Issuing government bonds has met the budget capital at reasonable costs

Additional assignment and adjustment of the medium-term public investment plan for the period of 2021-2025

Source: State Treasury

In summary of 2024, the State Treasury report said that in the context of many fluctuations in the global economic situation, the disbursement rate of domestic public investment capital is still slow, and the state budget balance is high, the State Treasury has proactively consulted with the Ministry of Finance on solutions to deploy capital mobilization.

Specifically, it has proactively coordinated with the State Budget Department and related units to regularly review and evaluate the state budget revenue and expenditure situation, and the ability to mobilize capital from government bonds.

Through the synchronous implementation of solutions, the State Treasury affirmed that capital mobilization through the issuance of Government bonds has ensured the mobilization to meet the capital needs of the State budget at reasonable costs.

At the same time, it contributes to safe and sustainable public debt management and supports the State Bank in operating monetary policy, controlling inflation, and stabilizing the macro-economy.

At the same time, use temporarily idle State Treasury resources to determine the State budget's borrowing needs, and submit to the Ministry a suitable plan for issuing Government bonds.

Simultaneously, focus on issuing Government bonds by bidding through Hanoi Stock Exchange, ensuring publicity and transparency.

The State Treasury has also flexibly issued various types of Government bond maturities, focusing on long maturities of 5 years or more.

The State Treasury continues to restructure the Government bond debt portfolio in the direction of extending the issuance term, ensuring that the average issuance term of Government bonds is consistent with the target (9-11 years) in Resolution No. 23/2021/QH15 of the National Assembly.

The unit also operates the interest rate of issuing Government bonds within the interest rate framework decided by the Ministry of Finance, in accordance with the market situation and the monetary policy of the State Bank, etc.

The State Treasury advises leaders at all levels to use temporarily idle State treasury funds for lending to the central budget, meeting capital needs, reducing borrowing costs, and improving the efficiency of using State financial resources, etc.

As a result, according to the report, by the end of December 18, 2024, the State Treasury had mobilized VND 328,375.5 billion, reaching more than 82% of the 2024 plan assigned by the Ministry of Finance (VND 400,000 billion).

The average issuance term of Government bonds is 11.08 years; the average issuance interest rate of Government bonds is 2.52%/year.

The total payment volume of principal and interest of Government bonds by the end of December 15, 2024 is VND 246,277.8 billion, of which: principal is VND 161,470 billion; interest is VND 84,807.8 billion.

Entering 2025, the State Treasury said it will closely follow the assigned capital mobilization plan for 2025, proactively develop an issuance schedule, grasp the revenue and expenditure situation, the principal repayment plan of the central budget and market developments.

Thereby promptly advising the leaders of the Ministry of Finance on solutions to mobilize capital for Government bonds with appropriate volume, term and issuance interest rates.

This helps ensure sufficient mobilization of volume according to the needs of the central budget and maintain stable operations of the Government bond market.

At the same time, closely linking the primary market and the secondary market, debt management, treasury management, and budget management, contributing to enhancing the effectiveness of public debt management.

The State Treasury will strive to complete the task of mobilizing capital for Government bonds in 2025 according to the plan assigned by the Ministry of Finance.