A newly-built street in Ho Chi Minh City. Photo: Diep Duc Minh
Vietnam is controlling its public debt very well and borrowings from foreign partners have been spent effectively, Prime Minister Nguyen Tan Dung said last week.
He made the remarks at a meeting with Tomoyuki Kimura, Asian Development Bank’s outgoing country director in Vietnam, on June 18.
In March, the bank, which had provided financial assistance worth of US$13.91 billion for Vietnam as of last December, warned that the country’s public debt may remain high. It said that the state's budget deficit is expected to expand amid limited revenue collections.
“Official development assistance is a very important source of funding for Vietnam,” local media quoted Dung as saying at the farewell meeting with Kimura, who is soon finishing his term.
“It is managed and spent effectively on the country’s development goals, especially on economic and social infrastructure, poverty reduction, and human resources training,” he said.
Vietnam’s public debt was equal to 60.3 percent of gross domestic product at the end of last year, up from 54.2 percent in 2013, according to the government’s latest report.
The target is to keep the ratio under 65 percent in the next five years.