Lawmakers open special session and discuss incentives for economic recovery
An employee counts Vietnamese notes at a bank in Hanoi. Photo by VnExpress / Giang Huy
The National Assembly met for an extraordinary session from Tuesday to discuss several critical issues, including a stimulus plan to revive the economy affected by Covid-19.
Fiscal and monetary policies aimed at boosting growth in the coming years will be discussed, said National Assembly office chairman Bui Van Cuong. VnExpress Tuesday.
The National Assembly typically has two sessions a year, in April-May and October-November, but Cuong said waiting until May could impact growth.
Other issues to consider are laws on public and private investment, tendering, electricity and taxation, he said.
The construction of the North-South highway and a particular policy for the development of the city of Can Tho are also on the agenda, he said.
The stimulus is seen as a key factor in boosting growth after the economy grew only 2.58% last year, its second year of weak growth due to the pandemic.
“Without special support programs, without fiscal and monetary stimulus measures, Vietnam will miss opportunities, be left behind and will not achieve its five-year economic development goals,” warned economist Can Van Luc.
Bui Quang Tuan, director of the Vietnamese Institute of Economics, said the economic stimulus program, which will be implemented in 2022 and 2023, could cost 666 trillion VND ($ 29.87 billion), or 8% of 2020 GDP.
The World Bank has advised the government to improve its cash assistance programs to ensure they reach more households, informal workers and people not on social assistance.
Cash support should be provided over several months and not be a one-time affair, he said.