The government report on public debt for 2024 projects that public debt will account for 36-37% of GDP by the end of the year, equivalent to 4-4.1 quadrillion VND (approximately $165-170 billion), significantly below the 60% ceiling set by the National Assembly.
Government debt is estimated at 33-34% of GDP, and external debt at 32-33%, all within safe thresholds.
Most government debt, about 76%, comes from domestic sources, primarily through bonds held by insurance companies, Vietnam Social Security, and investment funds. Foreign creditors mainly include multilateral and bilateral development partners like the World Bank, Asian Development Bank (ADB), Japan, and South Korea.
The government emphasizes that debt management adheres to the resolutions of the National Assembly, ensuring safety and full compliance with repayment commitments. Government-guaranteed debt has been reduced from 3.8% of GDP in 2021 to 2-3% in 2024.
However, challenges remain, such as delays in negotiating and disbursing foreign loans, higher borrowing costs abroad compared to domestic rates, and increased foreign exchange risks. Legal obstacles and unresolved issues in public investment and bidding processes have further hindered the progress of foreign loan agreements.
To address these challenges, the government plans to accelerate the disbursement of public investment capital and flexibly mobilize resources from both domestic and international markets. By 2025, public debt is expected to remain at 36-37% of GDP, government debt at 34-35%, and external debt at 33-34%, with direct debt repayment obligations of the government accounting for about 24% of budget revenue.
