JavaScript is off. Please enable to view full site.

Vietnam’s government debt rises by over $17bn in 11 months

Vietnam’s government debt rises by over $17bn in 11 months

Friday, December 09, 2016, 17:31 GMT+7

Vietnam’s government has borrowed a total of nearly VND400 trillion (US$17.86 billion) from both domestic and foreign sources in the Jan-Nov period of this year, the Ministry of Finance said in a recent report.

In the 11 months to December, the government had closed a total of 34 foreign loan deals, collectively worth $5.1 billion, while domestic debt, raised via almost 30 bond issuances, reached VND274.5 trillion ($12.25 billion), according to the report.

The government’s accrued debt this year therefore totaled some VND389 trillion ($17.37 billion).

The bond-issued capital was 43.8 percent higher than during the same period last year, the ministry noted, adding that the bonds had an average term of just over 8.5 years.

While the ministry keeps the specific interest rates for each bond program private, data gathered by Tuoi Tre (Youth) newspaper reveal that the rates range from 5.2 percent to 6.2 percent per year. The bonds issued on November 11 included an interest rate as high as 6.4 percent per year.

The ministry said most of the bond buyers were commercial banks, a trend local financial experts said is normal given that credit institutions have strong liquidity and need avenues to place their abundant capital.

Government bonds are also a risk-free investment option, with acceptable interest rates, the experts added.

The finance ministry said in the report that some $3 billion in debt had been disbursed as of November 18, with the government earmarking a further $1.4 billion in debt repayments by the end of last month.


Read more

​Are you warm enough, Hoi An?  

I know it’s the rainy season but look at the locals in Hoi An, a small town in central Vietnam, they think it’s the beginning of a three-month Ice Age

3 years ago

Vingroup wins double awards with Hanoi property

Vingroup, the Vietnamese property conglomerate behind many deluxe trade centers and residential developments, has been honored in two categories of the prestigious International Property Awards 2015.

6 years ago



Vietnam’s Mekong Delta celebrates spring with ‘hat boi’ performances

The art form is so popular that it attracts people from all ages in the Mekong Delta

Vietnamese youngster travels back in time with clay miniatures

Each work is a scene caught by Dung and kept in his memories through his journeys across Vietnam

Experience summer sand-boarding in Mui Ne

Sand-boarding, a popular activity amongst local children in the coastal tourism town of Mui Ne in south-central Vietnam, is attracting hundreds of tourists to the Red Sand Dunes

Young maple trees given better protection as Hanoi enters rainy season

The trees are currently growing well, with green leaves and healthy branches.

Hunting skinks for food in southern Vietnam

Skink meat is known to be soft, tasty, and highly nutritious.

Latest news