Vietnam speeds up disbursement of economic recovery package
- 139
- Business
- 20:45 04/03/2022
Vietnam will soon disburse at least 50 percent of the 350 trillion VND (15.42 billion USD) economic recovery package, the largest in its history, aiming to reboot the country’s economy after a long period of social and mobility restrictions due to the COVID-19 pandemic.
Vietnam will soon disburse at least 50 percent of the 350 trillion VND (15.42 billion USD) economic recovery package, the largest in its history, aiming to reboot the country’s economy after a long period of social and mobility restrictions due to the COVID-19 pandemic.
The package is part of Government Resolution 11/NQ-CP issued on January 30 on socio-economic recovery measures, and Resolution 43/2022/QH15 on fiscal and monetary policies.
The programme will support business and long-term national development, according to the Minister of the Ministry of Planning and Investment (MPI) Nguyen Chi Dung.
He said the economy would encounter many difficulties this year, however, Resolution 11 would create new drivers for the country’s growth in 2022 after two years of interruption.
Deputy Minister of MPI Tran Quoc Phuong said his ministry had asked agencies to urgently carry out support policies for businesses. Ministries and provinces have to send their monthly reports on the results to the MPI for submission to the Government.
Phuong said many ministries and agencies have prepared support policies for businesses. For instance, the Finance Ministry has reduced value-added tax for businesses and the State Bank of Vietnam is developing and collecting comments for the Draft Decree on interest rate support from the State budget for loans of enterprises, cooperatives and business households.
The programme stipulates that the opening of the economy should adhere to the investment in healthcare. It also announces a detailed roadmap for reopening tourism, aviation, entertainment, culture and arts, while ensuring pandemic safety.
Under the programme, a support package worth 6.6 trillion VND will be spent on providing housing rental subsidies for labourers who are working in industrial parks, export processing zones and key economic regions.
Those who return to work will receive support in cash for renting houses in three months, and they can access capital for production development with a loan worth up to hundreds of millions of Vietnamese dong.
Under the programme, VAT reduction has been applied. Accordingly, the Government slashed the value-added tax rate from 10 to 8 percent earlier this month.
Drastic implementation
Prime Minister Pham Minh Chinh on February 12 signed a dispatch calling for speedy execution of the socio-economic recovery and development programme as well acceleration of disbursement.
Accordingly, the Prime Minister requested the effective implementation of the COVID-19 pandemic prevention and control programme for 2022-2023 and work to ensure safe production.
Government agencies are required to develop specific action programmes and plans to carry out Resolution No 1, with a focus on coordination of monetary, fiscal and other policy tools to maintain macroeconomic stability, curb inflation and ensure safety of credit institutions.
At a conference on the Resolutions of the Government and the National Assembly on fiscal policy for economic recovery last month, Deputy Prime Minister Le Minh Khai emphasised that resources should be allocated appropriately to avoid the "ask - give" approach and slowing down the programme.
Phan Duc Hieu, a standing member of the National Assembly’s Economic Committee, said ministries and agencies must promptly issue regulations to put policy into practice.
Economist Can Van Luc said that the recovery programme was feasible and absorption capacity would be ensured.
Luc added that it was essential to improve the coordination of ministries and agencies involved in fiscal and monetary policy. This would neutralise the money supply, as well as control interest rates and inflation.
Luc said Vietnam needed to accept the increasing public debt and budget deficit and rising credit growth under control in the 2022-2023 period. The country could increase its budget spending and credit growth at a reasonable level of between 13-14 percent per year. From 2024, the Government will start controlling these balances in a healthier way.
He was upbeat about a positive recovery for the world and Vietnam's economies. The world's economic growth is expected to grow between 4.5- 5 percent and Vietnam to be around 6.5-7 percent.
Many economists said that ministries and agencies involved in deploying the programme needed to consult the business community to quickly adapt to make the programme more effective.
