Vietnam plans to borrow 108.03 trillion dong (US$4.74 billion) from foreign sources this year, a statement posted on a government website said on Monday.

The money, along with 275.97 trillion dong the government seeks to borrow from domestic sources this year, will be used to repay government debts and compensate for Vietnam's budget deficit, the statement said.

Vietnam has incurred a persistent budget deficit because the country's budget spending often outweighs revenue as it funds grand infrastructure projects to support an economic growth that is among the highest in Asia.

The statement, which cited a decision signed over the weekend by Prime Minister Nguyen Xuan Phuc, did not name any potential foreign lenders or provide comparative figures.

It said the government plans to make debt repayments totalling 256.77 trillion dong this year.

Last year's state budget was estimated at 115.5 trillion dong, compared with an estimated deficit of 192.2 trillion dong a year earlier, according to government data.

The government will provide guarantees for local companies to take foreign commercial loans of up to $700 million, it said, adding that the government also sets a limit that domestic companies and banks can borrow from foreign lenders this year at $5 billion.

(US$1 = 22,769 dong)

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