Vietnam seeks $15.3 bln stimulus package to prop up virus-hit economy
Labourers wear protective masks as they work at a private Ngoc Nu factory which makes blankets, pillows and mattresses for the local market in Hanoi, Vietnam on Jun 1, 2020. (Photo: 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 of 6.0%-6.5% for 2022.
The plan also includes 64 trillion dong tax reduction and 110 trillion dong in assistance for businesses.