Vietnam public debt projected to touch 64% of GDP in 2018: Ministry

This results in a public debt of VND35 million (US$1,510) per capita, up nearly VND4 million (US$172,60) from the figure of VND31.3 million (US$1,350) in 2017, according to the Ministry of Planning and Investment.


Vietnam public debt projected to touch 64% of GDP in 2018: Ministry, vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking ne



The Ministry of Planning and Investment (MPI) projected Vietnam's public debt by the end of 2018 to reach VND3,530 trillion (US$152.34 billion) or 63.92% of GDP, up from the previous rate of 61.3% in 2017.  

Of the public debt, government debt would be over VND2,900 trillion (US$125.13 billion) or 52.5% of GDP, government guaranteed-debt of VND559 trillion (US$25.45 billion) and local government debt of VND73 trillion (US$3.14 billion), stated a recent MPI's report.

Notably, the country's overspending is set to reach 3.71% of GDP in 2018, of which the rate for central government would be 3.6% of GDP. 

The ministry's projection for public debt is based on assuming the average economic growth rate of 6.53%, equivalent to nominal GDP of VND5,530 trillion (US$238.54 billion) and inflation rate staying below 4%. This scenario is considered the most likely. 

This results in a public debt of VND35 million (US$1,510) per capita, up nearly VND4 million (US$172,60) from VND31.3 million (US$1,350) in 2017. 

In the 2018 - 2020 period, Vietnam's ratio of public debt to GDP would reach its peak in 2018 of 63.92%, then decline slightly to 63.46% in 2019 and 62.58% in 2020, which are all below the limit of 65% of GDP set by the National Assembly. 

However, the public debt is on growing trend in terms of scale, averaging an increase of VND360 - 380 trillion (US$15.53 - 16.39 billion) per year.

Specifically, Vietnam's public debt is expected to reach VND3,900 trillion (US$168.31 billion) and VND4,300 trillion (US$185.57 billion) in 2019 and 2020, respectively, equivalent to respective nominal GDP of VND6,150 trillion (US$265.36 billion) and VND6,850 trillion (US$295.56 billion), according to the ministry's report.

According to the MPI, overspending in the next three years would be 3.71%, 3.59% and 3.4% of GDP. 

In a recent update on Vietnam, HSBC forecast the country's public debt-to-GDP ratio to rise moderately to 61.6% this year and to go down to 61.4% in 2019, assuming a fiscal deficit of 4% of GDP for both years, which is above the government's target deficit of 3.7% for this year. 

However, if the government is able to meet its target deficit of 3.7% for the year, the report estimated that the public debt-to-GDP ratio could be as low as 61.2% by the end of the year. 

Hanoitimes

Vietnam public debt projected to touch 64% of GDP in 2018: Ministry, vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking ne
 
*
*
*
  Send