3.2. Liquidity
Liquidity measures a country’s capacity to pay debt in the short term. It is normally calculated as the ratio of short term external debt and/or external debt service over reserves or exports. Since over 80% of the external public debt is long term with preferential interest rates, Vietnam faces almost no liquidity risk. Its short term external public debt to reserves ratio is approximately 20% while the external public debt service to reserves ratio is just below 10%. The figures were well under the safety threshold warned by international agencies.