Vietnam’s public debt will likely reach VND3,530 trillion (US$152.38 billion), or 63.92 percent of GDP, by the end of 2018, the Ministry of Planning and Investment said in a recent report.

The projected figure is up from the previous rate of 61.3 percent GDP in 2017 and translates into around VND35 million ($1,500) per citizen.

Compared to last year, per capita public debt has risen by almost VND4 million ($150), from VND31.3 million ($1,350) to VND35 million ($1,500).

The report, which focuses on attracting, managing and using official development assistance (ODA) over the next three years, notes how Vietnam’s public debt will peak in 2018 before dropping slightly to 63.46 percent of GDP in 2019 and 62.58 percent of GDP 2020.

Central government debt is predicted to reach over VND2,900 ($125.19 billion) this year, making up more than 82 percent of public debt, the report says.

Government-backed debts and provincial debts are estimated to total VND559 trillion ($24.13 billion) and VND73 trillion ($3.51 billion) this year, respectively.

Budget overspending will sit at 3.71 percent of GDP in 2018, 3.59 percent in 2019 and 3.4 percent in 2020, the report projects.

In absolute values, public debt in Vietnam will increase by around VND360-380 trillion ($15.54-16.4 billion) yearly over the next three years, to more than VND3,900 trillion ($168.36 billion) in 2019 and nearly VND4,300 trillion ($185.62 billion) in 2020.

The debt forecast is based on the scenario that Vietnam will post a 6.53-percent growth in GDP in 2018 and an inflation rate of under four percent.

The ministry notes that while public debt safety indicators remain under control, Vietnam’s public debt is approaching the debt ceiling of 65 percent of GDP set by its parliament.

Demand for socio-economic development is among factors putting pressure on Vietnam’s rising public debt, it points out.

Meanwhile, as Vietnam transitions from a low-income country into a middle-income one, favorable foreign loan packages also become limited, leading to an increase in costs of capital mobilization.