Hanoi (VNA) – Deputy Prime Minister Ho Duc Phoc has signed a decision to approve the 2025 public borrowing and debt repayment plan and the three-year public debt management programme for 2025–2027.
The plans aims to ensure full and timely repayment of public debt without affecting Vietnam’s sovereign credit rating, while continuing to restructure the Government bond portfolio in line with market conditions and development needs. They also seek to diversify borrowing channels both domestically and internationally to balance the state budget and support socio-economic development, with foreign capital prioritised for large and strategic projects.
Under the plans, authorities will exercise strict monitoring to keep debt safety indicators within the approved ceilings, promote the development of the domestic capital market, and maximise official development assistance (ODA) and foreign concessional loans.
Regarding the 2025 public borrowing and debt repayment plan, government borrowing is capped at 815.238 trillion VND (30.86 billion USD), including up to 443.1 trillion VND to cover the central budget deficit, 361.1 trillion VND for debt repayment, and nearly 11 trillion VND for on-lending. Borrowing will be sourced mainly from Government bonds, ODA and foreign concessional loans, and other lawful financing channels.
Government debt repayments are capped at 506.949 trillion VND, of which direct obligations of the Government account for 468.5 trillion VND, and repayments for on-lent projects total 38.4 trillion VND.
The plan sets no government guarantee for domestically issued bonds of the Vietnam Development Bank in 2025, while allowing the Vietnam Bank for Social Policies to issue up to 10.5 trillion VND in guaranteed domestic bonds.
Local administrations are allowed to borrow up to almost 31.8 trillion VND in 2025, with 3.3 trillion VND allocated for principal repayment and 3.1 trillion VND for interest and fees.
Vietnamese enterprises and credit institutions without government guarantees may take on the maximum of about 5.5 billion USD in medium- and long-term foreign commercial loans, and short-term external debt is expected to rise 18–20% from the end-2024 levels.
Public debt management for 2025–2027
For the 2025–2027 period, total government borrowing is capped at 2.218 quadrillion VND, including 2.18 quadrillion VND for the central budget and 35 trillion VND for on-lending from ODA and foreign concessional loans.
Debt repayments during the three years are capped at 1.346 quadrillion VND, comprising 1.2 quadrillion VND in direct obligations and 120 trillion VND in on-lent debt.
The plan requires full and timely repayment of government obligations to avoid overdue debt and ensure Vietnam’s fulfilment of international commitments.
The ceiling for government guarantees over the period includes up to 14.16 trillion VND for the Vietnam Development Bank. Guarantees for the Vietnam Bank for Social Policies will depend on actual debt recovery of credit packages under the socio-economic recovery and development programme.
The decision also stresses strict control over local government debt, compliance with the State Budget Law, and accelerated disbursement of public investment. Ministries, agencies, and localities are tasked with monitoring, auditing, and reporting on debt management to ensure efficiency, thrift, and transparency./.
World Bank commends Vietnam’s public debt management performance
The Public Debt Management Performance Assessment (DeMPA) includes 15 indicators grouped into key debt management functions, such as governance, strategy development, borrowing activities, cash flow forecasting, and risk management. The performance is rated on a scale from A (best practices) to D (requirements not met), with C indicating minimum standards.
