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Vietnam speeds up disbursement of economic recovery package

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Vietnam will soon disburse at least 50 percent of the VND350 trillion economic recovery package, the largest in its history, aiming to reboot the country’s economy after a long period of social and mobility restrictions due to the COVID-19 pandemic.

Vietnam speeds up disbursement of economic recovery package hinh anh 1

Workers make footwear products in Binh Tien Rubber Cooperative in Can Tho city to serve the domestic market and export to other countries (Photo: VNA)

The $15.42 billion package is part of Government Resolution 11/NQ-CP issued on January 30 on socio-economic recovery measures, and Resolution 43/2022/QH15 on fiscal and monetary policies.

The programme will support business and long-term national development, according to the Minister of the Ministry of Planning and Investment (MPI) Nguyen Chi Dung.

He said the economy would encounter many difficulties this year, however, Resolution 11 would create new drivers for the country’s growth in 2022 after two years of interruption.

Deputy Minister of MPI Tran Quoc Phuong said his ministry had asked agencies to urgently carry out support policies for businesses. Ministries and provinces have to send their monthly reports on the results to the MPI for submission to the Government.

Phuong said many ministries and agencies have prepared support policies for businesses. For instance, the Finance Ministry has reduced value-added tax for businesses and the State Bank of Vietnam is developing and collecting comments for the Draft Decree on interest rate support from the State budget for loans of enterprises, cooperatives and business households.

The programme stipulates that the opening of the economy should adhere to the investment in healthcare. It also announces a detailed roadmap for reopening tourism, aviation, entertainment, culture and arts, while ensuring pandemic safety.

Under the programme, a support package worth 6.6 trillion VND will be spent on providing housing rental subsidies for labourers who are working in industrial parks, export processing zones and key economic regions.

Those who return to work will receive support in cash for renting houses in three months, and they can access capital for production development with a loan worth up to hundreds of millions of Vietnamese dong.

Under the programme, VAT reduction has been applied. Accordingly, the Government slashed the value-added tax rate from 10 to 8 percent earlier this month.

Drastic implementation

Prime Minister Pham Minh Chinh on February 12 signed a dispatch calling for speedy execution of the socio-economic recovery and development programme as well acceleration of disbursement.

Accordingly, the Prime Minister requested the effective implementation of the COVID-19 pandemic prevention and control programme for 2022-2023 and work to ensure safe production.

Government agencies are required to develop specific action programmes and plans to carry out Resolution No 1, with a focus on coordination of monetary, fiscal and other policy tools to maintain macroeconomic stability, curb inflation and ensure safety of credit institutions.

At a conference on the Resolutions of the Government and the National Assembly on fiscal policy for economic recovery last month, Deputy Prime Minister Le Minh Khai emphasised that resources should be allocated appropriately to avoid the “ask – give” approach and slowing down the programme.

Phan Duc Hieu, a standing member of the National Assembly’s Economic Committee, said ministries and agencies must promptly issue regulations to put policy into practice.

Economist Can Van Luc said that the recovery programme was feasible and absorption capacity would be ensured.

Luc added that it was essential to improve the coordination of ministries and agencies involved in fiscal and monetary policy. This would neutralise the money supply, as well as control interest rates and inflation.

Luc said Vietnam needed to accept the increasing public debt and budget deficit and rising credit growth under control in the 2022-2023 period. The country could increase its budget spending and credit growth at a reasonable level of between 13-14 percent per year. From 2024, the Government will start controlling these balances in a healthier way.

He was upbeat about a positive recovery for the world and Vietnam’s economies. The world’s economic growth is expected to grow between 4.5- 5 percent and Vietnam to be around 6.5-7 percent.

Many economists said that ministries and agencies involved in deploying the programme needed to consult the business community to quickly adapt to make the programme more effective.

Source: VNA

Source: https://vietnamnet.vn/en/business/vietnam-speeds-up-disbursement-of-economic-recovery-package-820308.html

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Vietnam targets 7% GDP growth this year: minister

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HANOI — Vietnam is aiming for economic growth of 7% this year, the country’s planning and investment minister said on Monday, higher than an official target of 6.0%-6.5% set previously.

To achieve this, year-on-year economic growth in the third quarter needs to be 9.0% and in the fourth quarter 6.3%, minister Nguyen Chi Dung also said during a government meeting.

Dung said Vietnam’s budget was in surplus, giving scope for fiscal policy to be used to support businesses and residents.

“Credit institutions will need to further cut their lending interest rates to reduce input cost pressure for businesses and for the economy,” he said.

Vietnam, a regional manufacturing hub, started lifting its coronavirus curbs late last year, allowing factories to resume full operations.

The economy is recovering after growing only 2.58% last year, the slowest pace in decades.

The Southeast Asian country reported GDP growth of 7.72% in the second quarter, backed by strong export growth, but warned of upward inflation pressure for the rest of the year. 

Source: https://tuoitrenews.vn/news/business/20220704/vietnam-targets-7-gdp-growth-this-year-minister/67932.html

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Vietnam spends $40bln importing computers, electronic components since early 2022

Computers and electronic components continue to be the lead group of imported goods, with a turnover of approximately $40 billion, according to the latest data from General Department of Customs.

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From the beginning of the year to June 15, the country spent $39.62 billion importing computers, electronic products, and components, an increase of 29.3% from a year ago.

Computers, electronic products, and components remain the largest import item of Vietnam, accounting for 23.36% of the total import turnover of the economy.

The second-largest imported goods were machinery, equipment, tools, and spare parts with $20.43 billion. The largest import market of this product group was Asia.

Importing computers, electronic products, and components from South Korea was $10.53 billion, a sharp increase of 44% from an earlier year. China was after South Korea with $10.36 billion, up 29.2%. Computer import from Taiwan was recorded at $4.98 billion, up 35.5%; from Japan with $2.89 billion, up 39.8%.

From the beginning of the year to the end of June 15, the total import turnover reached $169.58 billion, an increase of 16.3% (equivalent to an increase of $23 0.8 billion) from last year.

In addition to computers, and electronic products, commodity groups with high turnover such as petroleum increased by $2.53 billion, an increase of 128.4%. Coal of all kinds increased by $2.19 billion, equivalent to 135.7% growth.

Source: https://e.nhipcaudautu.vn/economy/vietnam-spends-40bln-importing-computers-electronic-components-since-early-2022-3346496/

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Yeah1 to buy TV firm amid restructuring

Online entertainment company Yeah1 plans to buy a 51 percent stake in TV and radio company STV amid a major restructuring endeavor.

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The deal is set to be completed this quarter. STV, established in 2008, owns lifestyle TV channel StyleTV, stock and finance channel InfoTV and radio channel Joy FM.

The deal was announced after Yeah1 founder and chairman Nguyen Anh Nhuong Tong sold his entire 12.89 percent stake on June 1 after 15 years of leading the company from an online news website to the first media company to be listed on the Ho Chi Minh Stock Exchange.

Several other major shareholders have also been pulling out since February, including DFJ VinaCapital Venture Investment.

Yeah1 has postponed its annual general meeting twice this year saying more time was needed to prepare important documents.

It reported post-tax profits of nearly VND28 billion last year after two years of losses.

Its contract with YouTube was terminated in March 2020 due to a violation of policies, and what began as an operational error has “turned into a real crisis for the company,” Tong once said.

Yeah1 targets revenues of VND588 billion this year, down 45 percent from 2021 and the lowest since 2017.

It plans to issue 78.6 million new shares to increase its capital.

Source: VnExpress

Source: https://e.nhipcaudautu.vn/companies/yeah1-to-buy-tv-firm-amid-restructuring-3346497/

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