Workers make footwear products in Binh Tien Rubber Cooperative in Can Tho city to serve the domestic market and export to other countries (Photo: VNA) Thepackage is part of Government Resolution 11/NQ-CP issued on January 30 onsocio-economic recovery measures, and Resolution 43/2022/QH15 on fiscal andmonetary policies.
Theprogramme will support business and long-term national development, accordingto the Minister of the Ministry of Planning and Investment (MPI) Nguyen Chi Dung.
Hesaid the economy would encounter many difficulties this year, however,Resolution 11 would create new drivers for the country’s growth in 2022 aftertwo years of interruption.
DeputyMinister of MPI Tran Quoc Phuong said his ministry had asked agencies tourgently carry out support policies for businesses. Ministries and provinceshave to send their monthly reports on the results to the MPI for submission tothe Government.
Phuongsaid many ministries and agencies have prepared support policies forbusinesses. For instance, the Finance Ministry has reduced value-added tax forbusinesses and the State Bank of Vietnam is developing and collecting commentsfor the Draft Decree on interest rate support from the State budget for loansof enterprises, cooperatives and business households.
Theprogramme stipulates that the opening of the economy should adhere to the investmentin healthcare. It also announces a detailed roadmap for reopening tourism,aviation, entertainment, culture and arts, while ensuring pandemic safety.
Underthe programme, a support package worth 6.6 trillion VND will be spent onproviding housing rental subsidies for labourers who are working in industrialparks, export processing zones and key economic regions.
Thosewho return to work will receive support in cash for renting houses in threemonths, and they can access capital for production development with a loanworth up to hundreds of millions of Vietnamese dong.
Underthe programme, VAT reduction has been applied. Accordingly, the Governmentslashed the value-added tax rate from 10 to 8 percent earlier this month.
Drasticimplementation
PrimeMinister Pham Minh Chinh on February 12 signed a dispatch calling for speedyexecution of the socio-economic recovery and development programme as wellacceleration of disbursement.
Accordingly,the Prime Minister requested the effective implementation of the COVID-19 pandemicprevention and control programme for 2022-2023 and work to ensure safeproduction.
Governmentagencies are required to develop specific action programmes and plans to carryout Resolution No 1, with a focus on coordination of monetary, fiscal and otherpolicy tools to maintain macroeconomic stability, curb inflation and ensuresafety of credit institutions.
Ata conference on the Resolutions of the Government and the National Assembly onfiscal policy for economic recovery last month, Deputy Prime Minister Le MinhKhai emphasised that resources should be allocated appropriately to avoidthe "ask - give" approach and slowing down the programme.
PhanDuc Hieu, a standing member of the National Assembly’s Economic Committee, saidministries and agencies must promptly issue regulations to put policy intopractice.
EconomistCan Van Luc said that the recovery programme was feasible and absorptioncapacity would be ensured.
Lucadded that it was essential to improve the coordination of ministries andagencies involved in fiscal and monetary policy. This would neutralise themoney supply, as well as control interest rates and inflation.
Lucsaid Vietnam needed to accept the increasing public debt and budgetdeficit and rising credit growth under control in the 2022-2023 period. Thecountry could increase its budget spending and credit growth at a reasonablelevel of between 13-14 percent per year. From 2024, the Government will startcontrolling these balances in a healthier way.
Hewas upbeat about a positive recovery for the world and Vietnam's economies. Theworld's economic growth is expected to grow between 4.5- 5 percent and Vietnamto be around 6.5-7 percent.
Manyeconomists said that ministries and agencies involved in deploying the programmeneeded to consult the business community to quickly adapt to make the programmemore effective./.
VNA
