To manage public debt in a sustainable way, the Ministry of Finance said it will continue to strengthen supervision, inspection and audit of public debt, besides publicising public debt information and constantly improving the legal framework for public debt management.
According to the ministry’s Bulletin No.16 on Public Debt of Vietnam for the 2018-22 period, to date, all targets set by the National Assembly in public debt repayment for the 2021-25 period have been completed.
Models for a public debt management agency are diverse, and there are also many different debt management approaches and methods around the world, experts told the workshop.
The Ministry of Finance (MoF) announced on Wednesday that the appreciation in the value of the greenback did not make much impact on the Government’s public debt and debt payment.
Viet Nam is targeting to control public debt below 60 per cent of gross domestic product (GDP) by 2030 to ensure debt safety and national financial security.
Việt Nam managed to control public debt within a safe level with gradually slowing year-on-year increases. However, according to the Ministry of Finance, the economy was severely hit by the COVID-19 pandemic in the past three years.
Public debt indicators were under strict control and fell within the permissible limits set by the National Assembly’s Resolutions as of the end of 2018.
The State budget deficit and rising public debt are among the biggest macro-economic risks facing Viet Nam, making it more difficult for the Government to help the economy head towards growth.
The rest of this year is likely to be a difficult period for the economy meaning challenges for the Government in achieving the targets set for the year.
Minister of Finance Dinh Tien Dung and Governor of State Bank of Viet Nam Le Minh Hung were on the hot seats on Thursday, opening the three-day hearing of the 14th National Assembly (NA)’s fourth meeting.
The Government should consider international practices to re-define its public debt in the revised Law on Public Debt Management that is scheduled for submission to the National Assembly late this month.