Viet Nam public debt
Imagine. That you have a party, if, it just need to cook for yourself it's gonna piece of cake just make something new you like but. If you got yes things, get harder, supposing. That some of your guests are vegetarian, gluten-free. Also, your. Option will be limited and that's. The problem of the European Union with a lot of countries is in the same currency. So. Greece, is a disaster, with a very high debt burden, and. Now let's consider this timeline. Please. Join the euro currency in, 2001. Then. In 2004. We, spent 9 billion, IRA's to host the artists making, the 2004. Summer Olympics the most expensive, Olympics, at the time however. The. Buildings that were built for, a bliss France, and the media were barely used and degraded, leaving, the country immersed, in huge debts. Athens. Olympics, is the seeder of direct cost of Greece debt crisis, which, continues, to this day, already. Spending has increased public. Debt and budget deficits at. The, end of 2004. The Greek government, admitted exaggerating. Condition, for joining the eurozone, particularly. The budget deficit, of 2000, to 2003. The. Condition, of the eurozone is the deficits of less than 3 percent of GDP. However. After, a survey, by the European. Union statistical. Agency. Eurostat. The. Greek finance minister, and a wish that the figure were less than 3 percent since, 1999. In. March 2010. The Greek, government, approved austerity, package including. Trust in data Missouri's, retirement. Pensions, tax, increases, on cigarette, angle, and gasoline. Trade. Earrings reacted, very strongly, to this news and held, purpose. European. Commission provided. The first base package, for Greece which. Worth, 110. Million euros. Perhaps. The flat tire economy, of the country, who pushed the region as a Benjamin. Greece. Had to set more tightening, in exchange, for of their lives sparking. Purchase so. Far the country has received, two Balazs totaling. More than. 240. Billion euros. In. 2015. Syriza. Party led, by Alex the Super's when the Greek election, in January this year then. Arrived with a right-wing, Rico Roman party, the. New government, is committed to removing the austerity, measures that are weighing heavily on race but, this has left investor, worried about the possibility, of frits leaving, the eurozone. So. In 2015. The. Euro group has approved, a forum of great devastation in, February, after, the new government of the country submitted. A reform, proposal, shortly, before the deadline, these. Measures, include controlling, public, expenditure, reducing. Corruptions, and tax evasion. Greece. Is still required, to pay for different cultures, during. The period from April to, June 2015. However. No. Deadline is meant. To. Say that the banking system. People, in this country, must to withdraw money, earlier. This week the great bellman had to take measures, to control cabbage, we closed the bank stock, market, restrict. Cash withdrawal, from ATMs. And foreign transactions. Soon, after in July the 20th, of 2015. International. Monetary, Fund is, from no slack Grace has escaped, the risk of isola see after, paying the death of a few billion euros that Allen had missed Reagan iron. Great, step crisis is for sure due to the poor financial management, of, the public finances, coupled, with excessive. Government spending which. Is beyond control but. Let's, consider these four following major causes as well. First. Law domestic savings lead to the external borrowing, from public spending in. The 1990s. The average bridge savings, rate was only 11%, much. Lower than the 20% of, countries, like Portugal, Italy.
And Spain intended. To follow shortly, first. Domestic. Investment, is heavily, dependent on a standard paper though in flows. Second. High, public expenditure, leads to the budget deficit, Chris. GDP, per has been priced with an average annual growth rate, of 4.3%. From. The 2001. To 2007. Compared. To the euro area average, of 3.1. Percent, however. At, this stage government. Spending increased by 87. Percent or the government, revenue increased, by only 31. Percent resulting. In the budget deficit that is seeded in the year use 3. Percent GDP. Third. Lack, of transparency and Trust of investors, the, public debt crisis, of Bruges is due to the government's, lack of transparency of data trying. To draw a rosy, picture of the budget status, of forthcoming, policies. To overcome, the budget histories, or problems. Finally. Declining, revenues, are also effective, living, - budget deficits, and increase public debt fast. Evasions, and under the economic activities, increased, are factors, that reduce budget revenues. According. To the World Bank the informal, economy increased accounts, for 25, to 30 percent of GDP, compared. To. 15.6. Percent of Viet Nam's GDP, and 13.1. Percent of, China's and Singapore's, GDP. The. High tax rate and the complexity, of tax system, together, with faces, and in effective, regulations. Of regulator, and, flight to the tax evasions and the development. Of the underground economy in Greece, smaller. According. To Transparency International. Chris, has one of the highest levels, of corruption, in the EU in. 2008. More, than 13%, of grace spent up to, 750. Million euros, in the envelope, for public and private sectors leaders. In. Cyprus there is another country that has a very high debt but, the situation is completely different. Although. Japan is the third largest economy, in the world is debt, to GDP ratio is at the top of the world, similarity. To almost all countries Japanese. Public debt consists, of government, issued bonds short-term. Loans and securities to, finance budget deficits, GDP. Growth in Japan in recent years, no about, one point 37 percent, in 2015. 