More long-term Government bonds to be issued in 2017

Of that targeted sum, VND184 trillion (US$8.15 billion) will be used to offset budget overspending and the remaining VND156 trillion (US$6.91 billion) will be spent on paying off original loans.

The Vietnam State Treasury said it has issued a variety of Government bonds, with terms ranging from 3-30 years, mostly from 5 years upwards to ease the debt payment pressure on the State budget in the near future.

According to the Ministry of Finance, up to 91.1% of Government bonds issued in 2016 has terms of at least five years, surpassing the target of 70% set by the National Assembly.

The average interest rate for Government bonds last year was 6.49% per annum, down 54.5 percentage points from 2011.

In 2016, the State Treasury raised VND281.75 trillion (US$12.48 billion) from Government bonds, VND55 trillion (US$2.43 billion) from social insurance. 

It disbursed US$1.9 billion from official development assistance (ODA) capital and preferential loans, meeting the estimated budget spending.