Public debt in 2021 in Vietnam stood at 43.1% of GDP, under the National Assembly’s 60% ceiling, says a Ministry of Finance bulletin.

The country’s public debt has gradually declined over the last five years the report indicates, down from 61.4% in 2017 to 43.1% of GDP last year. With GDP of $368 billion in 2021, Vietnam’s public debt stood at $157 billion.

As well as public debt, data published by the finance ministry corresponding to 2017 – 2021 reveals government debt, government-guaranteed debt and local government debt were also falling, VN Express reports.

Vietnam’s government debt fell from 51.7% of GDP in 2017 to 39.1% in 2021, equating to almost $144 billion. Whereas government-guaranteed debt fell from 9.1% in 2017 to 3.8% last year, close to $14 billion, and foreign debt stayed at 38.4% by the end of 2021, compared to 2017’s figure of 49%.

Although there was a reduction in foreign debt, there was a substantial increase in domestic debt, making up 67.2% of the government’s outstanding debt - $95 billion – at the end of last year.

Moreover, there was a slight increase in Vietnam’s foreign debt obligation, by 6.8% of total exports in 2021.

The finance ministry’s bulletin showed Vietnam’s largest bilateral creditors are Japan, South Korea, France and Germany. As of last year, Japan has lent $15.3 billion; South Korea ($1.36 billion) and France ($1.28 billion).

At the top of the list of multilateral partners lending to Vietnam were the World Bank with $16.2 billion and the Asian Development Bank with $8.032 billion.

In 2022, the government is predicted to borrow up to $30 billion, 96% of which is loans to balance the central budget, the VN Express report adds.
Should GDP growth be as expected this year, the government forecasts public debt will be around 43% - 44% of GDP.