MPI: Vietnam to Focus US$1 Bln Package on Social Housing, Infrastructure Projects

Vietnam will pump cash from the US$1 billion stimulus package into social housing and infrastructure development projects to boost growth, Bui Ha, head of the Department of National Economy was quoted by the Labor newspaper.

 

“The US$1 billion stimulus package will focus on social housing projects for state employees, students and workers at EPZs and IPs, who are the most vulnerable to economic shocks. It will be also used to invest into infrastructure development projects,” Ha said.

 

“The Ministry of Planning and Investment is working on details of the US$1 billion stimulus package, and will submit to the government next week,” Cao Viet Sinh, deputy Minister of Planning and Investment told the Ho Chi Minh City Law newspaper.

 

At a conference co-held by MPI and the state-run Nhan Dan newspaper Dec 10, Vo Tri Thanh, a lead economist-head of the Central Institute of Economics Management’s International Economic Integration proposed that cash should be funneled into investment projects slated for 2009 and 2010 to benefit low income earners.

 

Meanwhile, Cao Sy Kiem, chairman of the Vietnam Small and Medium Enterprise Association also proposed the cash needs to be put into transport infrastructure development, housing projects and be lent to consumers.

 

The cash will be used to support SMEs which are facing difficulties to boost competitiveness of the entire economy, Vu Tien Loc, chairman of VCCI said.

 

There are no exact numbers of SMEs which are having difficulties, Loc said. (Labor, HCMC Law)