with major guidelines and orientations of the Party and the National Assembly’s Resolution on the socio-economic development plan. , National financial plan and borrowing and repaying public debt, 5-year medium-term public investment plan for the period of 2021-2025.

In which, the strategy sets a number of large balancing targets such as the average GDP growth rate of about 7%/year; GDP per capita by 2030 will reach about 7,500 USD; strive to overspend the state budget by 2030 about 3% of GDP.

The formulation of the Public Debt Strategy to 2030 inherits the active role of the public debt management policy in the past period, contributing to enhancing macro stability, supporting the economy, and promoting investment in infrastructure development. socio-economic strata, strengthen financial discipline – state budget.

The strategy also sets out a number of key perspectives and key objectives in public debt management.

Regarding the target, the Public Debt Strategy to 2030 strives for public debt not exceeding 60% of GDP, Government debt not exceeding 50% of GDP, the country’s external debt not exceeding 45% of GDP, the Government’s direct debt repayment obligation. government does not exceed 25% of the total state budget revenue.

In view, the debt strategy closely follows Resolution 07-NQ/TW of the Politburo on policies and solutions to restructure the state budget and manage public debt to ensure a safe and sustainable national finance. steady; strengthen the management of finance, state budget and public debt according to the medium-term plan; improve the efficiency of loan use; ensure debt repayment capacity, proactively restructure debt portfolio and enhance digital transformation in public debt management.

In addition, the Public Debt Strategy also sets out 6 major orientations in mobilizing and using loans, 8 groups of tasks and solutions to implement the strategy, focusing on perfecting institutions, policies and management tools. in debt; organize the implementation of modern debt management tools and measures; effectively mobilize, manage and use debt; develop the domestic financial and capital market; management of contingent debt obligations; organizational structure, information technology application; inspection, examination, supervision and transparency of information.

In the context of global economic challenges with far-reaching impacts on the recovery and growth of the domestic economy, agencies, organizations and the Ministry of Finance said that localities should soon study and thoroughly understand fully and set out detailed plans and roadmaps for each goal, assign specific tasks at each agency, organization, and locality, organize the implementation of solutions to mobilize, manage and use public debt capital to implement the Public Debt Strategy to 2030 effectively and practically.

According to the Ministry of Finance’s report, Vietnam’s public debt/GDP ratio has tended to decrease over time. By the end of 2020, public debt is equivalent to 55.9% of GDP, foreign debt accounts for 47.3% of GDP. By the end of June 2021, the Government’s debt amounted to more than 3.1 million billion VND, of which, foreign loans were more than 1.1 million billion VND; domestic loans of more than 2 million billion dong. By lender, the largest bilateral creditor of Vietnam is Japan with more than 333 trillion, South Korea, France and Germany in turn lent more than 33 trillion, 32 trillion, and 14 trillion dong.

In terms of multilateral partners, the World Bank topped the list of creditors with more than 382 trillion, followed by the Asian Development Bank (ADB) with more than 193 trillion…

Le Kim Lien


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