UN Weighs in on Vietnam’s Debt Crisis

A United Nations analyst contends Vietnam’s budget and trade deficits require urgent attention or else the country’s education, social security and health care will suffer.  Vietnam’s  budget  and  trade deficits are forcing the government to choose between servicing  its  debt and investing in social needs.

Vietnam’s budget deficit soared to 9% in 209 and eased somewhat last year before the government aimed to get the deficit below 5% this year.  The trade deficit nearly tripled to $14.1 billion in 2007, then took another leap to $18 billion in 2008 before dropping to $13 billion in the past two years.  That’s still high enough to worry foreign investors because the foreign debt load is estimated to be as high as 50% percent of GDP.

That’s why all three major ratings agencies downgraded Vietnam last year — and the reason authorities are struggling to stabilize the economy.

More on Vietnam’s deficit crisis

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s