Prime Minister Nguyen Tan Dung laid out a series of measures to dealwith public debt and bad banking loans by 2020 in his address tolawmakers in Hanoi on November 19.
Prime Minister Nguyen TanDung told deputies that public debt grew from 51.7 percent of GDP in2010 to 60.3 percent in late 2014. It is predicted to account for 64percent of GDP in 2015, and it will reach 64.9 percent of GDP in 2016which is still within the limit of 65 percent of GDP set by the NationalAssembly. The rate will then start reducing in the following years.
By 2020, the amount of public debt should be reduced to 60.2percent of GDP, and Government debt should account for no more than 46.6percent of GDP (less than 55 percent of GDP, as regulated), added thePM.
In order to cut public debt to 60.2 percent of the grossdomestic product (GDP) and spend approximately 20 percent of the totalState budget on debt repayments by 2020, the Government vowed torestructure and closely monitor its debt portfolio and new loans,including Government- and localities-backed loans.
Debt owedto foreign lenders is expected to account for 39.9 percent and 46percent of GDP in 2014 and 2020, respectively, which is still lower thanthe limit of 50 percent of GDP limit. The amount of foreign debtpayments due in 2014 accounts for 25.9 percent of exports of goods andservices.
The Government will ask the State Bank to closely monitorall short-term loans taken out by credit institutions so that from 2015onwards the rate of foreign debt payment will be brought under theregulated limit of 25 percent of annual exports of goods and services,the PM said.
The expenditure and collection of state budgetshould be revised towards increased domestic revenue collection. TheGovernment aims to increase the contribution of domestic revenue to 80percent of the total budget by 2020.
In the meantime,necessary changes to the Laws on State budget and public debtmanagement, as well as other relevant strategies will be made, making iteasier to meet debt repayment deadlines.
Regarding thesettlement of bad debts, the Government leader said nearly 250 trillionVND worth of non-performing loans (NPLs) had been settled by lateOctober, compared to 465 trillion VND of NPLs in September. This wasachieved by collecting, restructuring or selling NPLs to Vietnam AssetManagement Company (VAMC).
According to the State Bank, therate of NPLs stood at 5.4 percent in late September and is forecast todrop to 3.7-4.2 percent this year, compared to 17 percent in September2012. The total is expected to be within the allowable limits by late2015.
To speed up the process, the Government is set tocontinue fine-tuning legal regulations, including those on the functionand financial capacity of VAMC, while developing a debt market andenhancing inspections in a joint effort between the State Bank,ministries and localities.
Credit institutions will stillundergo restructuring processes, thereby improving their performance andgovernance, Nguyen Tan Dung said.
The government is alsodetermined to improve the standards of its business climate, which areexpected to surpass the ASEAN-6 average in 2015.
To enhancelabour productivity, the government will accelerate agriculturalrestructuring together with building new-style rural areas, introducingnew technologies and equipment, upgrading socio-economic infrastructure,improving the quality of the workforce, fine-tuning policies andexpanding markets.
Ethnic minorities will also benefit from aprogramme on rapid and sustainable poverty reduction, the governmentleader promised.
Reporting on socio-economic performance inOctober and November, as well as socio-economic development plans fornext year, the leader pointed out a 0.2 percent decrease in inflationand a 1.5-2 percent drop in interest rates. During the first 11 monthsof this year, the country earned approximately 137 billion USD fromexports, up by 13.7 percent, while spending 135 billion USD on imports, arise of 12.6 percent.
During the same period, the industrialproduction index surged by 7 percent, higher than the 5.6 percentrecorded last year. More than 67,200 businesses were registered as newoperations, while 23,700 continued their operations, an increase of 7.8percent.
Over 1.46 million jobs were generated, 91.2 percentof the annual target, which marks an increase of 3.87 percentyear-on-year.
Next year, the government will stick to itspackage of goals, including stabilising the macro-economy, improving theinvestment climate, and restructuring and strengthening the economy byshifting to new growth models.
Simultaneously, it will alsoenhance environmental protection and natural resource management whileaccelerating administrative reforms and ensuring political security andsocial order.
Later, Nguyen Tan Dung responded to lawmakers’questions on the Mekong Delta’s economic development, how the nationaleconomy capitalises on maritime resources, and policies benefitingethnic minorities who lack production land.
The Party issued aresolution on maritime strategy and devised an action plan thatensures profitability and national sovereignty over sea and islands,with many promising results recorded so far, he noted.
Inresponse to questions on the Party and State’s policies since Chinaremoved its Haiyan Shiyou – 981 rig from Vietnamese waters, the PM saidVietnam wanted to settle differing views on maritime sovereignty inaccordance with the 1982 United Nations Convention on the Law of the Seaand other agreements reached in the past.
