Decision 1940/QD-TTg approving 2025 public borrowing and debt repayment plan and 3-year (2025-2027) public debt management program

DECISION

Approving the 2025 public borrowing and debt repayment plan and the 3-year (2025-2027) public debt management program^[1]

THE PRIME MINISTER

Pursuant to the February 18, 2025 Law on Organization of the Government; and the June 16, 2025 Law on Organization of Local Administration;

Pursuant to the November 23, 2017 Law on Public Debt Management;

Pursuant to the June 25, 2025 Law on the State Budget;

Pursuant to the National Assembly’s Resolution No. 23/2021/QH15 of July 28, 2021, on the 5-year (2021-2025) national financial plan and public borrowing and debt repayment;

Pursuant to the National Assembly’s Resolution No. 159/2024/QH15 of November 13, 2024, on the 2025 state budget estimates, and Resolution No. 160/2024/QH15 of November 13, 2024, on allocation of the 2025 central budget;

Pursuant to the Government’s Decree No. 91/2018/ND-CP of June 26, 2025, on the grant and management of government guarantee;

Pursuant to the Government’s Resolution No. 181/NQ-CP of June 19, 2025, on limits of government guarantee and on-lent loans in 2025;

Pursuant to the National Assembly’s Resolution No. 227/2025/QH15 of June 27, 2025, on the Resolution of the 8^th session of the 15^th National Assembly;

At the proposal of the Ministry of Finance in Document No. 418/TTr-BTC of December 31, 2025; Official Letter No. 6055/BTC-QLN of May 7, 2025, on the 2025 public borrowing and debt repayment plan and the 3-year (2025-2027) public debt management program; Official Letter No. 6844/BTC-DCTC of May 20, 2025, approving limits of issuance of government-guaranteed domestic bonds in 2025 of the Vietnam Development Bank; Official Letter No. 7350/BTC-QLN of May 28, 2025, on the repayment of loans of the Hanoi-Hai Phong Expressway Project; Official Letter No. 8921/BTC-DCTC of June 20, 2025, approving limits of issuance of government-guaranteed domestic bonds in 2025 of the Social Policy Bank; Official Letter No. 11425/BTC-QLN of July 28, 2025, on the finalization of the draft decision on the 2025 public borrowing and debt repayment plan and the 3-year (2025-2027) public debt management program; and Official Letter No. 12929/BTC-QLN of August 21, 2025, on the review and completion of the 2025 public borrowing and debt repayment plan and the 3-year (2025-2027) public debt management program;

DECIDES:

Article 1. To approve the 2025 public borrowing and debt repayment plan and the 3-year (2025-2027) public debt management program with the following main contents:

1. Objectives:

a/ To ensure funding sources for full and timely repayment of public debts without affecting the national credit rating; to continue restructuring the government bond debt portfolio in conformity with market conditions and implementation needs.

b/ To ensure the performance of the task of mobilizing borrowed capital through the diversification of domestic and foreign borrowing sources and methods to meet state budget balancing and socio-economic development needs with appropriate cost-risk levels, prioritizing the mobilization of foreign capital for large-scale and important projects capable of creating turnarounds or breakthroughs.

c/ To strictly control debt safety indicators within the ceiling and warning thresholds approved by competent authorities.

d/ To promote the development of the domestic capital market; and maximize the use of official development assistance (ODA) and foreign concessional loans.

2. The 2025 public borrowing and debt repayment plan:

a/ The Government’s planned total borrowing is VND 815,238 billion at most, including:

- Borrowing for the central budget balancing: VND 804,242 billion at most, of which borrowing for offsetting the central budget deficit is VND 443,100 billion at most, and borrowing for repaying debt principals must not exceed VND 361,142 billion.

- Borrowing for on-lending: VND 10,996 billion at most.

Funding sources shall be flexibly mobilized through (i) issuing government bonds; (ii) borrowing ODA and foreign concessional loans; and (iii) borrowing from other lawful financial sources, when necessary.

b/ The Government’s debt repayment is VND 506,949 billion at most, of which the Government’s direct debt repayment must not exceed VND 468,542 billion, and debt repayment for on-lending projects is VND 38,407 billion at most.

c/ Regarding government-guaranteed loans:

- The limit of issuance of government-guaranteed domestic bonds for the Vietnam Development Bank is VND 0.

- The limit of issuance of government-guaranteed domestic bonds for the Social Policy Bank in 2025 is VND 10,521 billion.

- For guarantee for domestic and foreign loans of enterprises: To adhere to the principles stated in the Political Bureau’s Resolution No. 07-NQ/TW and the National Assembly’s Resolution No. 23/2021/QH15, to refrain from allocating government guarantee limits in 2025 as the projects do not require capital withdrawal, but only debt repayment.

d/ The borrowing and repayment plan of local administrations:

- Total borrowing for the year: VND 31,773 billion.

