More than VNĐ959 billion of the loan will be set aside for the central budget balance. — Photo baochinhphu.vn

HÀ NỘI — The Government has approved a plan to borrow a maximum of nearly VNĐ970 trillion ( nearly US$37 billion) and repay debts worth some VNĐ535 trillion ($20.33 billion) this year.

Under Decision No. 352/QĐ-TTg approving the public debt borrowing and repayment plan for 2026 signed by Deputy Prime Minister Hồ Đức Phớc on Friday, more than VNĐ959 billion of the loan will be set aside for the central budget balance, and the remaining of VNĐ10 billion will be used for on-lending.

The loans are expected to come from government bond issuance, ODA loans, preferential foreign loans, international bond issuance, and other legitimate financial sources.

Under the decision, the Deputy PM also directs the Ministry of Finance to closely monitor the State budget deficit, government borrowing levels of localities, and the government's debt repayment obligations.

Besides developing a plan for issuing international bonds to submit it to competent authorities for readiness when needed, the ministry must also research new methods of raising loans to ensure sufficient capital for development investment while simultaneously controlling public debts and national foreign debts within the projected cap in the 2026-2030 period.

“Maturities and time for government bond issuance must be flexible managed to contribute to reducing costs, easing the pressure on State budget capital mobilisation, and meeting mobilisation and contingency needs during unfavourable market conditions,” the decision states.

In addition, the ministry needs to actively expand the revenue base and save State budget expenditures to reduce the State budget deficit and increase debt repayment.

Meanwhile, the State Bank of Vietnam is required to strictly control the implementation of the self-borrowing and self-repayment foreign debt limit for enterprises that are not guaranteed by the Government, ensuring it remains within the approved limit.

Besides presiding over the management of foreign debts of the private sector, the central bank must also coordinate with the Ministry of Finance to report to the Prime Minister in case of negative developments. — BIZHUB/VNS