Vietnam sees one-sixth of stimulus package spent in 8 months

By Pham Thao
Tue, September 6, 2022 | 4:43 pm GTM+7

About VND55 trillion ($2.34 billion) from Vietnam’s post-pandemic stimulus package of VND350 trillion ($15 billion) was disbursed over eight months, the country’s planning ministry said Tuesday.

The amount was counted until September 2, about one-sixth of the total, Minister of Planning and Investment Nguyen Chi Dung told a government meeting in Hanoi.

Minister of Planning and Investment Nguyen Chi Dung addresses a government meeting in Hanoi on September 6, 2022. Photo courtesy of the government’s portal.

Minister of Planning and Investment Nguyen Chi Dung addresses a government meeting in Hanoi on September 6, 2022. Photo courtesy of the government’s portal.

This spending included more than VND10,000 billion ($425 million) as preferential loans from the Social Policy Bank, with VND3,045 billion (129.4 million) having reached some 4.54 million laborers nationwide as housing rental assistance.

The minister said the accommodation assistance is lower than expected due to complicated procedures and differences between booking and real figures, while in some localities, leaders have lacked determination.

Dung added the package’s initiative that reduces bank loan interest rates by about two percentage points has disbursed VND13.5 billion (over $574,000) to businesses. Tax reduction and longer tax and fee deadlines were also part of the eight-month disbursement.

The National Assembly approved the stimulus package this January for the Government to carry out the country’s Program for Recovery and Development. At a legislative body sitting this June, many legislators showed concern that the package was disbursed slowly.

Deputy Prime Minister Le Minh Khai then explained that it was necessary to proceed “with caution to avoid mistakes” as it is a huge package. The government then set up a steering committee led by him in early July to help speed up work.

Vietnam’s economy grew 2.58% in 2021 due to the Covid-19 pandemic, slipping from a 2.91% expansion in 2020, the first pandemic year. The World Bank this August revised up the country’s GDP prediction to 7.5% for this year, much higher than the forecast of 5.8% in early June as “economic activity continues to normalize.” In April, the global bank put its projection at 5.3%, and 4% in the worst-case scenario.

The IMF said in July that Vietnam’s growth is expected to reach 6% in 2022 as activity normalization continues and the Program for Recovery and Development is implemented.

Comments (0)
  • Read More
Vingroup gets green light for second battery factory

Vingroup gets green light for second battery factory

The nation’s largest private conglomerate, Vingroup, has received in-principle approval to build its second auto battery plant in the same economic zone as the first in central Vietnam.

Industries - Sat, September 24, 2022 | 11:59 am GTM+7

Q4 shopping demand to make goods storage space busier

Q4 shopping demand to make goods storage space busier

Stiffer competition among online shopping sites in Vietnam during the last three months of the year will drive up inner-city warehouses’ occupancy rate, according to Cushman & Wakefield.

Real Estate - Sat, September 24, 2022 | 10:46 am GTM+7

EVN responsible for price talks with renewables projects missing FiT deadline: regulators

EVN responsible for price talks with renewables projects missing FiT deadline: regulators

Vietnam Electricity (EVN) is responsible for negotiating prices and outputs with wind and solar power developers that have failed to meet the country’s feed-in-tariff deadline, says the Electricity Regulatory Authority.

Energy - Sat, September 24, 2022 | 9:05 am GTM+7

Vietnam requires $13-bln seaport infrastructure investment by 2030

Vietnam requires $13-bln seaport infrastructure investment by 2030

Vietnam needs to invest $13 billion in seaport infrastructure by 2030 to improve the handling of container goods from the current 24 million twenty-foot equivalent units (TEU) a year to 30-40 million.

Infrastructure - Fri, September 23, 2022 | 11:07 pm GTM+7

France aids Vietnam utility’s energy transition with EUR1 million grant

France aids Vietnam utility’s energy transition with EUR1 million grant

The French Development Agency (AFD) and the Electricite de France (EDF) have signed an agreement on financing Vietnam Electricity (EVN) with EUR1 million ($982,000) to facilitate the latter’s energy transition.

