Vietnam plans to spend $11.3 bln to repay government debt in 2018

Vietnam is planning to spend VND256.7 trillion ($11.3 billion) this year to repay government debt, according to authorities.

That figure has increased by VND18.7 trillion ($823 million) compared to 2017 under a plan recently approved by Prime Minister Nguyen Xuan Phuc.

To implement the plan, the government plans to borrow VND384 trillion ($16.8 billion), of which 72 percent will come from domestic loans and the rest from foreign sources.

Government debt, along with company loans guaranteed by the government and provincial debt, make up Vietnam’s total public debt. Last year, public debt was estimated at VND3,130 trillion ($137 billion), or 62.6 percent of Vietnam’s GDP.

The state budget for overspending this year is estimated at VND204 trillion ($8.9 billion), equivalent to 3.7 percent of Vietnam’s GDP, according to the 2018 budget approved by the National Assembly in November 2017.

The government plans to gradually cut state budget overspending to ensure public debt safety by setting an overspending target of 3.6 percent of GDP in 2019, and 3 percent of GDP in 2020.