- Total principal repayment: VND 3,323 billion; total interest and charge payment: VND 3,147 billion.

3. For foreign commercial loans of enterprises not guaranteed by the Government in 2025: The limit of medium- and long-term foreign commercial loans of enterprises and credit institutions borrowed under the self-borrowing and self-repayment mechanism is approximately USD 5,500 million; the growth rate of short-term foreign outstanding debts is around 18-20% compared to that at the end of 2024.

4. The 2025 borrowing and repayment plan will be implemented within the limits specified in Clauses 2 and 3 of this Article; in case of arising needs exceeding the above limits, the Ministry of Finance shall propose the Prime Minister to adjust the plan.

5. The 3-year (2025-2027) public debt management program:

a/ Regarding the Government’s borrowing and debt repayment

- The Government’s total borrowing for the 2025-2027 period will be approximately VND 2,218 trillion at most, of which approximately VND 2,183 trillion will be for the central budget; and approximately VND 35 trillion will be for on-lending of ODA loans and foreign concessional loans.

- The Government’s total debt repayment for the 2025-2027 period will be approximately VND 1,346 trillion at most, of which approximately VND 1,226 trillion will be for direct debt repayment; and approximately VND 120 trillion for on-lending of loans.

- To proactively allocate resources for fulfilling the Government’s debt repayment obligations, preventing overdue debts that could affect the Government’s international commitments.

b/ Regarding the Government’s guarantee limits

- As for guarantees for the bond issuance by the two policy banks, the maximum guarantee limit for the Vietnam Development Bank for the 2025-2027 period is VND 14,160 billion. For the Social Policy Bank, based on the actual recovery of due debts under credit programs of the socio-economic recovery and development program, as well as the market situation of the government-guaranteed bond issuance, the guarantee limit for the 2026-2027 period shall be applied in accordance with the same principle as in 2025, which is equal to the value of maturing bonds to be repaid minus the amount of debt recovered under the recovery program.

- To thoroughly and strictly control the grant of government guarantee for loans within the guarantee limits approved by competent authorities; to ensure the amount of capital withdrawal does not exceed the principal repayment obligation in the year.

c/ Regarding borrowing and debt repayment of local administrations: To control limits of  budget deficits and debts of local administrations in accordance with the Law on the State Budget and other relevant laws.

6. Organization of implementation:

a/ Ministries, ministerial-level agencies, and provincial-level People’s Committees shall:

- Thoroughly grasp viewpoints and guidelines provided, and organize the implementation of the contents related to finance, budget, and public debt stated in the Resolution of the 13^th National Congress of the Communist Party of Vietnam, the 10-year (2021-2030) socio-economic development strategy, the 5-year (2021-2025) socio-economic development plan, the Political Bureau’s Resolution No. 07-NQ/TW of November 18, 2016, on policies and solutions for restructuring the state budget and managing public debts in order to ensure a safe and sustainable national financial system, and the National Assembly’s Resolution No. 23/2021/QH15 of July 28, 2021, on the national financial plan and the 5-year (2021-2025) public borrowing and repayment plan.

- Regarding the Government’s foreign loans for programs and projects, ministries and central and local agencies are assigned to urgently allocate the 2025 public investment plan funded by the central budget detailed to the list and allocated capital amount for each project within the time limit specified in the Law on Public Investment; regarding new projects borrowing foreign loans, prioritize important projects capable of creating turnarounds or breakthroughs; and address existing problems that have caused the slow disbursement of capital for projects funded by ODA or concessional loans.

- Perform the state management of, monitor, examine, supervise, inspect, and report and provide information on, public debts, government debts, and local administration debts under regulations.

- Accelerate the disbursement of public investment capital in conformity with the list of projects allocated with annual public investment capital and the medium-term 5-year public investment plans, thereby contributing to improving the efficiency of mobilizing and using borrowed capital, ensuring thrift practice and waste combat.

b/ The Ministry of Finance shall:

- Strictly control the state budget deficit, local budget deficit, levels of local budgets’ borrowing, and the Government’s debt repayment obligation ratio.

- Study new methods of mobilizing loans, ensuring the mobilization of sufficient loans for development investment, meeting the needs of large-scale projects on transportation infrastructure, climate change prevention and digital transformation; and at the same time, control public debts and national foreign debts within the ceilings and warning thresholds for the 2021-2025 period and beyond.

- Report to competent authorities for prioritizing the allocation of a portion of the annual budget increase (if any) to reduce the budget deficit and repay principal loans from the state budget, thereby reducing the debt burden and easing pressure on the Government’s direct debt repayment in the medium and long term

-  Proactively manage the volume of government bonds to be issued in line with the market demand and absorption capacity, meeting the central budget’s capital needs at interest rates appropriate to market conditions; to issue government bonds with diverse maturities, ensuring that the average maturity of to be-issued government bonds meets the targets set by the National Assembly.

