What are the bases for preparing 5-year public debt borrowing and repayment plans in Vietnam?

What are the bases for preparing 5-year public debt borrowing and repayment plans in Vietnam?

Pursuant to Article 8 of the Decree 94/2018/NĐ-CP stipulating bases for preparing 5-year public debt borrowing and repayment plans in Vietnam as follows:

1. Implementation of socio-economic development plans, 5-year national financial plans, midterm public investment plans and previous 5-year public borrowing and repayment plans

2. Objectives and orientation for socio-economic development, finance and state budget, public investment and macroeconomic balances according to Resolutions of the National Assembly

3. Law regulations on finance - state budget, public debts, public investment, currency and credit

4. Guidelines provided by the Government for preparing socio-economic development plans, 5-year financial plans and midterm public investment plans

5. Execution of loan contracts and use of current debt instruments; demand for use of loans and forecasts about domestic and external loans that create negative impact on the capacity for raising loans under loan contracts and issuance of debt instruments in 5 planning years.

What are procedures for preparing 5-year public debt borrowing and repayment plans in Vietnam?

Pursuant to Article 9 of the Decree 94/2018/NĐ-CP stipulating procedures for preparing 5-year public debt borrowing and repayment plans in Vietnam as follows:

1. People’s Committees of provinces shall prepare 5-year borrowing and repayment plans of provinces and send them to the Ministry of Finance in accordance with the Government regulations on management of provincial debts to be included in the 5-year public borrowing and repayment plan.

2. Ministries and ministerial agencies that are in charge of public debt using programs or projects shall evaluate the management of public debt use by ministries and ministerial agencies in the previous 5 years and anticipate the need for public debt use in the next 5 years then submit a report on the above-mentioned issues to the Ministry of Finance which is then included in the 5-year public borrowing and repayment plan.

3. The Ministry of Finance shall preside over and cooperate with relevant ministries and provinces in preparing and submitting the next 5-year public borrowing and repayment plan associated with the 5-year national financial plan to the Prime Minister.

4. Based upon opinions of the Prime Minister, the Ministry of Finance shall preside over and cooperate with ministries and provinces in completing the preparation of the next 5-year public borrowing and repayment plan and sending such plan with the 5-year national financial plan to the Standing Committee of National Assembly and agencies of National Assembly.

5. Based upon opinions of the Standing Committee of National Assembly and National Assembly Committees, the Ministry of Finance shall complete the preparation of the next 5-year public borrowing and repayment plan then send it to the Prime Minister which is later submitted to the National Assembly together with the 5-year national financial plan.

How shall 5-year public debt borrowing and repayment plans in Vietnam be implemented?

Pursuant to Article 10 of the Decree 94/2018/NĐ-CP stipulating implementation of 5-year public borrowing and repayment plans in Vietnam as follows:

1. People’s Committees of provinces shall instruct provincial specialized agencies to implement 5-year borrowing and repayment plans of provinces to ensure:

a) total 5-year loan and repayment amount of provinces do not exceed the limit specified in the plan ratified by the People's Council of provinces;

b) money amounts to repay debts is set aside on schedule

2. The Ministry of Finance shall preside over the supervision and evaluation of implementation of 5-year public borrowing and repayment plan, specifically as follows:

a) Ensure that total 5-year loan and repayment amount do not exceed the limit specified in the plan ratified by the National Assembly;

b) Send a report on solutions prescribed in clause 2 in Article 7 herein to the Government which is then submitted to the National Assembly and Standing Committee of National Assembly;

c) Send a report on such implementation to the Government which is then submitted to the National Assembly and Standing Committee of National Assembly for adjusting the 5-year public borrowing and repayment plan (where necessary).

3. Ministries, People's Committees of provinces and relevant agencies shall be responsible for cooperating with the Ministry of Finance in preparing and implementing 5-year public borrowing and repayment plan.

Best regards!