Vietnam Gov’t Signs 6 Credit Packs Worth $531.79M in Jan-Jul

The Vietnamese government signed six credit packs with the International Fund for Agricultural Development (IFAD) and the Japanese and South Korean governments in the first seven months of this year with a total value of $531.79 million, according to the Department of Debt Management and External Finance, under the Ministry of Finance.

Last month, the government inked three loan agreements with the Japanese government totaling $434.45 million. They include $356.2 million to supplement the state budget for socio-economic recovery and development in the post-COVID-19 period, $44.48 million for public infrastructure improvement in Binh Duong province, and $33.76 million for agricultural infrastructure development in Lam Dong province.

Also, in July, the department distributed about VND898 billion ($37.4 million) of Vietnam’s foreign loans, with VND790 billion for allocation to agencies and VND108 billion for re-lending.

In the seven-month period, the disbursed foreign loans amounted to VND16.76 trillion, meeting only 18.4% of the target. The allocation amount was VND12.22 trillion, while the figure for re-lending purposes was VND4.55 trillion.

Under the prime minister’s decision 458/QD-TTg dated April 28, 2023, the Vietnamese government is expected to mobilize VND644.41 trillion in 2023-2025. Of the amount, VND430.5 trillion will be used to cover budget spending, VND190.52 trillion for debt repayments, and VND23.39 trillion for re-lending.

In the first seven months of this year, Vietnam borrowed VND235.48 trillion from domestic and foreign sources, or 36.5% of the plan. (TBTCVN)