Monday, 28/10/2019 19:07 (GMT+7)
The latest Government’s report shows that by the end of 2019, debt-to-GDP ratio is expected to remain within the safe thresholds allowed by the National Assembly.
Photo for illustration. (Source: vietnambiz.vn)
Accordingly, Vietnam’s public debt will stand at 56.1% of GDP, continuing to decrease compared to 2018 (58.4% of GDP) while the Government’s debt will be 49.2% of GDP, lower than 50% of GDP in 2018; the Government’s direct debt obligations compared to State budget collection is estimated at 19.5-20.5%.
Vietnam’s foreign debt-to-GDP ratio is forecast to decrease to about 45.8% while the figure is 46% in 2018.
The ratio is basically controlled under the ceiling level allowed by the National Assembly (less than 50% of GDP).
The report also shows optimistic information about the economy as the financial market, currency and exchange rates are maintained appropriately. Currently, the country’s foreign exchange reserve reaches about USD73 billion.
Together with that, restructuring credit institutions in association with dealing with bad debts also achieved positive results, ensuring the safety for the system.
By the end of June this year, non-performing loans (NPLs) ratio of the credit institution system was 1.91%; NPLs ratio, debt sold to Vietnam Asset Management Company (VAMC) which haven’t yet been settled and latent debts becoming NPLs were 5.39%; sharply decreasing compared 10.08% in the end of 2016, 7.36% in 2017 and 5.85% in the end of 2018./.
BTA