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Vietnam stands out as among the healthiest in the region in terms of fiscal leverage
According to Ministry of Finance, Vietnam’s public debt-to-GDP ratio has fallen sharply from nearly 56% in 2020 to just 34% in 2024, well below the statutory ceiling of 60%. This is not only a remarkable fiscal consolidation within just a few years but also places Vietnam at a much lower level than many regional peers.
Why does this matter? A leaner debt profile gives Vietnam ample room for healthy leverage to finance growth priorities, from infrastructure and energy transition to digital transformation and human capital development.
As the country sets its sights on becoming a high-income economy in the coming decades, this fiscal space becomes a crucial advantage. In a world where many emerging markets are struggling with debt burdens, Vietnam stands out with resilience, creating the foundation to power the next wave of growth.
