Vietnam Fin Min expands fiscal stimulus package to US$7.64 billion
The Hanoitimes - As impacts of the Covid-19 pandemic are growing, the figure represents a six-fold increase from the initial proposal of VND30 trillion (US$1.27 billion).
Vietnam's Ministry of Finance on April 3 decided to more than double the fiscal stimulus package in the second draft of a government decree from VND80.2 trillion (US$3.42 billion) to VND180 trillion (US$7.64 billion).
As the Covid-19 pandemic is wrecking more havoc on the local economy, the figure represents a six-fold increase from the first proposal of VND30 trillion (US$1.27 billion).
In the latest proposal, the ministry extends the scope of the fiscal stimulus package in forms of tax breaks, delay in tax payments, and reductions in land rental fees in five months, for new beneficiary groups.
In addition to companies of leather, wood, plastic, metal, manufacturing of car with up to nine seats, more businesses are included in the fiscal support package such as real estate; jobs consultancy; and entertainment. Enterprises, organizations, household businesses and individuals operating in supporting industries are also named as beneficiaries.
Credit institutions and foreign bank branches providing support programs for customers affected by the Covid-19 pandemic are also included in the fiscal stimulus package.
The ministry said tax payers only need to submit one single request for taxes and land rental fee deferral to local tax authorities, with the deadline on July 30, 2020.
Besides the fiscal stimulus package, Prime Minister Nguyen Xuan Phuc on March 6 requested the State Bank of Vietnam to instruct banks to provide a monetary aid package worth a total of VND250 trillion (US$10.86 billion) in forms of simplification of lending procedures, rescheduling of debt payment, reduction and waiver of interest rates for customers affected by the Covid-19 pandemic.
Meanwhile, to aid vulnerable people directly affected by the pandemic, the prime minister on March 31 announced a financial support worth up to VND30 trillion (US$1.28 billion).
Under the plan, people out of work, self-employed people, and household businesses forced to suspend operation could receive up to VND1 million (US$42.63) per month, while social beneficiaries and revolutionary contributors are entitled to VND500,000 (US$21.32) per person per month.
- Vietnam records fiscal deficit of over US$330 million in Jan-May
- Vietnam gov’t waives taxes to boost economic recovery
- Trade war, Covid-19 make Vietnam even more attractive to foreign investors: HSBC
- Vietnam gov't pushes for wider use of cashless payment
- S.Korea Kookmin injects US$100 million in Vietnam branches
- S&P maintains Vietnam’s sovereign rating at BB with stable outlook
- Vietnam needs to get ready for capital flight from China: PM
- Vietnam raises monthly taxable personal income threshold by 22%
- Vietnam budget transparency score in 2019 significantly improved: OBS 2019
- Vietnam in strong position to defend against external shocks: HSBC
Vietnam gov’t waives taxes to boost economic recovery
More than 340 Vietnamese citizens brought home from Taiwan
May 30: Newest Covid-19 patient in Vietnam is 1-year-old child
Singapore PM congratulates Vietnam on handling of Covid-19
Predictable legal environment to help Vietnam attract FDI post Covid-19: NTT Data Vietnam CEO
Scorching heat strikes Hanoi with temperature surging to 40 degrees Celsius
Hanoi to build sewage collection system to revive its dying river
More monetary easing measures still to come in Vietnam: Fitch
Iconic lakes in Hanoi