(CPV)- "Sustaining economic growth during the remaining of 2009 will require a stronger reliance on domestic demand. In line with policy responses elsewhere, the budget plan that was adopted by the National Assembly at the end of 2008, in the wake of "the five groups of measures", already entailed a subtantial increase in the overall budget deficit. But other stimulus policies were adopted in early 2009 and yet others are being considered for approval at present," according to an update on Vietnam's recent economic developments that was prepared by the World Bank. Based on international criteria, the planned deficit for 2009 reached 8.3 percent of GDP, against 4.5 percent in 2008. These figures are not strictly comparable to those discussed in Vietnam's public debate, for several reasons,. First, under international criteria, "off budget" items are to be included in the estimation of the deficit. In Vietnam's case, some of those items are "off budget" only in name, as they are subject … [Read more...] about The stimulus package – Can it be afford and how?
2008 stimulus package
He released that in the current difficult situation, Vietnam's economy still has growth, in spite of only 3.9% in the first half of 2009, which is a positive sign. The sectors which continue to develop in Vietnam include construction, transportation, communications, whole sale and retail markets. This is suitable with our viewpoint because the stimulus package of the government of Vietnam has had satisfactory impact on the economy. This year is a challenging year for the domestic and regional economy but we still keep the viewpoint of prospect of medium-term development for the Vietnamese market. According to a forecast of the United Nations (UN), the population of Vietnam will increase from 85 million to 110 million in 2035 and two thirds of that number will play an important role in economic development. This will be profuse human resources for domestic production and consumption sectors. Looking at the real growth rates in Asian countries, purchasing power of Vietnam will double … [Read more...] about Stimulus package has positive effects on Vietnam’s economy
Second Stimulus Package And Microeconomic Impacts By Ngoc Lan The Ministry of Planning and Investment (MPI) has offered the Government its views on the priorities of the second stimulus package, given the impacts of the first one The four-percentage-point interest subsidy is an oft-cited component of the first stimulus package. “However, in reality, only about 20% of the enterprises have been able to access this subsidy. This has triggered economic inequalities and made the package less meaningful,” said the National Assembly’s Economic Commission in its report regarding the implementation of the lawmaking body’s resolution on socioeconomic development in 2009 and the goals for 2010. This is, arguably, a drawback of the first stimulus package. Moreover, the interest rate subsidy scheme is only one of the four policies unveiled by the Government. The VND17-trillion interest subsidy pales in comparison with the State’s development investment, worth VND90.8 … [Read more...] about Second Stimulus Package And Microeconomic Impacts
The government has agreed to use most of a US$1 billion economic stimulus package to offer interest rate subsidies for local businesses that have been hit hard by the global financial downturn. The government said it would give small and medium enterprises, such as this pottery exporting company in Bac Ninh Province, an interest rate subsidy of 4 percent in up to 12 months. … [Read more...] about Stimulus package goes to small, medium businesses
The national economy is forecasted to face uncertainties in 2009, and this situation requires active participation of the State. Particularly, the USD1 billion economic stimulus package (equivalent to VND17,000 billion) approved by the Government to help enterprises is being urgently deployed. However, the enterprises have paid much attention to how to use this package effectively. Economic slowdown: challenges follow upon opportunities Discussing with enterprises to overcome obstacles … [Read more...] about Economic stimulus package deployed by Government still make enterprises worry