Vietnam - Vietnam foreign debts stand at $32.5 billion at end-2010

Vietnam’s foreign debt stood at $32.5 billion at the end of 2010, up $4.6 billion from $27.9 billion in 2009, the Ministry of Finance said Monday.

The figure included $27.86 billion worth of loans taken by the government and $ 4.6 billion worth of government-guaranteed loans taken by local companies, the ministry said in a statement.

Most of the loans bear fixed annual interest rates of between 1% and 2.99%, it said. However, $1.89 billion loans in 2010 born high interest rates from 6-10% p.a. , doubling that in 2009 and $2.15 billion loans bearing 3-6% annual interest rates, up 43% on year.

Vietnam’s largest creditors in 2010 included the governments of France and Japan, the Asian Development Bank and the World Bank. Of note, Vietnam owned bond holders $2 billion in 2010 from over $1 billion in a year earlier.

Vietnam repaid $1.67 billion of principal and interest to its creditors in 2010 compared with $1.29 billion in 2009.

It is estimated that the country has to pay approximately $1.5 billion of principal and interest to creditors each year, from now to 2015 and in 2020, Vietnam will have to pay $2.4 billion, including 10 year bond issued by the Government bearing interest rate of 7% p.a.

The country’s foreign debt in 2010 accounted for 42.2% of its gross domestic product, up from 39% in 2009, and highest level since 2006.

Of note, Vietnam’s total forex reserve shrank to 187% of total outstanding short-term loans from 290% in 2009, 2,808% in 2008 and 10,177% in 2007. 

Stoxplus.com

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