VietNamNet Bridge – Vietnam’s public debt rose by about 12.2%, from 50% of GDP in 2011 to 62.2% at the end of 2015. Admitting the rapid increase of public debt, the Ministry of Finance (MOF) has confirmed that the structure of Vietnam's public debt is gradually being adjusted towards more sustainability with the ratio of foreign debt declining. Mr. Vo Huu Hien, Deputy head of the Debt Management and External Finance Department of the MOF, said the structure of public debt of Vietnam by the end of 2015 included: government debt accounting for 80.8%, Government guaranteed debt 17.8%; and local government debt 1.4%. In the government debt structure, the part of domestic debt rose from 39% in 2011 to 57% in 2015 while the proportion of foreign debt decreased from 61% in 2011 to 43% in 2015. Hien affirmed that such development is consistent with the national strategy on public debt and external debt in the 2011-2020 period and the vision to 2030. According to Hien, the … [Read more...] about What does the Finance Ministry say about Vietnam’s public debt structure?
As a developing country which is integrating in the international economy, Vietnam increasingly needs investment for development. Public debts are still important financial sources to offset state budget deficit for economic growth and sustainable development. Public debt effectiveness depends largely on policies of debt management. As a developing country which is integrating in the international economy, Vietnam increasingly needs investment for development. Public debts are still important financial sources to offset state budget deficit for economic growth and sustainable development. Public debt effectiveness depends largely on policies of debt management. Concept of public debts In the context of rigorous development of the world economy with unprecedented changes, typically the global economic crisis in late 2008 and early 2009 and the public debt crisis in Greece which has spread to other European countries, public debts and public debt management have become a hot … [Read more...] about Improving public debt management
The unexpected report about the banks’ bad debts to the real estate sector has been released by the National Finance Supervision Council, which shows that the actual bad debts are much higher than the figures announced before by government agencies. By the end of 2011, the total outstanding loans provided to fund real estate projects had reached 348 trillion dong. The figure, according to the National Finance Supervision Council, is 1.8 times higher than the figure released by commercial banks before, at 200 trillion dong. The Ministry of Construction and the State Bank of Vietnam were the two ministries which released the figure of 200 trillion dong, affirming that the real estate credit is not a worrying problem. Also according to the council, the actual bad debts of commercial banks are 8 times higher than the figures released by the banks themselves. This shows that since June 2011, when the bank bad debt problem was alerted and banks were told to reduce the proportion … [Read more...] about Banks’ bad debts to real estate sector worse than initially reported
Vietnam Electricity Group, the country’s monopoly power supplier, has yet to repay its VND10 trillion (US$487.8 million) debt to two other state-run enterprises despite repeated urging by the creditors since April. At a meeting held by the Ministry of Industry and Trade in Hanoi yesterday, the Vietnam National Oil and Gas Group (PetroVietnam) and the Vietnam National Coal and Mineral Industries Group (Vinacomin) sought the ministry’s intervention in the affair. Nguyen Van Bien, Vinacomin’s deputy CEO, said his company would face difficulty in operating its power generators if EVN did not pay up. “EVN owes Cam Pha thermal power plant VND1 trillion and the plant needs the money for its operation,” he said. Vu Quang Nam, PetroVietnam’s deputy CEO, said EVN owed large sums to two of its subsidiaries, PetroVietnam Oil Corporation and PetroVietnam Gas. In July PetroVietnam asked the government to persuade EVN to repay its debts, … [Read more...] about EVN remains in debt to PetroVietnam, Vinacomin
About 31.4 trillion VND (1.38 billion USD) was used in building new-style rural areas in 2017, heard a conference held by the Central Coordination Office on New Rural Development on January 8. About 31.4 trillion VND (1.38 billion USD) was used in building new-style rural areas in 2017. As a result, 2,884 communes or 32.3 percent of communes nationwide were recognised as new-style rural areas, surpassing the target of at least 31 percent.Of the total, 326 communes have met the new national criteria on new rural communes during 2016-2020.Besides, 43 district-level units in 24 centrally-run cities and provinces have been certified as new rural areas, up 13 districts compared with the end of 2016 and exceeding the target of 38.The General Statistics Office revealed that as of the end of 2016, 99.4 percent of communes nationwide have auto-accessible roads to commune centres. All communes and 97.8 percent of villages are connected with the national power grid. Meanwhile, 99.7 … [Read more...] about $1.38bil. used in new-style rural area building