Under the new strategy, the foreign debt-to-GDP ratio represents a five-percent increase from the previous edition of the public debt strategy through 2030 which had been adopted by the Government in 2022.
Photo with AI support (Source: VGP)
The Government has decided to raise foreign debt-to-GDP ratio to 50 percent by the end of this decade, the Government News quoted the latest public debt strategy released by the Government on October 15 as reporting.
The above ratio represents a five-percent increase from the previous edition of the public debt strategy through 2030 which had been adopted by the Government in 2022.
Other debt indicators, including public debt, government debt, and direct debt payment obligation remain the same.
Specifically, annual public debt shall not exceed 60 percent of GDP while annual government debt shall not exceed 50 percent of GDP.
Meanwhile, the Government's direct debt payment obligation shall not exceed 25 percent of total state budget revenue.
Last February, the Government released a debt plan, under which the Government targets to borrow VND969,796 billion ($38.5 billion) in 2026.
The figure includes VND583,700 billion for central budget to cover deficits, and VND376,005 for repayment of debts.
The Government said it would mobilize the funding through issuance of Government bonds, international bonds, official development assistance and concessional loans, and other lawful resources.