Economic recovery package comes with caution: Deputy PM

Vietnam’s $15 billion economic recovery package, the country's largest ever to beef up post-pandemic economic growth, is being disbursed with great caution to avoid mistakes, Deputy Prime Minister Le Minh Khai said Thursday in response to complaints by some legislators about its long delay.

Some National Assembly delegates on Wednesday raised concerns that the VND350 trillion ($15.09 billion) package, which was approved rapidly in January this year, is providing assistance slowly, causing beneficiaries to wait a long time.

"Some problems have arisen from policies earlier implemented. Therefore, government agencies are being very careful to avoid mistakes in disbursement of such a huge package," Khai told the legislative body's ongoing session. He added that officials, lacking experience in these tasks, need more time.

"Spending on vaccines and medical equipment for pandemic preparedness has suffered no delays, along with funding tax incentives." However, of the VND6,600 billion ($284.5 million) sub-package to assist employers in accommodation services, only VND2 billion has been disbursed.

The sub-package of VND4 trillion for lending rates from banks is progressing slowly as great caution is needed, according to the Deputy PM.

Delays pertaining to infrastructure funding were ascribed to the Law on Public Investment, with Khai saying a project of this type needs about a year and a half to be included in a plan.

He admitted that the whole recovery package is suffering slow progress, but that disbursement would be accelerated in the coming time.

Government data shows that only VND22 trillion ($948.6 million) or 6.2% of the entire package has been disbursed.

Earlier, Vu Luu Mai, vice chairman of the Committee on Finance and Budget, said it would be hard to achieve many state targets in the coming two years given the delays.

"Resources, administrative procedures, and decentralization of power are all in place. Thus, there is no reason for any delay. Are we wasting out opportunity and time? This means we are wasting budget money and resources," she told the legislature.