VietNamNet Bridge - One of the controversial points in the draft plan on restructuring the national economy in the 2016-2020 period drafted by the Ministry of Planning and Investment is the use of the state’s money to settle commercial banks’ bad debts. The proposal has not been applauded by experts who believe that it is unfair to ‘use public money for private business’. Duong Quoc Anh, deputy chair of the National Assembly’s Economics Committee, said he has not received any report on the issue. However, he said, in principle, credit institutions have to settle their bad debts themselves. If they cannot do this, they will sell the bad debts to the state at market prices. “In Vietnam, the bad debt treatment is going this way,” Anh commented. One of the controversial points in the draft plan on restructuring the national economy in the 2016-2020 period drafted by the Ministry of Planning and Investment is the use of the state’s money to … [Read more...] about Ministry proposes to use state money to settle banks’ bad debts
VietNamNet Bridge – The State Audit Office of Viet Nam (SAOV) has announced the official figure of the 2014 public debt at more than VND2.28 quadrillion (US$102.7 billion), yet hinting that it might have reached higher than that. Viet Nam’s public debt as of December 31, 2014 was equal to 58.02 per cent of the national gross domestic product (GDP) the same year, SAOV told the press this morning. The public debt quickly increased by 17.1 per cent or VND333.3 trillion compared to 2013, according to the SAOV audit report. Ye the audit authorities also said that the Ministry of Finance which was in charge of tracking the public debt, failed to provide sufficient documents and evidence for it to confirm the colossal $102.7billion debt as the final number or not. “Though the audited public debt index was generally in line with the Law on Public Debt Management, its content could very well be repeated or yet to fully record all the Government’s debts,” said the … [Read more...] about Vietnam’s 2014 public debt reached $102 billion: State audit
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?
VietNamNet Bridge - Chair of the board of directors of the Bank for Investment and Development of Vietnam (BIDV) Tran Bac Ha said the government has decided to restructure of debts of the Hoang Anh Gia Lai Group. Zing.vn has quoted BIDV’s Ha as saying that the commercial banks that are creditors of Hoang Anh Gia Lai have been asked to help debt restructuring. "It is the government, not me, which decided to restructure some debts for Hoang Anh Gia Lai," Ha told reporters on the sidelines of the conference on promoting tourism and investment in Lai Chau province on April 23. Hoang Anh Gia Lai Group is owned by Doan Nguyen Duc, one of Vietnam's most influential businessmen. The group’s financial report showed that its accounts payable have reached VND27.099 trillion, which included VND8.297 trillion is due in 2016. Of the total debts by December 31, 2015, short-term debts accounted for 31 percent. The group’s financial report showed that its accounts payable … [Read more...] about What does the biggest creditor say about Hoang Anh Gia Lai’s debts?
Nhan Dan/VNA - Deputy Prime Minister Vu Van Ninh has asked the Ministry of Finance to keep public debt under strict control, although it remains within the safe limit, adding that the use of loans must be closely managed to achieve the highest efficiency. Addressing the ministry's conference in Hanoi on July 4, which reviewed its performance in the January-June period and set tasks for the second half of the year, the deputy PM instructed the sector to review 2014 budget estimates and make forecasts on possible financial resources that can be mobilised when necessary. In addition, the ministry should make recommendations to the government and local authorities for drafting out emergency response plans and expanding economic and trade relations. Deputy PM Ninh also required the ministry to intensify inspection of the implementation of financial policies and regulations, as well as market and price management. Finance Minister Dinh Tien Dung said the ministry would continue to … [Read more...] about Finance ministry urged to keep public debt under strict control
