At 52 percent of GDP, the government debt is now largely in line with the median of about 50% for Ba-rated sovereigns. The rapid pace of nominal economic growth will stabilize debt at this level.
These improvements, together with a mix of healthy trade flows and robust consumption, will support an average GDP growth of 6.4% between 2018-2022. Moreover, the structure of debt has improved, with lengthening maturities and a declining share of foreign-currency debt limiting Vietnam's vulnerability to financial shocks.
