Economic recovery, development programme to last at least two years

Following rounds of discussions, the programme will be submitted to the National Assembly later this year. Deputy Minister of Planning and Investment Tran Quoc Phuong said the programme suggests five groups of measures covering health care, social welfare; support for businesses, cooperatives and households; public investment stimulation and administrative reform, based on international experience and lessons, especially those during 2009-2011 economic slowdown.

Phuong said if successful, Vietnam could regain a growth of nearly 6.5 percent in 2022 and higher in 2023.

According to him, fiscal and monetary tools will be mostly used in combination with other tools such as non-State and corporate funding, the involvement of the private sector in projects under public-private partnership model.

Experts said the stimulus package needs to be equivalent to 6 percent of the gross domestic product, but inflation needs to be under control. Dr. Nguyen Minh Chuong, chief economist at the Asian Development Bank (ADB), suggested Vietnam accept higher public debts and expenditure deficit for a short term to support the economy, but measures should be in place to establish fiscal discipline for a mid and long term while outlining and classifying goals appropriate for each short, mid and long term.