The Vietnamese government plans to borrow VND676.06 trillion ($27.6 billion) in 2024 to cover the state budget deficit and finance rollovers and reloans, according to a report sent to the parliament.
The outlay is VND55 trillion ($2.24 billion) and VND71.67 trillion higher than the National Assembly-approved and real 2023 figures, respectively.
The funds would come from bond sales, official development assistance (ODA), and foreign preferential loans.
Of the total, the government plans to spend VND395.9 trillion ($16.16 billion) on debt servicing, up VND84.3 trillion ($3.46 billion) from 2023.
The government will not provide guarantees for programs or projects to take loans at home and abroad, the plan noted.
Local governments plan to borrow VND30.6 trillion ($1.25 billion) and use VND4.1 trillion ($168 million) for debt servicing next year. Their outstanding loans will reach VND96 trillion ($3.94 billion) by end-2024.
In addition, the government plans to take net loans of a combined $7.5-8.5 billion next year.
Under the plan, Vietnam’s public debt will come in at 39-40% of GDP at end-2024, government debt at 37-38%, and foreign debt 38-39%. The government’s direct debt servicing will account for 24-25% of the state budget revenue. All the figures are below the regulatory ceilings.
For 2023, the government sees a fiscal deficit of 4% of GDP, public debt at 39-40%, government debt 36-37%, and foreign debt at 37-38%.
The 2024 borrowing plan puts projections of GDP growth at 6.0-6.5%. State budget revenue is projected to reach VND1,650 trillion ($67.34 billion), up VND30 trillion ($1.23 billion) from the 2023 estimate. The fiscal deficit is planned at 3.6% of GDP.