Apr 22, 2020 / 13:13

Best economic stimulus is to loosen business shutdown: VCCI

As Vietnam is among a handful of countries that are effectively containing the pandemic, it has a golden chance to step out of the economic deceleration much sooner than other economies.

At a time when international markets are struggling with negative impacts of the Covid-19 pandemic, the government’s decision to open the domestic market would be considered the best economic stimulus package at the present, according to Vu Tien Loc, chairman of Vietnam Chamber of Commerce and Industry (VCCI).

 VCCI Chairman Vu Tien Loc. Source: VCCI. 

An easing of social distancing order would help the business community to resume operation and which is even better than financial support packages in some cases, Loc told VnExpress.

An opening of the domestic market would kick-start the supply chain which was once disrupted with the suspension of restaurants, hotels, or stores.  The relaxing of social distancing orders is particularly important as Vietnam is among a handful of countries that are effectively containing the pandemic and in a condition to relaunch the economy, Loc commented.

According to Loc, Vietnam has a chance to step out of the economic deceleration much sooner than other economies, and this is a golden opportunity.

As no more coronavirus cases have been detected in the country for over the past few days, Loc said this is the right timing to ease anti-virus measures. He stressed businesses must fully comply with safety regulations.

Moreover, the government’s relief packages would not have many effects as expected if social distancing is still in place and prevents the resumption of business activities, Loc asserted.

A survey conducted by the VCCI showed 50% of enterprises would be unable to survive in more than six months if the pandemic persists for a long period, costing the jobs of millions of workers.

At a government meeting on April 20, Prime Minister Nguyen Xuan Phuc said as the pandemic situation is getting better, Vietnam could gradually ease social distancing orders.

However, Phuc requested government agencies to remain cautious and stay focused on the fight against the pandemic.

As of today, no new cases of Covid-19 infection have been reported, lengthening the zero-case streak to nearly six days with 268 in total and no deaths.

VinaCapital in its latest report suggested since Vietnam’s public health officials have been able to “flatten the Covid curve”, it is expected the re-opening of Vietnam to be proceeded fairly smoothly once the decision has been made for this effect.