By June 18, Vietnam had signed or negotiated 22 loan and aid agreements with a total committed amount of more than US$2.5 billion for major projects in electricity power, traffic infrastructure and medical care.
The statistics were recently released by the Department of Debt Management and External Finance under the Ministry of Finance.
Vietnam’s public debt hit VND1,112 trillion by the end of 2010, or nearly 56.78 percent of the country’s GDP, according to the department.
It is estimated that the country’s public debt will surge to about VND1,375 trillion or approximately 60 percent of its GDP in 2011.
At the same time, Vietnam’s total foreign debt stands at VND835 trillion, equal to 42.2 percent of the country’s 2010 GDP. This ratio is expected to reach 44.5 percent in 2011.
However, the Finance Ministry assesses that these figures are still within safety limits and are permitted by the government.
The Department of Debt Management and External Finance under the Ministry of Finance has been assigned to conduct research to build legal corridors and introduce proposals for risk management with the aim of effectively controlling public debt and foreign debt.