03 Risks in State Treasury Management Operations

00:54, 11/07/2024

Decree 24/2016/ND-CP has been signed and promulgated by the Government of Vietnam, regulating policies on the management of the state treasury.

Managing the state treasury funds will face numerous risks. Notably, Decree 24/2016/ND-CP outlines the following risks:

- Payment Risk: This type of risk arises when the state treasury revenue cannot meet the state treasury expenditure obligations; or when the temporarily idle state treasury funds have not reached their maturity for collection; or when loans and bond issuances are insufficient to guarantee state treasury expenditure obligations.- Risk in the Use of State Treasury Funds: This type of risk arises when the temporarily idle state treasury funds cannot be promptly and fully collected upon maturity; or due to adverse fluctuations in market interest rates or adverse fluctuations in exchange rates.- Other Types of Risks: This type of risk arises from inaccurate assessment of the extent of temporarily idle state treasury funds or temporarily deficient state treasury funds; or due to information technology system malfunctions; or due to other force majeure events.

More details can be found in Decree 24/2016/ND-CP, effective from January 01, 2017.

- Thanh Lam -

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