31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Industry
Without raising public debt, Vietnam would miss opportunities for growth: Investment Minister
Hai Yen 18:24, 2021/11/11
A large-scale economic recovery plan may be put into motion right in early 2022 upon receiving approval from the National Assembly.

Without raising the threshold of fiscal deficit and public debt, Vietnam could miss the opportunity for growth.

 Minister of Planning and Investment Nguyen Chi Dung at the session. Photo: quochoi.vn

“A lack of economic growth  jeopardizes Vietnam’s possibility of achieving  the five-year or 10-year development goals, which lay the foundation for Vietnam to become a developed country by 2045.”

Minister of Planning and Investment Nguyen Chi Dung made the statement during a discussion session held by the National Assembly (NA) today [November 11], in response to a question from a NA deputy over financial risks related to stimulus packages.

Dung also pointed out the risk of missing out on opportunities offered by Industry 4.0, the demographic dividend, the network of free trade agreements that Vietnam is a part of, and the ongoing shift in global investment activities.

“Economic growth coming from stimulus programs not only boosts socio-economic development but also helps create jobs and expand the economic size,” Dung said, adding it would lower public debt as a result.

Giving a more detailed view on the economic recovery plan under discussion, Dung expected the program to be sufficient in size to aid growth and ensure macroeconomic stability at the same time.

“The program would provide support for both the supply and demand sides of the economy while staying in line with current socio-economic development plans,” he said.

“The main goal for the Government in drafting such a program is to ensure its feasibility, support sectors being hit hard by the pandemic or with high potential for growth, and also within the capability of the economy,” Dung said.

According to Dung, the plan may be put into motion during the 2022-2023 period once the NA approves it. “In case the National Assembly ratifies the package in late 2021, it will be effective right in early next year,” he concluded.

As of present, the size of current support programs of the Government for businesses and people affected by the pandemic was estimated at $10.5 billion, or 2.85% of the GDP. The figure remains modest compared to that of other countries, such as the US (27.9% of the GDP), Japan (44.8%), Thailand (15.6%), Malaysia (8.8%), or China (6.1%).
TAG: Vietnam stimulus package public debt vietnam Covid-19 pandemic vietnam
Other news
12:53, 2022/53/28
Intel continues to scale up its investment in Vietnam
The Vietnamese Prime Minister suggests Intel continue to expand investment and production in Vietnam, in the direction of high technology and clean technology application.
16:33, 2022/33/27
Vietnam’s long-term credit rating upgraded to “BB+”: S&P
S&P forecast Vietnam’s GDP will grow 6.9% in 2022 before settling closer to its long-term trend of growing 6.5%-7% from 2023 onward.
13:09, 2022/09/26
Hanoi hosts Vietnam – Asia DX Summit 2022
The goal of the Vietnamese Government is that the digital economy will account for 20% of GDP by 2025.
16:11, 2022/11/20
Hanoi handicrafts attract international SEA Games 31 guests
The regional sporting event creates opportunities for craft villages to upgrade quality, design, and promote products among international tourists.
11:34, 2022/34/20
Better gender equality towards resilient future for Vietnam’s garment, footwear
Empowering women workers drives and sustains compliance, increases productivity and profitability, improves dialogue, health and education outcomes for workers and their families.
11:24, 2022/24/20
Vietnam’s economic outlook remains bright: AMRO
Vietnam’s positive outlook rides on strong external demand, a recovery in domestic consumption, and healthy investment inflows.