By 2030, public debts will not exceed 60% of GDP

The Prime Minister issues the Decision No. 460/QD-TTg on April 14, 2-22 on approving the Public Debt Strategy toward 2030.

With the orientation to organize loan capital mobilization at reasonable costs and acceptable risks to meet the demands of the state budget in each period and ensure the ability to pay debts; maintain indicators of public debts and government debts at safe levels, control foreign debts, ensure national financial security, the Public Debt Strategy set the specific targets as follows:

- 2021-2025 period:

+ To control the state budget deficit target approved by the National Assembly in the state budget estimate and the 05-year national financial plan for the 2021 - 2025 period, ensure debt safety targets including ceiling, threshold within limits approved by the National Assembly.

- By 2030

+ Public debts will not exceed 60% of GDP, government debts will not exceed 50% of GDP.

+The Government’s obligation of direct debt payment will not exceed 25% of total state budget revenues.

+ National foreign debts will not exceed 45% of GDP.

In order to complete the debt management policies and tools, the Strategy shall implement a number of tasks and solutions as follows:

- The completion of debt management policies and tools shall be implemented in reviewing laws regulations.

- Propose to complete the legal framework and organizational model on financial stability to implement macro-prudential policies.

- Implementing modern debt management tools and measures: Continuing to issue government bonds in association with restructuring public debt and government debt toward a focus on issuing government bonds with a term of 5 years or more when the market is favorable to both mobilize capital for the state budget and extend the average maturity...

- Increasing the publicity, transparency in public debt mobilization, management and use, and enhancing the national credit rating

- Developing the financial market, the domestic capital market: Diversifying the issuance maturities, developing a diversified system of investors in the Government bond market, prioritizing the development of long-term investors; Renovating the investment mechanism of Vietnam Social Security.