Energy - Fri, September 23, 2022 | 8:29 pm GTM+7

Lam Dong approves 2 wind power projects worth $186 mln

Lam Dong approves 2 wind power projects worth $186 mln

The Central Highlands province of Lam Dong has approved two wind power projects with a total capacity of 40 megawatts and investment of VND4,398 billion ($185.5 million).

Energy - Fri, September 23, 2022 | 4:55 pm GTM+7

CloudEats to continue SEA expansions with new investment capital

CloudEats to continue SEA expansions with new investment capital

CloudEats, a pioneering cloud kitchen company with a presence in Vietnam and the Philippines, has raised a $7 million Series A extension led by Nordstar Capital to reach more Southeast Asian markets.

Industries - Fri, September 23, 2022 | 4:48 pm GTM+7

Spanish developer to operate wind power projects in SE Asia, including Vietnam

Spanish developer to operate wind power projects in SE Asia, including Vietnam

Spanish renewables developer Acciona Energia has entered into a strategic partnership with Asia’s The Blue Circle to build and operate the latter’s pipeline of projects in Vietnam and Southeast Asia.

Energy - Fri, September 23, 2022 | 4:24 pm GTM+7

HCMC needs infrastructure development breakthroughs: Party leader

HCMC needs infrastructure development breakthroughs: Party leader

Party chief Nguyen Phu Trong on Friday asked Ho Chi Minh City to prioritize construction and create stronger advances in growing the southern economic hub’s infrastructure system.

Politics - Fri, September 23, 2022 | 3:40 pm GTM+7

Hanoi attracts $992 mln in nine-month FDI

Hanoi attracts $992 mln in nine-month FDI

Hanoi attracted $992.4 million in foreign direct investment in the year to September 20, up 15% year-on-year.

Investing - Fri, September 23, 2022 | 3:19 pm GTM+7

Frozen pangasius export turnover to U.S. up 87%

Frozen pangasius export turnover to U.S. up 87%

Vietnam’s tra fish (pangasius) exports to the U.S. fetched $421 million in the first eight months of this year, a year-on-year increase of 87%, according to Vietnam Customs.

Economy - Fri, September 23, 2022 | 1:24 pm GTM+7

Made-in-Vietnam Apple products to rise significantly by 2025: JP Morgan

Made-in-Vietnam Apple products to rise significantly by 2025: JP Morgan

Vietnam will make 65% of tech giant Apple’s AirPods earphones, 5% of MacBook laptops, and 20% of iPad tablets and Apple Watch smart watches by 2025, says JP Morgan.

Companies - Fri, September 23, 2022 | 1:09 pm GTM+7

Vietnam’s global integration drives robust logistics growth

Vietnam’s global integration drives robust logistics growth

Vietnam’s efforts to deeply penetrate the global value chain and success in luring supply chain businesses are driving robust logistics industry growth and making it more attractive.

Industries - Fri, September 23, 2022 | 11:42 am GTM+7

Mercedez-Benz to assemble AMG C43 sports cars in Vietnam

Mercedez-Benz to assemble AMG C43 sports cars in Vietnam

Mercedes-Benz Vietnam CEO Bradley Kelly says the company will assemble, for the first time, the famous sports sedan Mercedes-AMG C43 in the country next year.

Companies - Fri, September 23, 2022 | 8:58 am GTM+7

Vietnam central bank raises deposit rate ceiling

Vietnam central bank raises deposit rate ceiling

The State Bank of Vietnam decided Thursday to raise the deposit rate ceiling, refinance rate and rediscount rate for the first time in two years.

Banking - Thu, September 22, 2022 | 10:23 pm GTM+7

Infrastructure developer Idico spends $4.2 mln on electricity production firm

Infrastructure developer Idico spends $4.2 mln on electricity production firm

Idico Corporation - JSC, Vietnam's leading industrial park real estate company, has spent VND100 billion ($4.22 million) on setting up an electricity production company.

Companies - Thu, September 22, 2022 | 8:56 pm GTM+7