The National Assembly's Economic Committee warns Vietnam is at high risk of a public debt crisis even as the government seeks to raise the debt ceiling saying it is well within safety limits. In a report published early this week, the parliamentary committee said that Vietnam needs to manage SOEs and their debts better, as ineffective businesses with bad debt pose a serious threat to the country's financial security. It quoted the Ministry of Finance as saying Vietnam's public debt accounted for 40 percent its GDP in 2007, increased to 54.9 percent in 2011 and was estimated at 55.4 percent in 2012. Given that international organizations like the World Bank and the International Monetary Fund (IMF) maintain 60 percent as safe, Vietnam's national debt is still within safe limits, it can be argued. However, the figures do not "truly" reflect the country's situation, the committee said. It said Vietnam's regulations exclude SOEs' debts from the public debt, except for those which are … [Read more...] about Vietnam public debt could get out of hand: house committee
Public debt under control, finance ministry says The Saigon Times Daily HCMC – The Ministry of Finance said in a report released on Thursday that Vietnam’s public debt, which stood at 56.3% and 54.9% of the nation’s gross domestic product (GDP) in 2010 and 2011 respectively, is under control, according to the Government web portal (chinhphu.vn). Foreign debt accounted for 42.2% of GDP in 2010 and 41.5% in 2011 while the ratio of government debt was 44.6% and 43.2% respectively. Government debt was 17.6% of State budget collections in 2010 and 15.6% in 2011. In the strategy for public and foreign debts in the 2011-2020 period, the country looks to curb public debt, including government debt, government-guaranteed loans and municipal debt, at less than 65% of GDP by 2020. Government debt will be curbed at 55% and foreign debt at 50%. The Government’s direct debt obligations (excluding those loans relent) must not exceed 25% of the annual State budget … [Read more...] about Public debt under control, finance ministry says
ADB unconcerned about Vietnam public debt By Van Oanh - The Saigon Times Daily HANOI – The Asian Development Bank (ADB) has said it is not concerned about Vietnam’s public debt at the moment despite the recent Standard & Poor’s lowering of the country’s credit rating. Rajat M. Nag, managing director general of the regional lender, told reporters during the ADB’s annual meeting in Hanoi on Wednesday that the ADB was paying attention to how aid was being used. If official development assistance loans are effectively used to develop projects like infrastructure to fuel the country’s growth, there would be no need to worry about, he said. Commenting on the possible spread of the eurozone public debt crisis to Asia, especially emerging economies, he said that in an increasingly connected world, he did not rule out this possibility. But he noted the Asian economies had learned some lessons from the 1997-98 financial and economic crisis, so they had … [Read more...] about ADB unconcerned about Vietnam public debt
Vietnam's public debt will probably be higher than estimated, as the Ministry of Finance has missed including in its calculations several kinds of debt related to the government, lawmakers said at the National Assembly's meeting on Friday. According to the National Assembly's Finance and Budget Committee, their review showed that the country's public debt will rise to stand at 58.9 percent of the Gross Domestic Product (GDP) as of this year end which is higher than the finance ministry's estimate of 54.6 percent. The ministry didn't include the bonds that the government issues every year, estimated to be worth VND40 trillion (US$1.9 billion) on average, the committee said. The loans of state-owned companies are also worrisome, it said. Although the law on public debt management only targets loans guaranteed by the government, it is obvious that when state-owned companies go bankrupt no one except the government will have to pay their debts, the committee said. Rep. … [Read more...] about Lawmakers worried about Vietnam’s public debt
Though the Vietnamese government has affirmed that its public debt is within a safe area, there are some signs showing the increasing “heat” of public debt in qualitative and quantitative analysis, with some notable features as follow. Firstly, the scale of public debt quickly grows, exceeding anticipation. According to the Finance Ministry’s report on public debt, by December 31, 2009, Vietnam’s public debt was VND27.929 billion, including over $23.9 billion of foreign debt. By December 31, 2010, Vietnam’s total public debt reached more than $32.5 billion, accounting for 42.2 percent of the country’s gross domestic product (GDP), compared to the government’s anticipated level of 38.8 percent in late 2010, a growth of $4.6 billion over 2009. This was the highest number since 2005. Of the number, 62 percent was the government’s foreign debt and 38 percent was foreign debt of businesses. For the government’s foreign debt, 93 … [Read more...] about Vietnam’s public debt is safe?