Vietnam seeks $15.3 billion stimulus package to prop up virus-hit economy

[January 04, 2022]  HANOI (Reuters) - Vietnam plans to spend 347 trillion dong ($15.25 billion) for the 2022-23 period to cushion the economic blow from the COVID-19 pandemic and assist businesses hurt by tough curbs, the country's planning ministry said on Tuesday.

Labourers wear protective masks as they work at a private Ngoc Nu factory which makes blankets, pillows and mattresses for the local market after the government eased nationwide lockdown following the coronavirus disease (COVID-19) outbreak, in Hanoi, Vietnam June 1, 2020. REUTERS/Kham

The latest stimulus package, which is well below the proposal of 800 trillion dong submitted in November, includes measures to reduce bank loan interest rates by about 1 percentage point and delay loan payments for businesses.

According to the plan, Vietnam's central bank, which has plan to sell $3 billion of government bonds domestically, should stand ready to intervene in the market and stabilise foreign exchange rates if necessary.

Vietnam's economy grew 2.58% in 2021, slipping from a 2.91% expansion the year before, official data showed. The government is targeting GDP growth https://www.reuters.com/
markets/asia/vietnams-2021-gdp-growth-slows-exports-offer-support-2021-12-29 of 6.0%-6.5% for 2022.

The plan also includes 64 trillion dong tax reduction and 110 trillion dong in assistance for businesses.

($1 = 22,752.0000 dong)



(Editing by Sanjeev Miglani)

 

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