Vietnam’s positionis to firmly protest all acts that run counter to the Declaration on theConduct of Parties in the East Sea, of which China is a signatory, heaffirmed.-VNA
Prime Minister Nguyen TanDung told deputies that public debt grew from 51.7 percent of GDP in2010 to 60.3 percent in late 2014. It is predicted to account for 64percent of GDP in 2015, and it will reach 64.9 percent of GDP in 2016which is still within the limit of 65 percent of GDP set by the NationalAssembly. The rate will then start reducing in the following years.
By 2020, the amount of public debt should be reduced to 60.2percent of GDP, and Government debt should account for no more than 46.6percent of GDP (less than 55 percent of GDP, as regulated), added thePM.
In order to cut public debt to 60.2 percent of the grossdomestic product (GDP) and spend approximately 20 percent of the totalState budget on debt repayments by 2020, the Government vowed torestructure and closely monitor its debt portfolio and new loans,including Government- and localities-backed loans.
Debt owedto foreign lenders is expected to account for 39.9 percent and 46percent of GDP in 2014 and 2020, respectively, which is still lower thanthe limit of 50 percent of GDP limit. The amount of foreign debtpayments due in 2014 accounts for 25.9 percent of exports of goods andservices.
The Government will ask the State Bank to closely monitorall short-term loans taken out by credit institutions so that from 2015onwards the rate of foreign debt payment will be brought under theregulated limit of 25 percent of annual exports of goods and services,the PM said.
The expenditure and collection of state budgetshould be revised towards increased domestic revenue collection. TheGovernment aims to increase the contribution of domestic revenue to 80percent of the total budget by 2020.
In the meantime,necessary changes to the Laws on State budget and public debtmanagement, as well as other relevant strategies will be made, making iteasier to meet debt repayment deadlines.
Regarding thesettlement of bad debts, the Government leader said nearly 250 trillionVND worth of non-performing loans (NPLs) had been settled by lateOctober, compared to 465 trillion VND of NPLs in September. This wasachieved by collecting, restructuring or selling NPLs to Vietnam AssetManagement Company (VAMC).
According to the State Bank, therate of NPLs stood at 5.4 percent in late September and is forecast todrop to 3.7-4.2 percent this year, compared to 17 percent in September2012. The total is expected to be within the allowable limits by late2015.
To speed up the process, the Government is set tocontinue fine-tuning legal regulations, including those on the functionand financial capacity of VAMC, while developing a debt market andenhancing inspections in a joint effort between the State Bank,ministries and localities.
Credit institutions will stillundergo restructuring processes, thereby improving their performance andgovernance, Nguyen Tan Dung said.
The government is alsodetermined to improve the standards of its business climate, which areexpected to surpass the ASEAN-6 average in 2015.
To enhancelabour productivity, the government will accelerate agriculturalrestructuring together with building new-style rural areas, introducingnew technologies and equipment, upgrading socio-economic infrastructure,improving the quality of the workforce, fine-tuning policies andexpanding markets.
Ethnic minorities will also benefit from aprogramme on rapid and sustainable poverty reduction, the governmentleader promised.
Reporting on socio-economic performance inOctober and November, as well as socio-economic development plans fornext year, the leader pointed out a 0.2 percent decrease in inflationand a 1.5-2 percent drop in interest rates. During the first 11 monthsof this year, the country earned approximately 137 billion USD fromexports, up by 13.7 percent, while spending 135 billion USD on imports, arise of 12.6 percent.
During the same period, the industrialproduction index surged by 7 percent, higher than the 5.6 percentrecorded last year. More than 67,200 businesses were registered as newoperations, while 23,700 continued their operations, an increase of 7.8percent.
Over 1.46 million jobs were generated, 91.2 percentof the annual target, which marks an increase of 3.87 percentyear-on-year.
Next year, the government will stick to itspackage of goals, including stabilising the macro-economy, improving theinvestment climate, and restructuring and strengthening the economy byshifting to new growth models.
Simultaneously, it will alsoenhance environmental protection and natural resource management whileaccelerating administrative reforms and ensuring political security andsocial order.
Later, Nguyen Tan Dung responded to lawmakers’questions on the Mekong Delta’s economic development, how the nationaleconomy capitalises on maritime resources, and policies benefitingethnic minorities who lack production land.
The Party issued aresolution on maritime strategy and devised an action plan thatensures profitability and national sovereignty over sea and islands,with many promising results recorded so far, he noted.
Inresponse to questions on the Party and State’s policies since Chinaremoved its Haiyan Shiyou – 981 rig from Vietnamese waters, the PM saidVietnam wanted to settle differing views on maritime sovereignty inaccordance with the 1982 United Nations Convention on the Law of the Seaand other agreements reached in the past.
Vietnam’s positionis to firmly protest all acts that run counter to the Declaration on theConduct of Parties in the East Sea, of which China is a signatory, heaffirmed.-VNA
