Vietnamese gov’t’s 2024 borrowings to rise 6.5% to $28.2 bln

The Vietnamese government has received the National Assembly’s green light to borrow VND690.55 trillion ($28.2 billion) in 2024, up 6.5% year-on-year.

The money will help offset an estimated fiscal deficit of VND399.4 trillion ($16.3 billion) and service debt, according to a resolution passed Friday by the parliament.

The resolution sets the state budget revenue target at VND1,701 trillion ($69.4 billion) and budgetary expenditure at VND2,100 trillion ($85.7 billion). It estimates the 2024 fiscal deficit at 3.6% of the GDP.

It asks the government to prevent budget revenue losses and increase tax collection for the central budget.

The government should also report on the equitization process of state-owned enterprises (SOEs) and equity divestments from SOEs, and work out measures to accelerate this process, the resolution says.

The parliament has agreed to carry forward VND19.04 trillion ($777 million) of unused funds by local governments to ensure a salary raise for employees in the state-run sector.

Speaking at the parliament session Wednesday, Prime Minister Pham Minh Chinh said that over VND560 trillion ($23 billion) had been earmarked for carrying out salary reforms in the next three years (2024-2026).