The report said that even though Vietnam is on recovery, the state budget deficit has risen since 2013 to be equivalent to 6.6% of the country’s GDP. Inefficient state investment in public projects and a lack of oversight has been blamed for the problem.
Experts have also shared concerns on the fact that the number of businesses that have halted operations has remained high. In recent years, the government has made a lot of efforts to improve the country’s business environment and competitive capacity. However, more measures are still needed to build a plan to rebalance public debts, in both the long and short term. The state budget is set to keep spending surplus at 4% of the country’s GDP in 2016-2020.
