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Apr 04, 2020 / 15:34

Vietnam Fin Min expands fiscal stimulus package to US$7.64 billion

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).

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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.