0.94. Percent in 2016. And. 1.71, percent in, 2017. Indonesia. Japan, sovereign, debt per GDP ratio, was also at high rate according. To the Ministry, of Finance Japan's, public adverse, from two hundred and eighteen, point eight percent in, 2013. To, two hundred and thirty three percent in, 2017. Japanese. Economy is facing, to a variety of issues like economic, growth, is low public, debt is rising the, yen continued to depreciate, and the trade deficit pleasure. The. Ministry, of Japan, s women's reported, that Japan's, public death has present, to a record high of more than 1 trillion yen. 1071. 46. To. Be precise or nine. Point four, trillion u.s. dollars in. Fiscal year. 2016. And then in the last March the. Total. Outstanding debt government. Debt stood at nine hundred and thirty four point ninety trillion, yen, financial. Institutions lowens, total, fifty. Four point forty two trillion in, and short-term. Loans total, eighty-two. Point training, for trillion, yen at, this, level, it is estimated that every Japanese. Citizen, will have to pay approximately eight. Point forty five million yen it follows, the latest statistic. Released on the April the first Japan's. Population is. Around, four, hundred and twenty six point, seventy, nine million. This. Might be related as the that, in the number of people lots of countries different. National, debt is still at the safe level because, of the following factors. First. Of all government. Loans are stable and less dependent on international investors. Since. The early, 1990s. When, the Japanese government, budget began to devastate German. Radar for it is deficit, by issuing bonds for death mainly, from domestic savings of up to, 17. Trillion USD. The. Vast majority of the government, bonds are directed, towards Japanese, buyers which, accounts, for 95%, of, government, bonds. Approximately. 50 percent of political, assess about, 1.4, trillion yen are deposited. In cash and deposited, in Bank who, has u.s. accounts, for only 14%, of, which, most are invested, in the government, bonds through, the banking system, moreover. The, entire Japanese government. Bond is denominated, Indian, not, in foreign currency, first. The, Bank of Japan became the effective, parent er of all Japanese government, debt in. The case of a sell-off on the Japanese government bond market, Bank, of Japan may intervene and buy our bonds by printing more money the. Ability to monitors, mine, of Japan death is unlimited. Because, interest, rate alone the, cost of death is much lower than our country, this. Is part leading to Japan's monetary, policy, the, Bank of Japan reduced the official, cash rate to. 0.1. Percent from the end of 2008. To cope with the crisis, even. Before the global financial economic, crisis. In order to stimulate him in the, Bank of Japan has kept the official, cash rate a, zero, or nearly zero percent for many years over.
The Past ten years Japan. Official, cash, rate has never exceed, 0.5. Percent a very low level of compared to most countries. Lastly. The, incremental, capital output ratio in. Japan, is effective, and the foreign currency reserves are great, although. Japan public, debt ratio is more than 200%. Of GDP, the. Incremental, capital output ratio is. Only 3.0. So. The ability to return. Their fees. In. Addition, Japan's. Foreign reserves, are also very, high according. To the Ministry, of Finance of Japan Japan's. National Reserve is one. Thousand, and forty six point, eight hundred, and seventy, three billion dollars, in May, 2011. So. How about our country, Vietnam in. The current context, of the economy, Vietnam, public, debt is at an alarming, rate and has a tendency, of increasing, in. 2018. Because, disarray, that that issue anonymous, citizen must share with the public debt of an amount of approximately more. Than 22, million with a number, over. The past five years the noun is in top countries, has the fastest, increasingly, ratio, of public debt to GDP, by, 10 percent from, CC 1.7. Percent in 2010. To. 61. Percent in 2015. This, slide automatically. Rise in economic, growth. The. Growth rate of Vietnam is a three time as the growth rate of GDP as. Reported, in, 2017. Reimbursement. Alone is up to 95, thousand, billion and public. Debt burden is rising, every. Three months, venom price public, debt including, a principal and interest of, approximately. 25 trillion, in our own approximately. 1 billion dollar. The. Public debt of Vietnam is about. 280,000. Million that, we only paid. 150. Thousand, billion. Then had, to follow. 130,000. Million more, approximately. Six million dollars, dreamer, slowly. According. To an International, Monetary Fund forecast, it, will be about sixty, three point three percent and simply four point three percent in. 2017. And, 2015. Respectively. Why, the public debt ceiling, is set by the government at sixty-five percent of GDP, for, 2020. If. It really happens, when, our fiscal stability could, be put under threat in order, to do with increasing continuously, debt. Vietnamese, government unfortunately, have. To raise various, of Tessa's as the, space income, depends for Chile on test revenues, print, more money to, stabilize, the market. Therefore. Is, outcome, would lead to an increase in inflation rates, the, devaluation of, the currency and, the rise of unemployment, which. Hurt on the economy, development. In. Fact public, debt has directly, effect, on all aspects, of human life such, as economy, health, systems, education. Social, welfare and so on the.
