In mid-August, MOF warned about the failure in the 2015 government bond issuance plan. It planned to mobilize VND250 trillion worth of capital through bond issuance, but only VND141 trillion had been found at that time.

At that time, no one mentioned the possibility of issuing government bonds in the international market. 

Just two months later, MOF announced the plan to issue $3 billion worth of international bonds, the largest-ever bond campaign designed.

MOF’s Deputy Minister Do Hoang Anh Tuan tried to reassure the public at a press conference on October 26 that the state budget balancing was still within reach, and that $3 billion is the ceiling level for the bond issuance in 2015-2016 to restructure short-term debts.

Meanwhile, Bui Duc Thu from the National Assembly’s Finance & Budget Committee said to the local press that it was urgent to raise funds to pay debts and spend on investment & development, i.e., that the bond issuance plan may be implemented immediately, not in 2017 as initially planned.

Prior to that, MOF admitted the plan to borrow VND30 trillion, or $1.3 billion from the State Bank. 

MOF denied that it had to borrow money because of the scanty budget, saying that this was just ‘technical skill’ and commitment to pay the debt back by the end of the year.

The ministry also announced the issuance of $1 billion worth of bonds to Vietcombank.

With these three items, the government will borrow $5.3 billion through bond issuance.

MOF also plans to borrow VND95 trillion from the Social Insurance Fund and issue VND20 trillion worth of State Treasury bills.

Minister of Planning and Investment Bui Quang Vinh caused a shock to people when saying before the National Assembly: “There is only VND45 trillion left in the state budget. What can we do with this amount of money?”

MOF then explained that VND45 trillion is the amount of money left to be reserved for spending on investment and development, and this is not the total national budget.

MOF’s Tuan said Vinh provided true information, but the VND50 trillion worth of ODA capital also needs to be counted on, emphasizing that ODA is also reserved for investment and development.

Tuan had the documents about the 2015-2016 balanced budget at the meeting, but he could not give more details as the ‘document is confidential’. 

When the amended Budget Law takes effect, slated for 2017, such documents will no longer be ‘confidential’. Only by that time, the local press will be able to approach the documents.

US$1 =  VND22, 500

Pham Huyen