Vietnam considers US$15 billion for economic recovery

The Government of Vietnam is considering a financial package worth VND350 trillion (US$15.2 billion) for economic recovery in 2022-2023.

An overview of NA extraordinary meeting on Jan 4. Photo: VNA

The government made the proposal at the National Assembly (NA)’s one-week extraordinary session starting today [January 4] that will address four urgent issues with a focus on Covid-19 response and recovery plans.

The package includes fiscal support worth VND291 billion ($12.65 billion), monetary support of VND46 trillion ($2 billion), and VND10 trillion ($434,000) support through other funds, Minister of Planning and Investment Nguyen Chi Dung said at the NA meeting.

The supporting package will cover five major fields including economic reopening together with better health capacity and anti-pandemic control that is estimated to cost VND60 trillion ($2.6 billion), employment and social welfare at a cost of VND53 trillion ($2.3 billion), business support VND110 trillion ($4.78 billion), and VND114 trillion ($4.95 billion) for infrastructure projects.

Main supporting measures are administrative reforms, tax deduction and exemption, interest rate reduction, preferential loans, improving the medical system, better social welfare and vocational training, boosting digital transformation, and assisting tourism. 

To have financial resources for the plans, the Government proposed to increase the budget deficit by VND240 billion in 2022-2023.

Head of the NA’s Economic Committee Vu Hong Thanh said at the meeting that the body agreed with the necessity of fiscal and monetary policies to support the economic recovery.

Regarding the budget deficit, the committee agreed with an increase of 1% to 1.2% of GDP in the next two years of implementing the plans.

Specifically, the committee asked the government to increase taxes on securities transactions, real estate, digital business models, together with imposing excise taxes on the list of items that must be restricted, including alcohol, beer, and cigarette.

National Assembly Chairman Vuong Dinh Hue at the meeting on Jan 4. Photo: VGP

Addressing the opening session of the one-week plenary, NA Chairman Vuong Dinh Hue said the lawmakers will discuss four main issues namely Draft Resolution on fiscal and monetary policies to support the implementation of the economic recovery; Investment in the North-South expressway project in the 2021-2025 period; several drafts amended laws on Public Investment, Investment with a focus on public-private partnership (PPP), Investment, Bidding, Electricity, Enterprises, Special Consumption Tax, and Civil Judgment Execution; Draft Resolution on piloting specific mechanisms for the development of Can Tho City.

The top leaders attending the session held in Hanoi are General Secretary of the Communist Party of Vietnam (CPV) Nguyen Phu Trong, President Nguyen Xuan Phuc, Prime Minister Pham Minh Chinh, and NA Chairman Vuong Dinh Hue.

Delegations of 62 out of 63 cities and provinces nationwide attended the meeting through a video link that will last until January 11, except for the in-person gathering of the Hanoi delegation.

The meeting was broadcast live on Vietnam Television (VTV), the Voice of Vietnam (VOV), and NA Television.  

From left: Prime Minister Pham Minh Chinh, NA Chairman Vuong Dinh Hue, General Secretary of the Communist Party of Vietnam (CPV) Nguyen Phu Trong, President Nguyen Xuan Phuc. Photo: VGP