return icon

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.

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. 


Vietnam looks forwards to stronger investment from US, Europe

Vietnam is hoping to attract more investment from the US, Europe and major global enterprises under a recently approved strategy on foreign investment cooperation.

People in HCMC wait in long queues at passport office on July 1

On July 1 afternoon, thousands of people lined up waiting for passports at the Immigration Department on the first day of issuing ordinary passports in the new form.

Three SARS-CoV-2 Omicron variant BA.5 cases detected in Hanoi

Although the number of daily new cases of Covid-19 is decreasing sharply, Hanoi has recorded three infections caused by the BA.5 sub-strain of the Omicron coronavirus variant.

Binh Duong ranks first nationwide by GDP

The southern province of Binh Duong took the lead among Vietnam’s 63 provinces and cities in terms of gross domestic product (GDP) per capita in 2021, according to the latest data released by the General Statistics Office.

Tan Hoang Minh allegedly appropriates VND8 trillion of investors

Tan Hoang Minh Group, a major property developer based in Hanoi, is facing charges of misappropriating over VND8 trillion from investors, said a Ministry of Public Security representative.

Businesses get set for circular economy

Vietnam’s rapid economic growth has caused environmental challenges which have forced the nation to focus on fostering the development of a circular economy with less pollution and reused and recycled products.

Over 60,000 fishing vessels urged to seek safe shelter from storm Chaba

Approximately 60,000 fishing vessels operating at sea have been urgently notified to avoid dangerous areas and seek safe shelter from incoming Storm Chaba, according to the National Steering Committee for Natural Disaster Prevention and Control.

Siem Reap - Da Nang air route resumed

Flight K6 840 departed from Siem Reap of Cambodia at 3:35 pm on July 1 and landed safely at Da Nang International Airport at 5:35pm on the same day.

Embassy: two Vietnamese arrested in Spain for alleged sexual assault

Police on the Spanish island of Mallorca on June 25 said they had arrested two Vietnamese citizens accused of raping a 17-year-old girl and privacy violation, according to the Vietnamese Embassy in Spain.

The key role of top leaders in fighting corruption in Vietnam

Head of the Party Central Committee's Commission for Internal Affairs Phan Dinh Trac has emphasized the important role of top leaders, especially Party Secretary General Nguyen Phu Trong, the people and the media in fighting corruption.

Huge costs for filling Ha Long largest open-cast coal mine

It would cost about VND 1.20 trillion (USD 52.18 million) to fill the Nui Beo open-cast coal mine pit in Ha Long City after closure.

Cutting taxes on petrol products is more urgent than ever

“VND50,000 please. No, just VND30,000."  “VND100,000, please. No, only VND70,000." These were conversations I heard yesterday at a filling station.

28 provinces, 21 central hospitals report lack of drugs, medical equipment

Twenty-eight healthcare departments and 12 out of 21 central hospitals have reported they lack drugs.

HCMC proposes developing huge port in Can Gio

The HCMC government has proposed developing an international container port in the outlying district of Can Gio with an estimated investment of some US$6 billion to aid the local marine economy.

500 tonnes of Vietnamese-labelled rice exported to EU

Loc Troi Group JSC exported nearly 500 tonnes of rice labelled with its own brand name “Com Vietnam Rice” to the EU markets in June.