Minister Ninh: Vietnam Economy Needs More Stimulus Package
Minister of Finance Vu Van Ninh told state media on the sideline of National Assembly’s biannual session Tuesday the government should continue stimulus efforts to achieve a 6.5% economic growth next year.
Minister Ninh noted Vietnam’s economy, which bottomed out in February, is well on recovery course and it should be aided with more low-cost loans.
The size of the package could be at lower levels, Minister Ninh said, adding the Ministry of Finance has proposed to stop tax exemption and cuts while maintaining to guarantee loans for businesses to buy machinery, equipment and serve effective production.
Ninh also requested the government stop the first stimulus package worth VND17 trillion as scheduled for the end of the year. Under the package, VND410.6 trillion (US$23 billion) had been phased out for the domestic economy as of Oct 15.
State budget revenues for this year are estimated at VND390 trillion, representing 100.2% of the target and state budget deficit is expected to be 5% of the country’s GDP this year, Ninh said.
The government has set the 6.5% growth for 2010, inflation at 7% and state budget deficit to account for 6.5% of GDP, Prime Minister Nguyen Tan Dung said in a statement read before the assembly Tuesday. (Labor, Vnexpress)
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