Of the total planned borrowing, around 60 per cent will be used to cover the State budget deficit, while the remainder will go toward principal debt repayment. — Photo baochinhphu.vn

HÀ NỘI — Việt Nam is expected to mobilise nearly VNĐ970 trillion (US$37 billion) this year, almost 20 per cent higher than the level set in last year’s public borrowing and debt repayment plan, as the Government moves to balance financing needs with debt safety.

Of the total planned borrowing, around 60 per cent will be used to cover the State budget deficit while the remainder will go towards principal debt repayment, according to the public borrowing and debt repayment plan for this year accounced by the Ministry of Finance.

The main funding source this year will be domestic government bond issuance, with an estimated volume of VNĐ500 trillion to be raised through auctions at the Hà Nội Stock Exchange. This is expected to help ensure proactiveness and stability in the domestic capital market.

Regarding debt obligations, total repayments are estimated at over VNĐ530 trillion this year, including more than VNĐ490 trillion in direct government debt repayments, with the remainder allocated to on-lending obligations.

The Ministry of Finance said public debt safety indicators are projected to remain within permitted thresholds and well below statutory ceilings.

For instance, the public debt-to-GDP ratio is estimated at around 35–36 per cent, significantly lower than the 60 per cent ceiling, while government debt-to-GDP is projected at 33–34 per cent compared with the 50 per cent cap.

Direct government debt repayment obligations are expected to account for 20–21 per cent of State budget revenue, below the 25 per cent warning threshold.

In addition, the debt portfolio remains well managed, with an average maturity of 9.1 years and a weighted average interest rate of around 3.1 per cent, reflecting overall safety and sustainability in public debt management.

According to the Ministry of Finance, the annual disclosure of the public borrowing and debt repayment plan helps the country align more closely with international best practices in debt management. — VNS