Half of VND350 Trillion Support Package to Be Disbursed in 2022

According to Vietnam's Ministry of Planning and Investment, many ministries and sectors have started implementing policies in the economic support package of VND350,000 trillion.

Resolution 11/NQ-CP on the Socio-economic Development and Recovery Program and the implementation of Resolution 43/2022/QH15 of the National Assembly of Vietnam on fiscal and monetary policies were issued by the Government right in the first month of 2022.

According to Resolution 11 of the Government, the groups of tasks and solutions for economic recovery will include: opening the economy in association with investment in improving health capacity, pandemic prevention and control; continuing to guide and implement the roadmap for reopening tourism, air transport, entertainment services, culture and art in association with ensuring safety against the pandemic.

Policy implementation in this program is one of the key tasks assigned by the Government. Right from the beginning of the year, ministries and sectors have started formulating policies of the Socio-Economic Development and Recovery Program.

According to the leader of the Ministry of Planning and Investment, it is expected that in 2022, about 50% of the economic support package of VND350,000 trillion will be disbursed.

In fact, the Ministry of Finance has quickly implemented the policies under the support package. Right from the beginning of the year, the Ministry has implemented a program to reduce VAT. Specifically, groups of goods and services that are applying the value-added tax rate of 10% are entitled to a reduction of 2% of the tax rate to 8%. In addition, the State Bank is drafting regulations on the level of compensation and support for interest rates. The Ministry of Transport, the Ministry of Health, the Ministry of Agriculture and Rural Development, and localities are waiting for guidelines drafted by the Ministry of Planning and Investment on public investment.

For business support policies, the Ministry of Planning and Investment will coordinate with the State Bank to identify enterprises belonging to certain industry groups for support. In which, businesses in the fields of information technology and digital technology are in the group of businesses supported to develop and recover from the support package.

For policies to ensure social security and job support, the economic support package is used to support 3 months' rent for employees who have an employment relationship, are renting, and staying in lodges, working in industrial parks, export processing zones and key economic areas. In addition, the support level for employees returning to the labor market is VND1 million/month and employees working in enterprises is VND500,000 /month. The implementation time is in the first 6 months of 2022.

Along with that, the Government has issued the policy of mobilizing capital for important and urgent projects with large spillover effects, capable of quick disbursement and immediate absorption into the economy, suitable with the master plan, using capital effectively, ensuring the ability to balance capital to complete the project in the period of 2022-2025. For new projects that are important to socio-economic development, the Government proposes to prioritize support for site clearance so that the projects can be completed soon.

By Binh Hanh, Vietnam Business Forum