The Government will mobilise funds through government bonds, official development assistance (ODA), concessional foreign loans and other legal financial sources if necessary. — VNA/VNS Photo

HÀ NỘI — The Government plans to borrow nearly VNĐ969.8 trillion (US$38.5 billion) in 2026, a 19 per cent increase from this year's borrowing plan, according to a report by the Government to the National Assembly.

The figure includes VNĐ959.7 trillion for the central budget to cover deficits and principal repayments, plus foreign loans for on-lending purposes.

The Government will mobilise funds through government bonds, official development assistance (ODA), concessional foreign loans and other legal financial sources if necessary.

Public debt is forecast to reach 36-37 per cent of GDP by the end of 2026, while government debt will stand at 34-35 per cent of GDP. Foreign debt is expected at 32-33 per cent of GDP.

All figures remain well below ceilings set by the National Assembly.

The Government estimates it will raise VNĐ802.7 trillion in 2025, or 98.5 per cent of the approved plan. Debt repayment for 2025 is projected at VNĐ506.9 trillion as planned, including VNĐ468.5 trillion in direct government debt service and VNĐ38.4 trillion for on-lending project repayments.

Total debt service obligations in 2026 are estimated at VNĐ534.7 trillion. Direct government debt repayment will reach VNĐ493.4 trillion, equivalent to 20-21 per cent of State budget revenue. This includes VNĐ376 trillion in principal and VNĐ117.4 trillion in interest payments.

Domestic debt will account for 87 per cent of direct government debt service, with the remainder for ODA and concessional foreign loan repayments. Interest payments will be allocated from the State budget, while principal repayments will come from new domestic borrowing.

The Government said public debt management has been conducted proactively and effectively, meeting development investment needs. All debt indicators remain within safe thresholds approved by the National Assembly.

Việt Nam's debt sustainability targets, set by Resolution 23/2021/QH15, require public debt to stay below 60 per cent of GDP, government debt below 50 per cent of GDP and national foreign debt below 50 per cent of GDP.

Direct government debt service must not exceed 25 per cent of total State budget revenue, while national foreign debt service should remain under 25 per cent of total exports of goods and services.

The report outlined measures to strengthen public debt management, including accelerating disbursement of borrowed funds, improving capital efficiency for major national projects, expanding revenue sources and enhancing risk management through international best practices and improved debt database systems. — BIZHUB/VNS