In response, the government is seeking parliamentary approval to issue an additional 11.5 trillion dong worth of bonds this year to finance development projects, it said in a statement issued late on Thursday.

The statement did not provide any forecasts on prices or exports of crude oil, which was Vietnam's largest cash earner last year. This month the government estimated that crude dropped to second place behind textiles due to the fall in global prices.

January to February's crude oil exports fell 42.4% from a year ago to an estimated US$958 million, the government said on Wednesday.

The statement said the government made the proposal on bond issues at Thursday's meeting of the Standing Committee of the National Assembly, or parliament, and that it won consensus from most of the delegates.

"While drafting the total investment using proceeds from government bonds, the government should consider national financial security with a permissible debt ratio, and controlling inflation," the statement quoted delegates as saying.

Final approval on bond issues would be decided in May at parliament's general session, it said.

The additional bond issues would bring Vietnam's total proceeds from government bond sales this year to 55 trillion dong, the statement said without giving further details.

Earlier this month the government said it planned to sell about 11.2 trillion dong worth of bonds to fund projects to boost economic growth this year.

The finance ministry will also sell dollar-denominated bonds on domestic markets this year to raise funds for key projects and to finance the state budget deficit, which has been projected at 4.8% of gross domestic product this year.

Reuters - March 2, 2009