Vietnam approves $15bn to revive economy

Vietnam approves $15bn to revive economy

Health workers wearing personal protective equipment (PPE) collect swab samples from local residents for Covid-19 coronavirus testing at Dong Xuan market in Hanoi, Vietnam, on Jan 6, 2022. (AFP photo)
Health workers wearing personal protective equipment (PPE) collect swab samples from local residents for Covid-19 coronavirus testing at Dong Xuan market in Hanoi, Vietnam, on Jan 6, 2022. (AFP photo)

Vietnam's parliament approved a stimulus package worth about 347 trillion dong (US$15.3 billion) to revive an economy battered by Covid-19 and harsh lockdowns with a focus on assisting virus-hit businesses, workers and increasing infrastructure spending.

The National Assembly voted on a plan that had been significantly reduced over concerns it would spur inflation.

Vuong Dinh Hue, chairman of the National Assembly, told a forum in Hanoi last month that the government seeks "sustainable" growth that ensures macroeconomic stability while controlling inflation, according to a posting on the government's website. Policymakers in November were weighing 800 trillion dong in stimulus measures. 

Vietnamese officials are seeking to mend an economy damaged by tough anti-virus lockdowns, which led to factory closures that crippled global supply chains.

The stimulus package includes about 170 trillion dong in infrastructure spending for 2022-23. It also has measures to reduce bank loan interest rates by about one percentage point and delay loan payments to help businesses. The central bank will intervene in the money market by selling dollars to stabilise foreign exchange rates when needed. The parliament also approved an increase in the state budget deficit by a total of 240 trillion dong for the 2022 and 2023.


Do you like the content of this article?
COMMENT
TRENDING

Telemedicine apps take off

Insured Covid-19 patients can now receive remote treatment via three applications -- Good Doctor, Mordee and Clicknic. Over 5,300 patients have registered for telemedicine apps since July 11, said the National Health Security Office (NHSO).

08:03

2,143 new Covid inpatients, 29 more deaths

The country registered 29 more Covid-19 fatalities and 2,143 new cases admitted to hospitals during the previous 24 hours, the Public Health Ministry announced on Thursday morning.

07:46

Warning issued over DeFi transactions

The Securities and Exchange Commission (SEC) is warning investors to exercise caution when making decentralised finance (DeFi) transactions.

06:23