More state agencies in Vietnam have been reported to face debts after overspending their allocated state budget.

Last week, local newspaper published articles about a VND310 million (USD14,760) debt of the northern province of Hai Duong's Party Committee Inspection Commission to local restaurants and hotels. The committee has had to send a document to the provincial people's committee to ask for an urgent subsidy for the debt settlement.

Many state agencies in Vietnam continue frivolous spending 

In the document, the commission said that "Since the beginning of the year, the provincial inspection commission has welcomed many representatives from other provinces such as Hau Giang, Dong Nai, Lam Dong and Quang Ninh who came to exchange co-operation experiences. Despite trying to make savings, we had too many delegations and costs were higher than planned. As a result, the committee owed VND310 million to some local restaurants and hotels, but we don’t have any funds to cover the costs."

Speaking to reporters, Nguyen Manh Hien, Secretary of Hai Duong Province's Party Committee, said that these were restaurants and hotels which were well-known to the staff from the inspection commission, so they agreed to wait for payment.

If only the Hai Duong Inspection Commission had known to balance the budget suitably. For the limited budget, instead of booking expensive hotels and restaurants for the guests, they could invite them to the province's guesthouse which is still new with quite modern facilities. Instead of costly parties at restaurants, the guests could be served at the provincial guest-house's kitchen.

Hai Duong Inspection Commission’s debts have shocked the public as the province is seen as one of the more developed localities in the northern region.

Not only Hai Duong, but also some other localities have faced the same problem over the recent years. For instance, Phong Dien District in the Mekong Delta city of Can Tho, has incurred a VND500 million debt for its commendation and rewards. The money is various rewards to 219 organisations and 605 individuals in the city for their contributions. Phong Dien District's total rewards are expected to climb to VND1.35 billion by the end of this year.

By the end of 2015, the southern city of Ca Mau reported a debt of VND300 billion (USD14.2 million) and claimed it couldn't afford to pay the salaries of local state employees. The city owes debts to several contractors which carried out local infrastructure projects, the provincial Social Insurance and some local companies. Meanwhile, the failure to fulfil the budget revenue target added to the city’s fiscal pressures.

Bac Lieu Province is also in the same situation and has racked up tens of billions of VND in back payments to the provincial Social Insurance and local companies.

Following the case of Bac Lieu and Ca Mau, the Ministry of Finance has sent an official document to cities and provinces nationwide, asking them to reduce the budget spending on holding conferences, overseas trips and buying expensive cars.