Hoang Thi Lan, a factory worker in Hanoi, is searching for a kumquat plant to decorate the New Year celebrations.
COVID-19 has caused her to spend even less than usual. She has had to reduce her spending in recent months. Festivities weren’t a priority.
The National Assembly of Vietnam, Vietnam’s highest legislature, approved a package of nearly 350 trillion Vietnamese Dong (about 15 Billion U.S. Dollars) last Tuesday to help those affected by the pandemic.
Vuong Dinh Hue, the top legislator, announced the approval.
The stimulus will be focused on employment, health care, and fiscal policies for businesses. It will also increase public investment.
The pandemic cost the economy 37 billion dollars. Instead of growing 7 percent per annum in the last two years, as initially expected, it was expected to lose 37 billion dollars. The country in Southeast Asia posted a modest gross domestic product increase of just 2.6%, which was the lowest rate in a decade.
Vo Dai Luoc, a former head of the Hanoi-based Institute of World Economics and Politics, under the Vietnam Academy of Social Sciences, told Xinhua that the policies had “impacts on consumption, labor, and production” and would solve people’s short-term social security needs and support the economy.
Consumers and businesses have welcomed a reduction in the value-added tax from 10 percent to 8% as one of the most direct actions.
For workers to afford their housing, the package contains 6.6 trillion wongs (about 290.4 million dollars). Lan, a factory worker, aged 38, said that she understands that prices will drop and buy more things with her money. She also hopes to get help with her rent.
The package includes support for businesses. According to the Vietnam National Administration of Tourism, tourism is one of the most affected sectors. 2.5 million people have lost their jobs or had their incomes reduced.
This package aims to increase domestic tourism. Nguyen Tuong, the 41-year-old manager of a Hanoi travel agency, has high hopes. He said that tax reductions are available for many items, including food, transport, and accommodation. His business can also get low-interest loans.
Tuong stated, “After two years in frozen operations, we need to raise money to hire and get the business back on track.”
The stimulus aims to create long-term sustainable growth engines for infrastructure, science, and technology. In addition, the measure includes 176 trillion Vietnamese wong (or 7.74 billion dollars) in infrastructure projects for 2022-22-23. Sustainable development is possible through digital transformation and the green economy.
The support is welcome to ordinary Vietnamese people as Lunar New Year approaches. However, the “urgent” policies do not target long-term consequences. They are primarily health-focused and include investment in central hospitals and grass-roots facilities and paying for vaccines.
