The Government has issued a decree on public debt management, according to which, information of public debts will be made public every six months.
|Vietnam's national debt as percentage of GDP|
The decree, which will take effect as of August 30, stipulates that the Ministry of Finance (MoF) will be responsible for providing information of the Government’s debts and debt payment plans, the Government’s guaranteed loans, local loans and debt payment.
The information will be made public every six months via news-bulletins posted in Vietnamese and English on the website of the MoF.
According to the decree, the Government will apply four instruments in public debt management.
The four instruments include the long-term strategy of public debts, a program on medium-term debt management, the Government’s annual plans on loans and debt payment, criteria for safety and supervision of public debts.
First, the long-term strategy of public debts will evaluate situations of public debts and public debt management during the implementation of the strategy, which is designed based on 5 or 10-year socioeconomic development plans. It also defines directions for mobilizing and controlling public debts.
Second, the program on medium-term debt management will comprise goals, tasks and measures on mobilizing, using, and paying public debts within a three-year period for the purpose of safety.
Third, the Government’s annual plans on loans and debt payment will be those on domestic loans, foreign loans and debt payment.
Fourth, criteria for safety and supervision of public debts will center on proportions of public debts in comparison with GDP, as well as foreign debts and GDP.
According to a report by the MoF, the Government’s debt in comparison with GDP was 42 percent by December 31, 2009.
The Government has affirmed that the Government’s public debt remains within the realm of safety.