The Vietnamese government plans to borrow a maximum of VND815,238 billion (US$33 billion) next year, an increase of 20.6 percent from 2024.

The government made the announcement in its report recently submitted to the eighth session of the 15th National Assembly on the public debt situation in 2024 and the plan for 2025.

The borrowings will include VND804,242 billion ($32.36 billion) for the central budget, a rise of 21.9 percent, while the remaining $0.52 billion will be used for re-lending.

By the end of 2025, Vietnam's public debt, government debt, and external debt are expected to account for 36-37 percent, 34-35 percent, and 33-34 percent of the country’s gross domestic product (GDP), respectively.

The government aims to allocate VND468.54 trillion ($18.86 billion) for debt repayments, amounting to around 24 percent of budget revenue, including VND361.14 trillion ($14.56 billion) for principal repayments and VND107.4 trillion ($4.3 billion) for interest payments.

Meanwhile, the obligation to repay the national external debt, excluding principal payments due within 12 months, will account for 7-8 percent of the export turnover of goods and services, which remains within the limit set by the National Assembly.

The borrowings will take the form of bonds, official development assistance (ODA) and preferential loans, and other sources if necessary.

As for guarantees on domestic and foreign loans for enterprises, the government is not expected to issue any new guarantees in 2025.

In its report, the government emphasized the need to implement effective public debt management solutions and ensure that borrowing and repayment activities are conducted according to approved plans.

The government also underscored the need to amend and supplement the Law on Public Investment, the Law on State Budget, and related legal documents to promote decentralization and simplify relevant procedures.

Every borrowing loan and debt repayment must be conducted in compliance with current laws and regulations, the government said.

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