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Vietnam seeks US$15.3 billion stimulus package to prop up pandemic-hit economy

Vietnam seeks US$15.3 billion stimulus package to prop up pandemic-hit economy

Labourers wear protective masks as they work at a private Ngoc Nu factory which makes blankets, pillows and mattresses for the local market in Hanoi, Vietnam on Jun 1, 2020. (Photo: REUTERS/Kham)

HANOI: Vietnam plans to spend 347 trillion dong (US$15.25 billion) for the 2022-2023 period to cushion the economic blow from the COVID-19 pandemic and assist businesses hurt by tough curbs, the country's planning ministry said on Tuesday (Jan 4).

The latest stimulus package, which is well below the proposal of 800 trillion dong submitted in November, includes measures to reduce bank loan interest rates by about 1 percentage point and delay loan payments for businesses.

According to the plan, Vietnam's central bank, which has plan to sell US$3 billion of government bonds domestically, should stand ready to intervene in the market and stabilise foreign exchange rates if necessary.

Vietnam's economy grew 2.58 per cent in 2021, slipping from a 2.91 per cent expansion the year before, official data showed. The government is targeting GDP growth of 6.0per cent-6.5per cent for 2022.

The plan also includes 64 trillion dong tax reduction and 110 trillion dong in assistance for businesses.

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Source: Reuters/ic

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