Vietnam’s real public debt may make up 98.2% of the national GDP, factoring in state-owned enterprise debts, which are not guaranteed by the government, as well as debt of the fundamental construction area.

These numbers were given by Dr. Pham The Anh at a meeting on marco-economic management policy for 2014, held by the Ministry of Planning and Investment recently.

Dr. Anh cited a report submitted by the government to the National Assembly recently, which said that the total debts of wholly state-owned enterprises (SOEs) were estimated at VND1,550 trillion (USD73.8 billion) in late 2012, equal to around 52.5% of GDP.

After deducting the rate of 11.7% of the debt guaranteed by the government, 40.9% of the SOEs are not guaranteed.

Despite not receiving the government guarantees, the government still has to support SOEs when they make losses to save them from bankruptcy.

He cited some typical examples, such as the USD600 million debt owed by Vietnam Shipbuilding Industry Group (Vinashin) and the debt worth thousands of billions of VND by Dong Banh Cement Company.

If the SOE debts, which are not guaranteed by the government, as well as the debts of the construction sector are included, Vietnam’s real public debt will account for 98.2% of the national GDP, he said.

At the same time, the Ministry of Finance recently announced that the country’s public debt was just 55.7% of the national GDP, still well below the debt ceiling of 65% of the GDP set by the National Assembly.

According to the Vietnamese Law on Public Debt Management, which took effect from January 1, 2010, the debts of SOEs are not considered part of the national public debts.

However, Dr. Anh said, in the context so many losses by SOEs, with many of them facing the risk of bankruptcy, their debts should be considered, including both those guaranteed and not guaranteed by the government.

According to Dr. Anh, 105 groups' and corporations' owe an estimated total of VND1,349 trillion (USD64.2 billion), holding more than 80% of the state-owned sector debt.

Among those, the Electricity of Vietnam (EVN) owes VND112.6 trillion, Vietnam Airlines VND27.8 trillion (USD1.32 billion), Vietnam Expressway Development Corporation VND14.3 trillion (USD666.7 million) and Vietnam Posts and Telecommunications Group VND6.9 trillion (USD333.3 million).

As of December 13 of this year, the total losses from these groups and corporations reached VND29 trillion (USD1.38 billion). Dr. Anh warned that in the end government may have to bear the burden.