According to en.vietnamplus.vn
Related news
- The potential of the blockchain and cryptocurrency
- Electricity price hike and the long-term energy dilemma
- Institutional obstacles "tie up" enterprises and challenge economic growth
- Vietnam stands poised to seize opportunities in the semiconductor industry
- Southeast enterprises integrate renewable energy into production
- ‘'Bầu Đức'’ and the banana revolution at Hoang Anh Gia Lai
- Foxconn expands investment with additional $80 million for chip production in Bắc Giang
- The National Assembly supports strong decentralization in public investment
- Dr. Nguyễn Văn Thân, Chairman of Vinasme: The 15-17% preferential tax rate fails to truly support small and micro enterprises
- Real estate capital faces risks from credit to bonds
- Vietnam emerges as a new hub in the global semiconductor industry
- Foreign investment: A key driver of Vietnam's economic growth
- Draft resolution on commercial housing: A new opportunity for the real estate market
- VINASME Championship SHB Cup 2024 Golf Tournament: Business leaders shine with elite swings
- Numerous policies supporting businesses in opening shipping routes through Nghi Sơn Seaport
- Removing the "bottleneck of bottlenecks" to unlock production capacity and tap into all development resources
- What can be learned from VinFast's success after becoming the best-selling car brand in Vietnam?
- Renewable energy: Opportunities and challenges for the NetZero 2050 goal
- What should real estate businesses do during a recession cycle?
- Clear legal framework needed to regulate online pharmaceutical business
#business households
Ho Chi Minh City allocated funding to support small and medium enterprises in digital transformation
Ho Chi Minh City will provide support to small and medium enterprises (SMEs), cooperatives, and business households that meet the criteria as per regulations, with solutions and funding for digital transformation.
Land and Housing Laws: Catalysts for Vietnam's Real Estate Boom
The Land Law, the Real Estate Business Law, and the Housing Law will come into effect on August 1, creating a domino effect to resolve long-standing issues in the real estate market, fostering healthy market development...
Đọc thêm Business
Electricity price hike and the long-term energy dilemma
With EVN's third price hike since 2023, rising electricity costs burden households and industries. Experts warn that sustained losses threaten future power projects, urging reforms to boost investment and ensure energy security.
Vietnam stands poised to seize opportunities in the semiconductor industry
In the context of a rapidly evolving global economy driven by digitalization, the semiconductor industry has emerged as a key strategic pillar.
Pilot project for commercial housing to expand land use rights
The National Assembly Standing Committee has submitted a pilot project on commercial housing through land use rights agreements for National Assembly consideration, aiming to unlock resources.
The National Assembly supports strong decentralization in public investment
The National Assembly has approved a policy of decentralization in public investment management, demonstrating a commitment to economic development and creating opportunities for local governments to mobilize resources.
Assoc. Prof. Dr. Tran Kim Chung: The 1987 Land Law laid the foundation for the real estate market
Assoc. Prof. Dr. Tran Kim Chung, former Deputy Director of the Central Institute for Economic Management, states that the 1987 Land Law laid the groundwork for the development of the real estate market.
Bank interest rates on 31st October: Major players compete fiercely
Bank interest rates have been highly volatile, with one bank making its second rate adjustment in the month as of October 31, 2024, underscoring the competitive landscape.
Amendment of the PPP Law: A new direction to unlock investment resources
To address obstacles in investment through the PPP model, the Ministry of Planning and Investment has submitted a proposal to amend the PPP Law, creating a more favorable legal framework for investors.
Real estate capital faces risks from credit to bonds
Amid global economic turbulence, the real estate market faces significant risks from bank credit and corporate bonds.
Foreign investment: A key driver of Vietnam's economic growth
In the face of global economic fluctuations, attracting foreign direct investment (FDI) has become a bright spot for Vietnam.
Draft resolution on commercial housing: A new opportunity for the real estate market
Amid the challenges facing Vietnam’s real estate market, the addition of a Draft Resolution piloting commercial housing projects brings renewed hope to citizens and promises to boost economic development.