Vietnam considers mobilizing private resources to aid economic recovery efforts

The upcoming economic recovery program may include resources from funds from the private sector or the non-state budget.

Vice Minister of Planning and Investment Tran Quoc Phuong gave the remarks at a monthly government meeting on December 2.

Vice Minister of Planning and Investment Tran Quoc Phuong. Photo: Nhat Bac

According to Phuong, the detailed plan for the program has been submitted to the Government, with the size of the program under consideration.

Phuong, however, suggested the main instruments to carry out this program would be based on monetary and fiscal policies.

“The Government would mobilize social resources via projects under the public-private partnership (PPP) mechanism,” he said.

On the same day, the Chairman of the Economic Committee under the National Assembly (NA) Vu Hong Thanh said the NA would hold an economic forum to seek experts’ opinions regarding the socio-economic recovery package.

Thanh said one of the main objectives of the program is to identify the scale of the program, including the exact amount from the fiscal and monetary perspectives.

“Careful consideration is required to discuss the sources of stimulus packages, especially from lending, repayment, and absorption capabilities of the economy,” he said.

Regarding the recovery program, Vice Minister Phuong said it would cover five groups of solutions on healthcare, social welfare, support businesses, cooperatives, and households, promote public investment and administrative reforms.

“The program is expected to cover fields that are in need of support and have the potential to recover during the post-pandemic period,” Phuong said.

He expected the program would last for two years, focusing on the 2022-2023 period, but could be extended depending on the pandemic situation, especially the progress of large-scale public projects such as the Eastern North-South expressway.

In an online national strategic dialogue between Vietnam and the World Economic Forum held late October, Prime Minister Pham Minh Chinh stressed the determination of the Government to push for socio-economic development once the pandemic is pushed back, in turn realizing the country’s desire for prosperity.

The NA on November 12 adopted a resolution on socio-economic development for 2022 that set the GDP growth target of 6-6.5% for next year,  which would result in a GDP per capita of $3,900.