Vietnam gives green light to US$15 billion stimulus plan for economic recovery

Stock photo by Silver Ringvee for Unsplash

The parliament of Vietnam has approved a stimulus package worth 347 trillion VND (US$ 15.3 billion) for those severely affected by the Covid-19 pandemic, especially businesses as well as expanding infrastructure expenditure amidst harsh lockdowns.

Since the government is seeking sustainable growth, that ensures macroeconomic stability as concerns about inflation raised alarm over the National Assembly last month.

Officials are attempting to repair an economy that has been harmed by strict anti-virus restrictions that have resulted in industrial closures and crippled global supply lines.

Policymakers were considering stimulus measures worth 800 trillion VND (US$ 35 billion) in November.

According to statements from the government, infrastructure spending of around 170 trillion VND (US $7.5 billion) is included in the stimulus programme for the next financial year of 2022–23 with 1% loan interest that has been offered to delay installments.

The central bank will also intervene in the money exchange market by selling US dollars to stabilize foreign exchange prices, while the parliament approved a state budget deficit of 240 trillion VND (US$10 billion) for the next two years.

SOURCE: Bangkok Post

World News

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