Vietnam is mulling issuing around US$1 billion worth of Government bonds on international capital markets for debt rescheduling, Minister and Chairman of the Government Office Nguyen Van Nen said at a news briefing in Hanoi on August 28.
The international G-bond sale is one of the topics which cabinet members discussed at a two-day regular meeting of the Government that ended on August 28, according to a statement released by the Government Office.
If implemented, this would become the third international G-bond issue after the US$750 million 10-year bond sale with an annual coupon of 7.125% in 2005 and the US$1 billion 10-year bond issue in 2010.
Vietnam Shipbuilding Industry Group (Vinashin) re-borrowed US$750 million but failed to repay the loan to the Government due to its inefficient use of this capital source.
The US$1 billion raised from the 2010 debt paper sale was lent to several State-owned groups.
According to a debt management scheme already approved by the Government for 2013-2015, Vietnam plans to borrow VND33 trillion in 2014 and VND40 trillion in 2015 from overseas markets to finance its budget deficit.
Speaking at the regular meeting, Prime Minister Nguyen Tan Dung said this year’s gross domestic product (GDP) growth target of 5.8% is obtainable if ministries work hard to realize solutions to support enterprises, expand consumption markets at home and abroad, and improve the competitiveness of the country.
Ministries should seek ways to make access to bank loans easier, settle bad debt and accelerate investment capital disbursements, Dung was quoted by Vietnam News Agency as saying.
Regarding economic restructuring, he emphasized priority for the restructuring of public investments, state-owned enterprises (SOEs), commercial banks and agriculture. Economic sectors will benefit from a package of incentives, including administrative reforms expected to create a better business environment.
For social issues, the Government leader urged the extension of social welfare services to people, a relief in hospital overload and sustainable poverty reduction in ethnic minority regions.
Ministries and agencies were also told to maintain political stability and social order while stepping up external activities and safeguarding national sovereignty.
Regarding 2015’s socio-economic performance, the Government aims for 6.2% GDP growth, 5% inflation and 5% State budget deficit and 1.7-2% household poverty reduction.
To realize these objectives, cabinet members proposed developing the processing, supporting and mechanical industries and boosting high-tech farming, as well as attracting more investments.
Deputy Prime Minister Nguyen Xuan Phuc pointed out shortcomings of the economy such as enterprises’ difficult access to bank loans, smuggling and counterfeits. Some policies and principles remain out-of-touch.
SGT/VNN