Vietnam announces US$12-billion stimulus package for enterprises

Prime Minister Nguyen Xuan Phuc on March 6 signed a directive stipulating the deployment of a credit package worth VND250 trillion (US$10.86 billion) and a fiscal stimulus package of VND30 trillion (US$1.3 billion) to help businesses cope with the Covid-19 epidemic.

Illustrative photo.

In addition to financial support, the directive also includes a number of solutions to address difficulties of the business community during the epidemic, with the aim of realizing the dual target of preventing the epidemic and boosting economic growth.

PM Phuc requested the State Bank of Vietnam (SBV) 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, lowering and waivering of interest rates for customers affected by the Covid-19 epidemic.

The SBV, the country’s central bank, is responsible for promoting non-cash payment and lowering transaction costs for e-payment.

The SBV should submit a plan for the pilot implementation of mobile money, which allows people to transfer money through cellphone accounts instead of a bank account, to the PM for consideration as soon as possible.

Phuc also requested no price hikes of essential goods during the first and second quarters.

The Ministry of Finance (MoF) is tasked with submitting to the government in March a draft decree on prolongation of tax payment time limit and land lease fees for companies and individuals hurt by the epidemic.

Additionally, the MoF should propose a mechanism to reduce taxes and fees worth around VND30 trillion (US$1.3 billion) to support enterprises to overcome difficulties caused by the Covid-19 epidemic.

Phuc requested the Ministry of Transport to simplify administrative procedures and reduce logistics costs for companies.

Meanwhile, Phuc ordered the Ministry of Industry and Trade (MoIT) to set up plans to diversify sources of input materials for domestic production; boost exports via official channels to China and other countries.

The MoIT is requested to step up efforts to prevent smuggling, trade fraud and market manipulation.

The PM set sights on higher disbursement rate of public investment funds, aiming to disburse all the remaining funds carried forward from 2019 and of the target for 2020.