Vietnam gov’t expands credit aid package to US$12.73 billion

The monetary aid package for businesses and individuals hurt by the pandemic has been expanded to VND300 trillion (US$12.73 billion) from the previous VND250 trillion (US$10.86 billion), according to Prime Minister Nguyen Xuan Phuc.

Prime Minister Nguyen Xuan Phuc at the meeting. Source: VGP.

Enterprises should be provided with sufficient credit and utmost support to maintain businesses and operation, Phuc stressed at a government meeting on April 8.

The monetary aid package is set up 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.

“Never before have countries all over the world simultaneously implemented a ranges of economic stimulus packages to overcome recession,” Phuc stressed, adding the extent of damage is more severe than the economic crisis in 2008.

Phuc requested the banking sector to further cut and waive interest rates for the business community, adding “banks can survive only when enterprises survive.”

According to Phuc, key economic sectors have suffered declining growth and many enterprises went bankrupt, the situation, however, could become even worse if the pandemic persists.

Taking into account the left over amount in 2019, the disbursement target for 2020 would total VND700 trillion (US$30 billion), which should be fully disbursed this year as a measure to beef up economic growth, added Phuc.

Phuc asked the Ministry of Industry and Trade to create favorable conditions for exporters and ensure supplies of basic necessities for the domestic market of 100 million people.

Meanwhile, the Ministry of Finance is tasked with proposing financial solutions, especially in terms of taxes and fees, to help enterprises and the people cope with the impacts of the pandemic.

However, Phuc noted the fight against the Covid-19 remains the top priority, and only when the pandemic is put under control, then businesses and production activities can return to normal.

The PM on April 8 signed a decree on five-month delay of deadline for payments of taxes and land rental fees worth VND180 trillion (US$7.63 billion), applicable for enterprises and individuals affected by the Covid-19 pandemic.