Vietnam Plans $37B Loan for 2026 Budget

Photo courtesy of VN Express

Vietnam plans to borrow nearly VND970 trillion (US$37 billion) in 2023, a substantial increase from last year's projections. The Ministry of Finance outlined that the majority of this sum will address the State budget deficit, while the remainder covers principal debt repayments. This move indicates Vietnam's strategy to balance its financing needs and maintain debt safety.

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The principal funding source will be domestic government bond issuance, aiming to raise approximately VND500 trillion through the Hanoi Stock Exchange auctions. This approach is designed to bolster the domestic capital market's stability and proactiveness. Total debt repayments for the year are estimated to exceed VND530 trillion, with direct government debt repayment accounting for more than VND490 trillion.

The Ministry of Finance projects that public debt safety indicators will stay within permissible limits. For example, the public debt-to-GDP ratio should remain between 35–36%, well below the 60% ceiling, while the government debt-to-GDP is forecasted at 33–34%, under the 50% cap. Additionally, direct government debt repayment obligations are expected to be within 20–21% of State budget revenue, under the 25% warning threshold.

Experts note that Vietnam's debt portfolio remains effectively managed, with an average maturity of 9.1 years and a weighted average interest rate of roughly 3.1%. This reflects a commitment to safe and sustainable public debt management. The annual release of the borrowing and repayment plan is part of Vietnam's effort to conform to global best practices in debt management.

Looking forward, public debt safety and effective financing will remain priorities for Vietnam, with ongoing evaluations to ensure alignment with economic growth and stability targets. Continued monitoring and strategic adjustments will likely be employed to address any emerging economic challenges.

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  Adapted by ASEAN Now · VN Express · 28 Apr 2026