Vietnam should prioritize domestic borrowing over foreign to fund recovery: expert

Workers at a garment factory in Ho Chi Minh City, October 2021. Photo by VnExpress/Quynh Tran

Vietnam should mobilize resources internally to fund economic recovery instead of getting foreign loans, a former acting chairman of the National Financial Supervisory Commission says.

To have enough resources to support the economy, the country needs to diversify its methods, mobilizing public money, borrowing from foreign financial institutions and temporarily using unspent investment money and foreign exchange reserves like other countries have done for their economic stimulus program, former acting chairman of the National Financial Supervisory Commission Truong Van Phuoc said.

However, at this time, mobilizing domestic resources in both dong and foreign currencies is the optimal solution. "Issuing domestic bonds will help us repay principal and interest more proactively."

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