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Vietnam Today

PM upbeat about public debt

Released at: 15:20, 19/06/2015

PM upbeat about public debt

Level remains under international thresholds and is being controlled, according to PM.

by Hoai An

On June 18 Prime Minister Nguyen Tan Dung expressed a positive attitude towards the country’s public debt during a meeting to farewell the outgoing Director of the Asian Development Bank (ADB) in Vietnam, Mr. Tomoyuki Kimura.

The PM stressed that ODA and public debt are of great concern to Vietnam. Debt is being used for financial development and infrastructure investment, he said, and remains at a safe level.

“ODA is urgently needed and is managed and used efficiently for Vietnam’s socio-economic development, infrastructure investment, poverty reduction, and human resources development and training,” the PM said.

Four years ago, when Mr. Kimura first came to Vietnam, the country faced a host of difficulties and challenges due to the negative impact of the global financial crisis. “However, with a lot of effort, Vietnam successfully coped with the crisis, maintained a stable macro-economic situation, achieved high growth rates, and managed issues relating to social security and welfare,” he said. He added that the ADB always stands ready to accompany Vietnam in its further development.

In terms of economic restructuring, the PM said that the government continues to create favorable conditions for small and medium-sized enterprises and highlighted the important role of education and human resources training in meeting the requirements for future development.

According to a recent government report, public at the end of 2013 was 54.2 per cent of GDP and 60 per cent at the end of 2014. Despite the significant increase, the government noted that it remains lower than the 65 per cent considered the safety threshold under international standards for public debt and foreign debt strategies between 2011 and 2020. To 2030 public debt will not exceed 65 per cent of GDP, government debt will not exceed 55 per cent, and the country’s foreign debt will be less than 50 per cent of GDP.

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