Public debt has increased in recent years, but remains within the safety zone set by the National Assembly.
Vietnam's public debt remains within the safety zone
In a report issued by the NA last October, Prime Minister Nguyen Tan Dung said that public debt would account for 60.3% of GDP by late 2014, compared to 51.7% in 2010. This rate is expected to reach 64% by the end of the year.
According to the PM, the total public debt would account for 64.9% of GDP in 2016, a record high. However forecasters expect it to fall to 60.2% of GDP in 2020.
Prime Minister Dung added that, despite the annual increases, public debt is still at a safe level, as it has not reached 65% of GDP, the limit set by a National Assembly resolution.
Nguyen Duc Kien, vice chairman of the National Assembly's Committee for Economic Affairs, said that, although Vietnam always discloses public its debt, there has been concern about the accuracy of its reported figures.
Inaccurate accounting of public debt would affect the government's ability to take measures in dealing with the problem and possibly forestall needed actions which might be spurred on by increased pressure to settle debts. Faulty figures could also blindfold public servants as to their responsibility in dealing with a looming problem.
According to The Economist's Global Debt Clock, Vietnam’s public debt was estimated at more than USD86.267 billion as of December 28, or 47% of the country’s GDP. If this were spread out evenly, each Vietnamese citizen would owe USD950.62, a figure which is up 10.3% from last year.
