Vietnam to Spend US$5.7B to Spur Economic Recovery This Year: Ministry
The government of Vietnam is forecast to spend VND100.6 trillion (US$5.7 billion) out of its social security-ensuring package worth VND122 trillion (US$6.9 billion) to spur economic recovery this year, according to the Ministry of Planning and Investment.
The package consists of VND17 trillion (US$1 billion) stimulus package, VND90.8 trillion of government spending, VND28 trillion of tax concessions and VND9.8 trillion social security supports.
The MPI has assessed results of the government’s interest-support lending program, under which VND408 trillion was phased out as of Oct 1, noting that the government will use the rest of the packages to boost the economy next year and in 2011.
The ministry warned the government-support loans and loosened money supply may increase inflationary pressures in coming months.
The government had disbursed half of the VND20 trillion of g-bonds it added for its key projects by end-June, the ministry said.
The ministry also proposed the government should not exempt taxes for local companies in 2010 except for apparel, footwear firms. (Cafef, Vietnam Economic Times)
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