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As Việt Nam slowly lifts COVID-19 restrictions, the economic recovery is only just beginning. With the third-quarter GDP in deep decline, the government aims to launch stimulus packages to boost recovery.
As Việt Nam slowly lifts COVID-19 restrictions, the economic recovery is only just beginning. With third-quarter GDP in deep decline, the government aims to launch stimulus packages to boost recovery.
The National Assembly discussed recovery programmes and financial sources to fund those programmes at a meeting on October 22.
Trịnh Xuân An, a member of the Committee for National Defence and Security, said that untapped financial sources were still enormous, despite the State budget having spent a lot on the fight against COVID-19. If the equitisation of state-owned enterprises could be carried out on schedule and tax arrears resolved, more money would be available for the prevention of COVID-19 and economic recovery.
Some members argued that the Government should conduct well-coordinated monetary and fiscal policies to create additional money to turn the economy for the better. This opinion was also expressed in the 2021-2022 budget report by the Committee for Financial and Budgetary Affairs.
In the report, the finance and budget committee said economic recovery and creating financial sources to ensure social security are matters of great urgency.
In response, Vương Đình Huệ, Chairman of National Assembly, insisted that socio-economic recovery programmes were currently under development by the Government and National Assembly. The implementation of those programmes would require smooth coordination between monetary and fiscal policies, and careful allocation of financial sources as well. As both aggregate demand and supply were weak, quick recovery seemed difficult to achieve.
Experts suggest the monetary and fiscal packages need to be on large scale, aimed at stimulating both aggregate demand and supply. They expect those packages to be spread out over the next two years (2022-2023). Before any new packages are set in motion, the Government should speed up public investment disbursement and ensure existing packages work out well, experts say.
So far, the total of supportive packages has reached over VNĐ100 trillion and proved to be helpful.
On October 20, the Committee for Financial and Budgetary Affairs agreed on a proposal to allocate budget funds reserved for wage reforms to anti-pandemic efforts. — VNS