Vietnamlawmagazine

By 2015, Vietnam’s public debts will account for under 65 percent of the gross domestic product (GDP), of which Government loans and foreign debts will be below 50 percent of GDP.

This is provided in Prime Minister Decision No. 689/QD-TTg of May 4 on the 2013-2015 medium-term debt management program.

Under the program, the Government’s direct debts (excluding sub-borrowings) will be under 25 percent of the annual total State budget and the nation’s annual foreign debts will be under 25 percent of its commodity and service export value.

State budget overspending will be reduced to below 4.5 percent of GDP by 2015 from 4.8 percent in 2013 and some 4.7 percent in 2014.

Meanwhile, the State’s foreign exchange reserves will be equal to over 200 percent of the nation’s short-term foreign loans.

The Prime Minister demands the tough control of the grant and management of government guarantees, especially those applied on prioritized projects.

Under the program, the underwriting for international bonds will not be considered for the near future but debts within the safety limit approved by authorities, the national financial security and the macro-economic balance must be ensured.