Vietnam's sovereign debt was calculated at 61.3% of GDP in 2015. (Photo:theconversation.com)
Vietnam’s public debt was calculated at 61.3% of gross domestic product (GDP) as of December 31, 2015, lower than the 65%-of-GDP ceiling, the Debt Management and External Finance Department under the Ministry of Finance has said.
The country’s government debt stayed at 48.9% of GDP while the ratio of foreign debt was 41.5%, all within the secure limits.
On breaking down, Vietnam’s public debt was comprised of 80.3% in government debt, 18.2% in government-guaranteed debt and 1.5% in local government debt.
Meanwhile, official development assistance (ODA) and concessional loans constituted 94% of the government’s foreign debt.
During 2015, the government allocated $2.8 billion in foreign loans to ministries and sectors. Of the amount, $705 million was earmarked to the power sector, $490 million to the transport sector, and $490 million to the agriculture and rural development.
The government on-lent $1.96 billion last year, or 49% of the foreign loans signed in the year.
As much as $5.2 billion worth of ODA and concessional loans was disbursed in 2015, of which 31% was on-lent, according to the department.
Finance Minister Dinh Tien Dung said at a National Assembly meeting in November 2015 that the country’s public debt would reach a peak of 64% of GDP before being curbed at as low as 58% in 2020.