Public Debt in Sri Lanka and Pakistan: Policy Implications for Vietnam

Abstract

This article analyzes the causes of the public debt crisis in Sri Lanka and Pakistan and drawspolicy lessons and implications for Vietnam. The experiences of Sri Lanka and Pakistan show that Vietnam needs to maintain reasonable budget revenue through strengthened tax management and avoid excessive tax incentives. Vietnam needs to be cautious with commercial and short-term loans and diversify long-term financing sources for public spending and investment in the coming years. To increase resilience to global economic instability, Vietnam needs to further diversify its export markets and promote a netter balance between exports and domestic consumption.