At the regular government meeting in February 2020, held on the afternoon of March 3rd, the Prime Minister announced that two support packages – credit and fiscal support – would be launched to assist businesses affected by the Covid-19 pandemic.
Providing credit support of 250.000 trillion VND and fiscal support of 30.000 trillion VND for those affected by the Covid-19 pandemic.
Prime Minister Nguyen Xuan Phuc announced that on March 4th, a Prime Minister's Directive will be issued outlining urgent measures to promote production and business, prevent and control Covid-19, and ensure social security.
The Prime Minister emphasized, "The general principle is to assign specific tasks and solutions, with clear addresses, for immediate implementation, avoiding vague or roundabout statements."
In particular, focus on monetary policy, fiscal policy, trade, investment, administrative procedure reform, and areas heavily impacted by the pandemic; prioritizing tourism, trade, services, aviation, and import-export, as these sectors have been severely affected. Simultaneously, support should be provided to those harmed by Covid-19, and efforts should be made to promote economic recovery.
First, a 250.000 trillion VND low-interest credit support package and a 30.000 trillion VND fiscal support package, including financial deferrals and extensions, will be launched to provide assistance. This solution is intended to be effective immediately to support businesses and individuals.
The Prime Minister clearly assigned tasks to ministries and agencies to implement the solutions.
In the current context, the Government will continue to promote solutions to stabilize the macroeconomy. Simultaneously, the Prime Minister requested ministries and agencies to develop scenarios and countermeasures regarding Covid-19 and the global situation to avoid being caught off guard.
Regarding monetary policy
The Prime Minister requested the State Bank of Vietnam to stabilize interest rates, exchange rates, the foreign exchange market, and the gold market, continue to strengthen foreign exchange reserves, and provide sufficient and timely credit for production and business. Commercial banks need to share the difficulties of the people and businesses, and reduce interest rates so that businesses can recover production.
Regarding fiscal policy
The Prime Minister instructed the Ministry of Finance: “Regarding state budget finances, the Ministry of Finance, together with other ministries and agencies, should urgently review and propose exemptions, reductions, deferrals, and postponements of tax, fee, and levy payments, including deferrals of corporate income tax, land rent, and social insurance payments. Special attention should be paid to industries and businesses affected by Covid-19.”
Regarding investment activities
Given the slow pace of public investment disbursement, the Prime Minister requested the Ministry of Planning and Investment, the Ministry of Finance, and the Government Office to promptly prepare the content for a national conference to review responsibilities on this issue in the first quarter of 2020. With approximately 600.000 billion VND of public investment capital needing to be disbursed this year, this will be an important channel contributing to growth. In addition, it is necessary to continue boosting social investment, which accounted for 34% of GDP last year, and this figure must be higher this year.
For manufacturing operations
The Prime Minister requested the Ministry of Agriculture and Rural Development to promptly submit a comprehensive plan to promote agricultural exports and reduce agricultural production costs.
In addition to appropriate support policies regarding taxes and credit, the transportation, culture, sports, and tourism sectors should review and implement specific measures to support, encourage, and reduce costs, including transportation costs…
The Ministry of Labour, Invalids and Social Affairs is reviewing and assessing the situation and labor needs of businesses to develop solutions to support and supply labor, overcoming the temporary labor shortage caused by the COVID-19 pandemic. The issuance of new work permits for foreign workers from areas affected by the pandemic will be temporarily suspended during the period when Vietnam declares a COVID-19 epidemic.
The Prime Minister also requested that information and communication work contribute to creating social consensus, building trust among the people, and publicizing exemplary individuals in labor, production, and the fight against the COVID-19 pandemic. Relevant agencies must strictly handle acts of disseminating false information.
