Orientation of Public Debt Management in Vietnam with International Approaches

1. Reasons for Choosing the Topic

In recent years, public debt and the safety level of public debt have been among the extensively discussed and researched topics worldwide, encompassing both developed and developing nations. In Vietnam, public debt management has achieved significant outcomes in the recent period, mobilizing substantial capital to contribute to the fulfillment of economic and social development tasks. The legal framework for public debt management has been gradually improved; the allocation and utilization of borrowed funds for their intended purposes and effectiveness have been ensured. The Government has maintained control over public debt within permissible limits, and up to now, full and timely debt repayment has been arranged, ensuring national financial security and debt safety. Emphasis has been placed on supervising, managing risks, inspecting, auditing, and assessing public debt, with strengthened efforts at all levels. The processes of borrowing foreign loans, granting and managing government guarantees have been executed more rigorously and cautiously.

However, the practical management of public debt in Vietnam still reveals several limitations that need to be addressed promptly. These can be highlighted as follows: provisions regarding public debt management are mentioned in various legal documents with inconsistencies and overlaps; the scope of public debt does not accurately reflect the essence of each debt item and differs from international norms; clear objectives and tools for proactive debt management have not been well-defined, and scientific classifications of public debt types are lacking; regulations on authority and responsibility for public debt management are decentralized and have low effectiveness; the rapid increase in public debt adversely affects debt safety and the efficient utilization of public resources, particularly in a context of low and slow improvement in public sector efficiency; risk management still faces numerous constraints, and latent risks persist within the public debt structure; the activities of inspection, monitoring, auditing, settlement, and reporting on public debt have not received adequate attention; the information system and data on public debt are not regularly updated; reporting mechanisms are not fully compliant and are slower than required, with suboptimal quality.

Based on the aforementioned reasons, we have chosen the topic “Orientation of Public Debt Management in Vietnam with International Approaches” as the subject of our participation in this competition.

2. Research Objectives

The overarching goal of this study is to establish a system of public debt management solutions that align with international norms, considering Vietnam’s deepening integration into the global economy. Based on the general objective, specific objectives include:

• Firstly, systematizing, selectively inheriting, supplementing, and developing to further clarify fundamental theoretical issues related to public debt management, understanding international norms, and the models of public debt management in various countries around the world.
• Secondly, analyzing the current status of public debt management in Vietnam, highlighting achieved results, identifying limitations, and explaining the causes of these limitations.
• Thirdly, constructing and proposing feasible solutions, rooted in the country’s realities, to enhance public debt management in Vietnam in the near future.

3. Research Subject and Scope

• The research subject of this topic is the task of public debt management (government management of public debt) in Vietnam, incorporating international norms, as the country continues to integrate into the global economy.
• The research scope of this topic is defined as the task of debt management by the central government authorities, including the National Assembly, the Government, and relevant Ministries and Departments. The primary research period covers 2006 to 2017, with some data extending to 2019 and 2022 due to the objective existence of significant time delays in debt management data.

4. Research Methodology

• Analytical, synthesis, comparative, qualitative and quantitative analysis methods.
• Historical and logical methods.
• Systems method.

5. Structure of the Research

In addition to the Introduction, Conclusion, and Reference sections, the main content of the study is divided into three chapters:

Chapter 1: Overview of Public Debt and Public Debt Management.

Chapter 2: The Current Status of Public Debt Management in Vietnam.

Chapter 3: Developing Solutions to Enhance Public Debt Management in Vietnam in Alignment with International Norms.