Vietnam to have support packages to cover all affected by COVID-19

  • The Ministry of Planning and Investment (MPI) will look to extend some economic stimulus policies until 2021 if the COVID-19 pandemic continues.
  • Minister Nguyễn Chí Dũng held a meeting to discuss solutions amid the second wave of the pandemic in Ha Noi in the week of 10 Aug 20, saying: “MPI will work on policies that best support affected stakeholders and stimulate economic growth.”
  • In the first wave of the pandemic, Vietnam introduced two main support packages to help local people and businesses. They included a fiscal policy which was to extend deadlines and reduce the burden of tax and fee payment worth VND180tr (USD7.78bn) and a social security support package worth VND62tr.
  • However, some experts said the effectiveness of the above support packages was still quite limited.
  • According to a representative from the Ministry of Labour, Invalids and Social Affairs, there were 15.8 million people receiving support worth VND20tr from the VND62tr package, while businesses could take only VND400bn, or less than 1% of the package value.
  • At the same time, data from the General Statistics Office said 17.6 million people have had their income reduced, emphasising that low incomes led to difficulties in stimulating domestic consumption.
  • The data also said the unemployment rate increased at the highest rate in the past 10 years, especially unemployment in the working group aged 15-54 accounting for 30.7% of the total.
  • The ministry also suggested extending the current policies on debt payment rescheduling, interest and fee exemption and reduction as per circular No. 1 of the State Bank of Vietnam.
  • Minister Dũng said that there would be a full impact assessment report of how the policies and supporting packages have met demand. Along with this report, the ministry would propose new policies with specific capital resources, time and manner of support.

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