Vietnam’s public debt rising
With the expected increase, by the end of this year, the country’s public debt will reach 63.9% of GDP ($151 billion). The prediction is created based on the scenario that Vietnam will grow by 6.53% in 2018, and with inflation lower than 4%. Vietnam’s parliament has set the public debt ceiling to 65% of the country’s GDP.
Vietnam’s public debt in the last 6 years
2018: 63.9% (estimated)
Vietnam’s public debt consists of central government debt, provincial government debt and loans guaranteed by the government. Currently, central government’s debt is the main source of the overall public debt, accounting for 52.5% of Vietnam’s GDP.
On the positive side, the Ministry of Planning and Investment is expecting that public debt is going to decrease to 63.46% of the GDP in 2019, and 62.5% in 2020.
While Vietnam’s debt is set to rise in 2018, the country has achieved some remarkable results during this year, namely:
- Trade surplus of more than $3.1 billion
- Thriving manufacturing sector
- Improvement of the country’s credit rating
- Swift GDP growth during the first half of the year (7.08%)
- Vietnam’s strong ranking on the World Economic Forum’s Competitiveness Index