PM Dung calls for sound public debt management

Prime Minister Nguyen Tan Dung

PM Dung answered inquiries by NA deputies on issues related to socio-economic development, such as export-import, disbursement of official development assistance (ODA), State budget collection, and budget spending.

e reported that due to the global economic difficulties, Vietnam’s economic growth has been slowing down in recent years, from an annual rate of 7% in the 2006 - 2010 period to around 5.8% from 2011 to 2015.

He raised concern over an increase in budget spending to ensure social welfare and national security and defence, as well as helping businesses pay due debts.

The Government leader suggested intensifying strict management of public debt, particularly new loans. It is essential to reduce public debt to 60.2% of GDP, and Government debt to 46.6% of GDP by 2020, while strictly controlling capital construction debts, loans borrowed from social insurance fund, and debts owed by State-owned enterprises (SOEs), Dung stated.

With the recent decision to increase wages, he said spending on development projects will decline sharply from 25% of total State spending in the 2006 - 2010 period to around 18% in the 2011 – 2015 period.

The PM attached importance to attraction of domestic investment by government bond issued in the 2011 – 2015 period (about VND335,000 billion, or 2.5 times higher than in the 2006 - 2010 period).

He also stressed the need to speed up ODA disbursement and infrastructure development, and expressed his worry about rising public debt, which may go up to 60.3% of GDP by the end of this year from 51.7% of GDP in 2010. The rate is likely to hit 64% of GDP by the end of 2015. However, this level is still within the limit permitted in the NA Resolution, he noted.

Next year, the government will stick to its package of goals, including stabilising the macro-economy, improving the investment climate, and restructuring and strengthening the economy by shifting to new growth models. Simultaneously, it will also enhance environmental protection and natural resource management while accelerating administrative reforms and ensuring political security and social order, he said.

The PM also called for closer cooperation among localities to ensure national security and defence.

In response to questions on the Party and State’s policies since China removed its Haiyan Shiyou – 981 rig from Vietnamese waters, Dung said Vietnam wanted to settle differing views on maritime sovereignty in accordance with the 1982 United Nations Convention on the Law of the Sea and other agreements reached in the past.

Vietnam’s position is to firmly protest all acts that run counter to the Declaration on the Conduct of Parties in the East Sea, of which China is a signatory, he affirmed.

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