Vietnam Govt Debt to Rise by 4% in 2010: Economist
Higher state budget deficit is likely to push Vietnam’s government debt to rise by 4% next year, said Vice Chairman of the Vietnamese National Assembly’s Economic Committee Vu Viet Ngoan.
Ngoan also warned that the government debt will reach an unsafe level if the Government failed to take necessary measures to tackle the growing budget deficit, which is expected to stand at 6.9% of GDP this year.
State budget deficit has been the main cause for the huge national debt over the past years.
Other reasons for the soaring debt are spending from government bonds and foreign loans made to local enterprises while the payment balance deficit and the decrease of foreign reserves will also add to the debt.
The government debt will expand to 40% of GDP by the year-end, up from 36.5% in 2008, data from the Ministry of Finance showed. (Vietnam Economic Times)
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