In 2025, the Government plans to borrow 815,238 billion VND

Photo: QUANG DINH

The Government has just reported to the National Assembly before the 8th session of the 15th National Assembly on the public debt situation in 2024 and the forecast for 2025.

In 2025, according to the plan the Government is reporting to the National Assembly, it is forecasted that by the end of 2025, public debt will be at about 36-37% of GDP, government debt will be at about 34-35% of GDP, and the country's foreign debt will be at about 33-34% of GDP.

New loan demand increased by more than 20%

The Government's direct debt repayment obligation compared to budget revenue is about 24%. The country's foreign debt repayment obligation compared to the export turnover of goods and services (excluding short-term principal repayment obligations under 12 months) is expected to be about 7-8%. This index is guaranteed to be within the ceiling and threshold allowed by the National Assembly.

The total borrowing demand of the Government is expected to be VND 815,238 billion, an increase of 20.6% compared to the 2024 plan. Including loans from the central budget of VND 804,242 billion, an increase of 21.9% compared to the 2024 estimate, the rest is foreign loans for re-lending.

Mobilized sources include issuing government bonds, ODA loans, and foreign preferential loans. If necessary, other legal financial sources will be mobilized.

The Government's direct debt repayment obligation is expected to be about VND 468,542 billion (equivalent to about 24% of budget revenue). Including principal repayment of about VND 361,142 billion and interest repayment of about VND 107,400 billion.

The obligation to repay loans for re-lending is about 38,407 billion VND (repaying principal about 28,054 billion VND, paying interest about 10,353 billion VND).

In the direct debt repayment structure of the Government, domestic debt repayment is expected to account for about 87.5%. The remainder is ODA and foreign preferential loan repayment. The source for interest repayment is arranged in the budget estimate. The source for principal repayment is arranged from new loan mobilization, which is domestic loan sources.

Regarding guarantees for domestic and foreign loans for enterprises, it is expected that in 2025 the Government will not consider issuing new guarantees for programs and projects to borrow capital.

It is expected that by the end of 2025, the outstanding loan guarantee for domestic enterprises will be about VND 5,039 billion, and foreign loan guarantee will be about VND 58,454 billion.

For the Social Policy Bank, it is expected to issue government-guaranteed bonds with the principal repayment due at VND10,800 billion. The expected outstanding guarantee for the Development Bank is about VND76,071 billion, and for the Social Policy Bank is about VND77,731 billion.

Synchronously implement public debt management solutions

Based on the Government's 2025 budget estimate submitted to the National Assembly, it is expected that the local budget deficit in 2025 will be VND 28,400 billion.

Total borrowing for the year is about 31,772.9 billion VND, expected to mainly come from ODA loans, foreign preferential loans from the Government and other domestic loans.

Total principal repayment is about 3,322.9 billion VND, interest repayment during the year is about 3,147 billion VND. Total outstanding debt at the end of the year is about 105,547.3 billion VND.

According to the Government's assessment, the year 2025 is of great significance. Therefore, the Government emphasizes the synchronous and complete implementation of solutions on public debt management. Ensuring public debt borrowing and repayment within the approved scope.

Closely monitor debt safety indicators to ensure they are within the ceiling and warning thresholds. Continue to implement solutions to accelerate public investment disbursement. Review and remove difficulties in mechanisms and policies.

Flexibly use appropriate and regulated mechanisms, policies and tools to mobilize sufficient resources for budget needs. Review problems and overlaps related to budget finance, public investment, ODA loans and foreign incentives.

Amending and supplementing the Law on Public Investment, the Law on State Budget, and related legal documents in a synchronous, clear, easy-to-understand direction, promoting decentralization, simplifying procedures...

Facilitate borrowing and repayment activities and comply with the principles in accordance with current laws. Do not borrow when there are terms that are contrary to Vietnamese law.

Strengthening contact and promotion with domestic and foreign government bond investors. Improving the effectiveness of national credit rating assessment. Aiming to achieve investment grade rating by 2030. Thereby contributing to consolidating Vietnam's position and prestige in the international arena.

Source: https://tuoitre.vn/nam-2025-chinh-phu-du-kien-vay-815-238-ti-dong-20241014123544018.htm