VietNamNet Bridge – Vietnam’s public debt rose by about 12.2%, from 50% of GDP in 2011 to 62.2% at the end of 2015. Admitting the rapid increase of public debt, the Ministry of Finance (MOF) has confirmed that the structure of Vietnam's public debt is gradually being adjusted towards more sustainability with the ratio of foreign debt declining. Mr. Vo Huu Hien, Deputy head of the Debt Management and External Finance Department of the MOF, said the structure of public debt of Vietnam by the end of 2015 included: government debt accounting for 80.8%, Government guaranteed debt 17.8%; and local government debt 1.4%. In the government debt structure, the part of domestic debt rose from 39% in 2011 to 57% in 2015 while the proportion of foreign debt decreased from 61% in 2011 to 43% in 2015. Hien affirmed that such development is consistent with the national strategy on public debt and external debt in the 2011-2020 period and the vision to 2030. According to Hien, the … [Read more...] about What does the Finance Ministry say about Vietnam’s public debt structure?
As a developing country which is integrating in the international economy, Vietnam increasingly needs investment for development. Public debts are still important financial sources to offset state budget deficit for economic growth and sustainable development. Public debt effectiveness depends largely on policies of debt management. As a developing country which is integrating in the international economy, Vietnam increasingly needs investment for development. Public debts are still important financial sources to offset state budget deficit for economic growth and sustainable development. Public debt effectiveness depends largely on policies of debt management. … [Read more...] about Improving public debt management
The unexpected report about the banks’ bad debts to the real estate sector has been released by the National Finance Supervision Council, which shows that the actual bad debts are much higher than the figures announced before by government agencies. Actual bad debts 1.8 times higher than previously reported By the end of 2011, the total outstanding loans provided to fund real estate projects had reached 348 trillion dong. The figure, according to the National Finance Supervision Council, is 1.8 times higher than the figure released by commercial banks before, at 200 trillion dong. The Ministry of Construction and the State Bank of Vietnam were the two ministries which released the figure of 200 trillion dong, affirming that the real estate credit is not a worrying problem. Also according to the council, the actual bad debts of commercial banks are 8 times higher than the figures released by the banks themselves. This shows that since June 2011, when the bank bad debt problem … [Read more...] about Banks’ bad debts to real estate sector worse than initially reported
HCMC asked to propose tax debt write-offsMinh Tam HCMC – Deputy Minister of Finance Do Hoang Anh Tuan has asked HCMC to petition the National Assembly (NA) to write off the tax debts owed by long-disbanded enterprises. At a mid-year review conference of the HCMC Tax Department last week, Tuan said the ministry had asked for removal of these debts but had come under criticism. He said a staggering VND22 trillion (US$967 million) in taxes had not been paid as of June 30, with around VND10 trillion from operational production and business activities, and the remainder from those having already gone bankrupt or been dissolved in 2006-2007, when interest rates shot up to 18-20% a year. This means VND12 trillion in tax debt is uncollectible. “HCMC can ask the National Assembly to write off this debt,” Tuan said at the conference, which was also attended by HCMC vice chairman Tran Vinh Tuyen. Tran Ngoc Tam, director of the city’s Tax Department, said the department has … [Read more...] about HCMC asked to propose tax debt write-offs
Vietnam's real public debt may make up 98.2% of the national GDP, factoring in state-owned enterprise debts, which are not guaranteed by the government, as well as debt of the fundamental construction area. Dr. Anh cited a report submitted by the government to the National Assembly recently, which said that the total debts of wholly state-owned enterprises (SOEs) were estimated at VND1,550 trillion (USD73.8 billion) in late 2012, equal to around 52.5% of GDP. After deducting the rate of 11.7% of the debt guaranteed by the government, 40.9% of the SOEs are not guaranteed. Despite not receiving the government guarantees, the government still has to support SOEs when they make losses to save them from bankruptcy. He cited some typical examples, such as the USD600 million debt owed by Vietnam Shipbuilding Industry Group (Vinashin) and the debt worth thousands of billions of VND by Dong Banh Cement Company. If the SOE debts, which are not guaranteed by the government, as well as the … [Read more...] about Public debt may account for over 98% of GDP