return icon Vietnamnet.vn

US$15 billion bailout package a stimulus to economic recovery

Given the severe impact of COVID-19, the National Assembly’s recent approval of a VND350 trillion (US$15 billion) economic recovery package is considered by businesses and experts as an extremely important leverage and motivation moving forward.

{keywords}
Businesses long for the US$15 billion bailout package to be soon disbursed to support their ailing operation.

Businesses expect early disbursement 

Luu Ngoc Nam, the owner of a firm specialising in food, industrial catering, transportation, and warehousing in Hanoi, said that his businesses has almost been exhausted because of COVID-19. But he felt more motivated upon hearing that the national legislature has just approved a VND350 trillion economic recovery package.

“We are very pleased and hopeful that conditions for accessing this package will be easier. The State should create favourable conditions for businesses like us to get support in a quick and effective manner,” said Nam.

Similarly, Nguyen Anh Tu, director of Tu Anh Printing JSC in Thanh Tri district of Hanoi, shared that the prolonged impact of the COVID-19 outbreak has prompted the firm to go to great lengths to survive. During this period, contracted and printed products could not be delivered due to store closures, while all kinds of expenses continued to pile up, causing his business to endure numerous difficulties.

“If we can access this support package for production and business, we have more opportunities to recover. Though the source of support is not much, it is very valuable,” said Tu.

Dr. Nguyen Trong Dieu, chairman of the Vietnam Private Business Association, told VTC News that this highly-anticipated bailout package will be very useful as it meets the needs of people and enterprises that bore the brunt of the damaging impact of COVID-19.

“The economic recovery package, which also offers reductions in taxes, fees and charges, especially the value-added tax, will act as a stimulus to consumption during the pandemic,” stressed Dr. Dieu.

According to economist Le Dang Doanh, the country’s VND350 trillion relief package can be viewed as being relatively modest compared to similar packages introduced by some countries around the world. However, given budget limitations, this can be considered a great effort by the Government.

“I think the problem here is to implement it as soon as possible, just as the Prime Minister said the best vaccine is the earliest one,” Doanh suggested. 

Disbursing the package

In order to successfully deploy the package, Assoc. Prof. Dr. Pham Thi Hong Yen from the National Assembly Committee for Economic Affairs, insisted that support be delivered to the right recipients. In addition, she said it remains necessary to carefully assess the impact of the package on GDP growth over two years in 2022 and 2023.

“We must be careful about the overheating credit growth exceeding the regulations by the State Bank. It’s worth remembering that in 2009, we let credit growth skyrocket to 37% and eventually lead to inflation. Close monitoring must be put in place because businesses may cash in on this policy by borrowing and pouring money into risky areas such as securities and real estate,” she emphasised.

Sharing this viewpoint, economist Ngo Tri Long stated that during an economic recession, any country would require a bailout package to stimulate growth and restore the economy, but the most important factor is how to use it in the right manner.

“In my opinion, we should focus on the economic locomotives such as Ho Chi Minh City, Dong Nai, Binh Duong, Ba Ria - Vung Tau, and Hanoi. And key economic sectors such as tourism, aviation and transportation should first benefit from the package,” he suggested. “If these localities and sectors recover, this will lead to many businesses, satellite companies and other localities to wake up, revive and create jobs for labourers.”

The National Assembly on January 11 approved the Government’s VND350 trillion bailout package, with VND60 trillion to be earmarked for health care, VND53.15 trillion for social security and employment creation, VND110 trillion for business recovery, and VND113.85 trillion for development investment.

Source: VOV

Gov’t proposes US$15 billion economic recovery program

Gov’t proposes US$15 billion economic recovery program

The Government has submitted to the National Assembly for approval of an economic recovery and development program worth nearly VND350 trillion (US$ 15 billion) for the 2022-2023 period. 

MORE NEWS

Vietnam has huge potential for saving energy: experts

For a developing society and economy like Vietnam’s, energy is the engine behind growth, especially in post-pandemic recovery.

HCMC needs over US$3 bln for housing development

The People’s Committee of Ho Chi Minh City has just reported to the Ministry of Construction on implementing the housing policy and real estate market in 2022.

Blockchain industry yearns for new talent

A serious shortage of personnel has become a bottleneck hindering the development of blockchain companies, even though Vietnam is among the top five countries globally in terms of blockchain tech.

Vietnam tops SEA Games 31 medal tally with 125 golds

Vietnam had claimed 125 gold, 76 silver and 74 bronze medals as of May 18 evening, the sixth official competition day of the ongoing SEA Games 31, retaining the top position in the medal table.

Prime Minister Pham Minh Chinh concludes US trip

Prime Minister Pham Minh Chinh and his entourage arrived in Hanoi on May 19, successfully concluding their trip to the US to attend the ASEAN-US Special Summit, and to make visits to the US and the United Nations.

Raising the ‘Mekong river monster’, farmer pockets billions of dong

Ho fish (Catlocarpio siamensis), called the ‘Mekong river monster’, are being raised by farmers in cages on rivers in Vietnam.

Vietnam highlights vital importance of security and safety in East Sea

Senior Lieutenant General Hoang Xuan Chien, Deputy Minister of National Defense led a Vietnamese delegation to attend the ASEAN Defense Senior Officials' Meeting Plus (ADSOM Plus) held in Phnom Penh, Cambodia on May 18.

Two scientists win Ta Quang Buu Award 2022

Specialized scientific councils agreed to nominate five out of 48 dossiers of applications for Ta Quang Buu Award 2022 and its awards for young scientists.

Incumbent, former science, health, securities officials disciplined

Disciplinary measures have been issued for current and former officials of the Ministry of Science and Technology (MoST), the Ministry of Health (MoH) and the State Securities Commission of Vietnam (SSC) for previous wrongdoings.

45% of students have health problems while studying online

A recent survey found that 45 percent of students have had health problems after a long period of online study, according to the Ministry of Education and Training (MOET).

HCM City seeks permission to open casinos, admit people aged 18 and above

The HCM City People’s Committee has asked to allow it to open casinos at 5-star hotels, admitting people aged 18 or higher who have sufficient behavioral capacity and financial capability.

31ST SEA GAMES: UPDATES MAY 19

SEA Games 31: Vietnam defeat Myanmar in women’s football semifinal

Private banks coming strong against state-owned banks

For the very first time, a private bank has overtaken a state-owned bank in Vietnam in consolidated profits in the first quarter of the year.

More than 14 million people receive COVID-19 vaccine passports

The Ministry of Health announced that it has issued more than 14 million COVID-19 vaccine passports to the general public, a month from its official rollout on April 15.

The dreams of growth for Hanoi

In mid-October and early November 2021, when a lockdown was lifted, Hanoi’s leaders organized two dialogues with enterprises.
back_to_top