Sat. Jan 22nd, 2022

The government says it is striving for ‘sustainable’ growth that ensures macroeconomic stability while controlling inflation.

By Bloomberg

Vietnam’s parliament has approved a stimulus package worth about 347 trillion dong ($ 15.3 billion) to revive an economy plagued by Covid-19 and severe restrictions, focusing on assisting businesses affected by the virus is, workers and increasing infrastructure spending.

The National Assembly voted in favor of a plan that was significantly reduced due to concerns that it would fuel inflation.

Vuong Dinh Hue, chairman of the National Assembly, said at a forum in Hanoi last month that the government was looking for “sustainable” growth that would ensure macroeconomic stability while controlling inflation, according to a post on the government’s website. Policymakers weighed 800 trillion dong in stimulus measures in November.

Vietnamese officials seek to repair an economy damaged by tough anti-virus closures, which have led to factory closures that have crippled global supply chains.

The stimulus package includes about 170 billion dong in infrastructure spending for 2022-’23.

It also has measures to lower bank lending rates by about 1 percentage point and delay loan payments to help businesses. The central bank will intervene in the money market by selling dollars to stabilize foreign exchange rates when needed.

Parliament also approved an increase in the state budget deficit by a total of 240 trillion dong for the 2022 and 2023.

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