- Intensify the examination of the use of borrowed capital and debt repayment.

- Improve the efficiency and enhance the capacity of public debt management in accordance with the 2017 Law on Public Debt Management, manage the apparatus in a streamlined, effective and efficient manner based on the principle of “one task assigned to one agency and one person in charge, with related agencies responsible for coordination”, focusing on forming a professional and modern public debt management agency in conformity with international practices as directed in the Political Bureau’s Resolution No. 07-NQ/TW; improve professional qualifications of civil servants engaged in debt management.

- Continue carrying out communication and promotion activities with investors in international and domestic capital markets, improve the effectiveness of the national credit rating assessment work, aiming to achieve the good investment rating by 2030, thereby contributing to strengthening Vietnam’s profile and credibility on the international arena, and facilitating capital mobilization from all economic sectors.

- Assume the prime responsibility for, and coordinate with related agencies in, reviewing and evaluating the implementation of the 5-year (2021-2025) public borrowing and debt repayment plan and formulating a scheme on the 5-year (2026-2030) public borrowing and debt repayment plan for submission to the competent authority for approval under regulations.

- Proactively manage the 2025 debt repayment estimates of the central budget and mobilize funds from the issuance of government bonds in 2025 to repay the remaining debt obligations under the Government’s responsibility at SBIC in accordance with law. Regarding debt obligations for subsequent years, formulate the central budget’s debt repayment plan and submit it to the competent authority for approval under regulations.

- Organize the early repayment of loans for the Hanoi-Hai Phong expressway project, managing it within the scope of the central budget’s principal debt repayment estimates as approved by the National Assembly to repay for Kexim according to the Ministry’s competence in accordance with law.

- Ensure full and timely debt repayment, preventing overdue debts that could affect the Government’s commitments and the national credit rating; focus on allocating sufficient funds to fully repay long-term loans to the State Treasury, and at the same time, report thereon to the National Assembly in annual national budget estimates and finalizations; in case the budget estimates fail to allocate sufficient funds for repayment, to extend the terms of loans to the State Treasury under the Government’s Decree No. 14/2025/ND-CP of January 24, 2025.

c/ The State Bank of Vietnam shall:

- Strictly control the implementation of the foreign debt self-borrowing and self-repayment limit of enterprises not guaranteed by the Government, ensuring that it remains within the approved ceiling.

- Assume the prime responsibility for managing foreign debts of the private sector and, assume the prime responsibility for, and coordinate with the Ministry of Finance in, reporting to the Prime Minister in case of negative developments.

d/ The Social Policy Bank shall:

- Fully fulfill the due debt repayment obligations (principal and interest) for government-guaranteed bonds in 2025.

- Proactively consider and decide on the specific volume of government-guaranteed bonds issued in 2025 based on the actual recovery of due principal of credit programs under the socio-economic recovery and development program under the National Assembly’s Resolution No. 43/2022/QH15 of January 11, 2022, on fiscal and monetary policies supporting the socio-economic recovery and development program, the Government’s Resolution No. 11/NQ-CP of January 30, 2022, on the socio-economic recovery and development program and the implementation of Resolution No. 43/2022/QH15, and the practical issuance of government-guaranteed bonds in the market. In case the Social Policy Bank recovers due principal debts of credit programs under the socio-economic recovery and development program after completing the issuance of government-guaranteed bonds in 2025, the recovered amount will be deducted from the Social Policy Bank’s government guarantee limit in subsequent years in accordance with law.

- To take full responsibility before law and competent state agencies for the proper and effective management and use of capital from the bond issuance, ensuring the compliance with the current regulations  on grant and management of government guarantee.

e/ The Vietnam Development Bank shall:

- Fulfill its obligations to repay due principal and interest of government-guaranteed bonds in 2025 (of which the principal is VND 4,550 billion).

- Strengthen the management and supervision, enhance the credit quality, and take full responsibility before law and competent state agencies for the management and use of funds from government-guaranteed bonds and other lawful capital sources, ensuring efficiency and compliance with law.

7. Funds for the implementation of the 3-year (2025-2027) public debt management program come from:

a/ Funds for the implementation of the programs and tasks allocated from the state budget and other lawful revenues in accordance with law.

b/ The Ministry of Finance shall assume the prime responsibility for, and coordinate with related units in, summarizing and balancing annual state budget estimates for the implementation of the Program.

Article 2. This Decision takes effect on the date of its signing.

Article 3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, the Chairperson of the Board of Directors of the Social Policy Bank, and the Chairperson of the Board of Directors of the Vietnam Development Bank shall implement this Decision.-

For the Prime Minister
Deputy Prime Minister
HO DUC PHOC