Vietnam's government to borrow over $132 billion by 2020: report

Thanh Nien News

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An employee at a local bank branch in Hanoi. Photo: Ngoc Thang An employee at a local bank branch in Hanoi. Photo: Ngoc Thang

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The government will need to borrow more than VND3,000 trillion (US$134.3 billion) over the next five years, about half of which will be spent on repaying existing debt, news website VnEconomy reported on Tuesday. 
Most of the other half will help cover the state budget's deficit, the website said, citing a government report prepared for legislators, who started their year-end session the same day. 
The government expected its budget deficit to fall from 5 percent of gross domestic product at the moment to 4.8 percent by 2020.
Further details on the borrowing plan are not available but the government has recently said it will issue bonds on international markets and try to attract more debt investors by diversifying bond terms, instead of focusing on long-term borrowings. 
Officials have also promised to improve their management of public debt. 
In its report, the government said the country's ratio of public debt to GDP will remain within the safety limit of 65 percent by 2020, and that its foreign debt will not exceed 50 percent of GDP.
The government targeted an average economic growth of 6.5-7 percent a year over the next five years. Its GDP is expected to reach VND34,250 trillion ($1.51 trillion) by 2020, or $3,670-3,750 per capita.

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