III.

*8 recommend solutions to face with government’s borrowing money:

1. The government should develop a public borrowing money strategy suitable for
the economic-society development plan, local expenditure and government budget
plan in each period. The public borrowing money strategy determine clearly: lending
purposes, scale of capital mobilization, using capital objects, expected efficiency.

2. Ensure the sustainability of government debt scale and government debt

growth rate, the ability to pay in various instances and limit risks, expenses.
Establish public debt safety measure, often assess risks from government debt,
raise state budget, trade balance, financial reserve, foreign exchange reserve,… to
pay debt.

3. Controlling strictly on-lending loans and government guaranteed loans.

On-lending loans and government-guaranteed loans are activities that often arise when
businesses need to mobilize capital in the international capital markets, but are not
credible enough to take out debt themselves. At the same time, the Government can help
businesses access to large-scale, low-interest international capital

4. Publicity and transparency in goverment debt management. To implement

this principle properly, public debt must be calculated and determined in the state
budget decision and certified by an independent professional body.

5. The government need to change growth model depend on capital, improve

productivity and increase the effect of state-owned enterprises in order to
raise capital expenditures and use fiscal policy in effective way.

6. Reduce the national budget deficit. As the budget deficit needs offset, the
consequence is that the solvency is worse.

7. The goverment should promote international cooperation to attract foreign

currency revenue. Attract foreign currency by developing export sectors such as:
agricultural products, seafood, footwear and minerals. Develop tourism, attract
foreign investment into economic projects. In addition, the labor force of our
country is abundant. This is a condition for developing all nation’s strengths as
well as to attract investment from other countries.

8. Punish officials severely who has wrong behaviour in economic projects lead to
nation’s massive losses. Review the proceeding projects’s effectiveness in the next time.