31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Trade - Service
Vietnamese parliament ratifies US$15.4-billion recovery package in 2022-2023
Hai Yen 12:01, 2022/01/12
The recovery program is intended to ensure Vietnam’s average GDP growth at 6.5-7% during the 2021-2025 period.

Vietnam’s National Assembly on January 11 approved a resolution on a socio-economic recovery program worth nearly VND350 trillion (US$15.4 billion).

 Overview of the NA session. Source: quochoi.vn

The program, scheduled to take place during the 2022-2023 period, would include an economic reopening initiative along with improvements in preventive healthcare capabilities worth VND60 trillion ($2.64 billion); social welfare, and job creation support (VND53.15 trillion or $2.34 billion); businesses, cooperative and households recovery support (VND110 trillion or $4.84 billion); infrastructure development  (VND113.85 trillion or $5 billion); administrative reform and improvements of the business environment.

At the discussion session, NA Chairman Vuong Dinh Hue said the recovery program is intended to ensure Vietnam’s average GDP growth at 6.5-7% during the 2021-2025 period, inflation rate staying below 4%, and stable macro fundamentals.

Meanwhile, fiscal support under the program would include a 2% cut in value-added tax (VAT) in 2022 for goods and services subject to 10% VAT, except for those in fields of telecommunications, insurance, banking, and mining.

Hue expected the monetary policy to be managed in a flexible manner with a view to further lowering lending rates by a minimum of 0.5-1 percentage points within two years; restructuring debt payment schedules and freezing, waiving interest rates for customers affected by the pandemic.

 NA deputies votes for the ratification of the resolution. 

To finance the recovery program, the NA has allowed a higher state budget deficit during 2022-2023 by an average of 1-1.2 % of the GDP, or a maximum of VND240 trillion ($10.6 billion).

In this case, Vietnam’s state budget deficit in 2022 is expected to increase by 1.1% of the GDP, or VND102.8 trillion ($4.5 billion) higher than the previous estimate.

The NA called for the Government to continue keeping a stable macro-economic situation and ensuring major balances of the economy while taking measures to prevent tax losses or transfer pricing to add more resources to the economic recovery efforts.

“The issuance of the Government bonds should be in close association with the management of the monetary and fiscal policies,” said the resolution.

Vietnam is set to keep an average GDP growth of 6.5-7% in the five-year period, or a GDP per capita of $4,700-5,000 by 2025.

Manufacturing and processing, the key drivers for growth, is set to make up 25% of the GDP, and the digital economy would represent 20%.

The plan also targets an average productivity growth of 6.5% per year and a budget deficit of 3.7% of the GDP for the five-year period.

TAG: Vietnam National Assembly Vietnam parliament recovery vietnam 2022
Other news
17:30, 2022/30/23
High inflationary pressure put GDP 6.5% growth target at risk: Gov’t
The Government is committed to taking timely measures to ensure macroeconomic stability.
13:12, 2022/12/23
Public investment identified as urgent task for economic recovery: Gov’t
The challenge would be huge for localities and Government agencies to fully disburse the public investment funds for this year.
08:39, 2022/39/21
USAID helps ease congestion at Vietnam busiest container port
Cat Lai Terminal handles roughly 50% of Vietnam’s total container volume annually.
16:03, 2022/03/18
HoSE releases information on proprietary trading
The stock authorities would provide information on the proprietary trading of securities companies for each ticker.
14:11, 2022/11/18
Microsoft seeks greater cooperation with Vietnam in digitalization
The US IT company expects to help Vietnam build up digital skills for both private and state sectors, as well as develop data science.
17:08, 2022/08/16
Vietnam targets to have 10 SOEs with over US$5-billion market cap by 2025
All state firms should further shift their investment activities towards using green technology with lower carbon emission levels.