Vietnam is expected to pay off more than US$1 billion of its foreign debt, including interest, this year. The figure will continue to surge in the next six years, a news report said Monday.
Annual foreign debt repayment could reach $2 billion and may fall gradually after 2016, local news website VietNamNet reported, citing estimates by experts at the Ministry of Finance.
Vietnam's foreign debt ratio through the end of last year has risen to 39 percent of GDP, the highest level since 2005, according to the Finance Ministry. Total external debt, including government's debt and other loans guaranteed by the government, amounted to $27.9 billion. The ministry said the debt was still at a safe level.
Most of the loans are low interest ones. Aid-related credit like Official Development Assistance accounts for 74.6 percent of the total foreign debt, the report said.