The workshop held in Hanoi on August 23 (Photo: VNA) Modelsfor a public debt management agency are diverse, and there are also manydifferent debt management approaches and methods around the world, experts toldthe workshop held by the Ministry of Finance, the International Monetary Fund (IMF),the World Bank (WB), and the Swiss State Secretariat for Economic Affairs.
Manycountries have set up debt management offices (DMOs) where debt managementfunctions are concentrated to highly professionalise the work, they said,noting that the formation of DMOs is meant to ensure consistent, concerted, andall-round control of risks of borrowing, along with the implementation of the Government’sdebt management policies and repayment plans.
DeputyMinister of Finance Nguyen Duc Chi said in Vietnam, the public debt management policyis connected with the fiscal and monetary ones. However, it has justfocused on the mobilisation of concessional loans and those made according tointernational practices, but yet to fully monitor and assess all borrowings anddebt transactions.
Asthe country’s economic stature has improved much and the accessibility to concessionalloans will decline, more debt-related risks will occur, which requires uniform,consistent, and professionalised management to promote policymaking efficiencyand achieve an appropriate structure of public debt expenses and risks, he said.
The official recognised the necessity to develop a DMO that matches international practicesand Vietnam’s development level and management demand.
Francois Painchaud, IMF Resident Representative in Vietnam, addresses the event. (Photo: VNA) But there remain many challenges since public debt management is stillconducted by different agencies such as the Debt Management and ExternalFinance Department and the State Budget Department of the Finance Ministry, andthe State Treasury.
This will lead to inconsistency in policy making and implementation, he pointedout, recommending relevant agencies re-organise regulations and mechanisms toguarantee consistent debt management.
Data from the Finance Ministry showed that the public debt-to-GDP ratio has fallenover the last six years, to 43.1% (157 billion USD) in 2021 from 62.2% in 2016.Domestic debt increased considerably to account for 67.2% (2.2 quadrillion VND)of the Government debt at the end of 2021 while foreign debt has tended todecrease./.
VNA
