According to a report the government has submitted to the National Assembly’s Standing Committee, debt from domestic resources and ODA loans and other preferential loans from foreign resources is estimated at nearly VND604.4 trillion (over $24.8 billion), accounting for 93.8 per cent of the plan, with rates on government bonds and ODA loans higher than last year.

The fact that ODA loans to be provided under new agreements signed in 2022 have higher rates reflects a policy change from donors as Vietnam has become a low to middle-income country.

Debt to be mobilized from domestic resources this year, by issuing government bonds, is estimated at over VND547 trillion (more than $22.4 billion), with an average term of 12.6 years, longer than the nine to eleven-year terms passed by the National Assembly, and with an annual rate of 3.7-4 per cent, an increase of 0.22-0.52 per cent compared to 2022.

Meanwhile, ODA loans and preferential loans from international donors are estimated at nearly VND57.3 trillion ($2.34 billion), accounting for less than 10 per cent of total debt.

The government’s total debt payments are estimated at over VND311.5 trillion (more than $12.75 billion) this year.