Vietnamese Government will, be able to invest more on infrastructure. Policy. Services. System, to improve the quality of living if they do not have to worry about a huge national debt there. Are three main factors that cost Vietnam high rate of public debt first. And foremost massive. Investment, is the major factor which is regarded as the root of public, debt fix. My nature for road bridges, and other infrastructures. Feared and expanded, are taken, from the state budget which, has been borrowed, from domestic. And foreign credit, institutions. According. To the statistic, res, construction, cost about 20 million dollar per kilometer why. It requires to be repaired, or reviewed, within two years after work, similarly. Vietnam. Recently, wasted, a large amount of money I'm building us a status, with. Such, unreasonable, costs, the rate of public death in Vietnam will increase rapidly. In. Addition, state-owned. Enterprises, have, been operated, in effectively, costing, state has to fear they're losing money in. Reality, there, are 12. Investment. Projects that are not effective, and need to be handled by the Ministry, of Industry and Trade the, Ministry, of Finance reports, that 72. Other investment, project of state-owned. Enterprises are, not feasible and are, likely to suffer losses this. Has increased the pressure on the public debt burden on the government. Secondly. The, lack of transparency in use of Lawrence plays an important, role in leading increasing. Public debt Menem. Has a variety of projects, we raise capital higher and it was calculated, before for. Instance in 2008. The Catlin hideaway project, was launched with a total, investment of. 552. Million, dollars by. 2016. The, total access the terminal increase, to. 868. Million dollars, up, more than, 1.5. Times the, initial capital including. 669. Million-dollar. In Chinese loans which, we have to create 1.2. Million per day for the interest. Honestly. Speaking this project, is not an effective investment. Unfortunately. Most, of it Nam's public investment, as perform a slow progress for three, to four times as much higher price than expected. Whether. Capital was actually, invested, in the right directions, and leader, really pulled the national interest first when, so many project, lost money delayed, changed, many new contractors, to be completed. Another. Faction is corruption. There. Are a number of inadequacy. In budget that exacerbate, the public, debt in the, period of 2011. To, 2016. 50. Province's, receive, balanced subsidized from the central but, used in effective, local, budget revenues. The. Lack of strict monitoring, mechanism, and strict sanctions as well make, the state budget lose all those subsidized are not counted, as local, government, debt subsidizing. Local government, increases, the burden of the budget as well, as increasing, public debt, additionally. In government, spending current. Expenditure, accounted, for 71. Percent that. Payments, are packed for twenty. Four point five percent the. Remaining, four 25%. Of total budget, for investment.
According. To the forecast of socio-economic, development. Of Vietnam until. 2020. We, still have to borrow to cover the investment, gap so. What should we do to avoid debt crisis, and remain safe here. Are some policy, recommendations. Firstly. Public, debt depends on economic, growth which is essential, condition, to increase revenues, for the state budget and reduce the pressure on a public, debt to do so it is necessary, to renovate, the economic, model improve. The organizational. Apparatus. Of state, agency, and invest, in key area, to avoid losses. State-owned. Enterprises, operate, less effectively, than private enterprises. State-owned. Enterprises, that, suffer, loss caused many negative, impact on the state capital losing autonomy, the. Dependence, of the state-owned enterprises, should be reduced so lava enterprises. Operate, independently, and complete. Fairly, with, the private enterprises, and the foreign enterprises. Only. Then will it improve, the competitiveness, of, state-owned, enterprises. Secondly. Public. Death in Vietnam depends on the effectiveness, of missing a performance, of state-owned, enterprises. Economics. Is first say that the, government, should seek for effective, management solutions. The, cancellation, of public, debt should be changed to obtain, the most accurate data on proper type of travellin, and state-owned, enterprises. Mobilize. Domestic, petrol instead of borrowing foreign, capital in. Fact citizens. Money is perfectly. Suited, for buying, government bonds, especially. In this situation, when, we have to borrow from high interest rates clear. Fiscal, discipline, should be implemented, avoiding. Budget deficits, reviewing. Investment, projects, prevent, corruptions, and transparency. Lastly. Have, strict punishments, with sign of mistake in economic, project causing great losses to the state reviewing. The effectiveness, of project, in the process of implementations. Are about, to implemented, in the coming time, well. It finally comes to an end thank, you so much for watching carefully and patience.