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Long-term stimulus plan needed to counter global economic recession

VGP – PM Nguyen Xuan Phuc has tasked the National Advisory Council for Financial and Monetary Policies to craft an overall plan which would help stimulate the economy beyond this year as the global economic recession caused by COVID-19 has produced comprehensive impacts on Viet Nam.

07/09/2020 07:17

Xuan Phuc presides over a meeting of the National Advisory Council for Financial and Monetary Policies in Ha Noi on July 9, 2020 - Photo: VGP/Quang

The Government chief stressed the task at a meeting of the National Advisory Council for Financial and Monetary Policies in Ha Noi on July 9. The plan must work out matters that need to be fixed, Phuc said, suggesting that the matters may include overspending and support for businesses.

He urged ministries, agencies and localities to demonstrate drastic attitude toward accelerating disbursement of public investment capital and focus on tapping domestic market of nearly 100 million population as part of the efforts to reboot the economy.

Phuc, who is Chairman of the Council, also pressed subordinate levels to create a business environment that is highly competitive enough to lure foreign investment inflows.

Members of the Council agreed the global and regional situation will continue with complicated and unforeseeable changes as the COVID-19 pandemic may last long, thus the Government should have design economic recovery policies not just for 2020 but also for the next two years.

Economist Bui Duc Thu suggested the Government should have special policies to further step up business restructuring that may cover inputs, investment and labor, and strengthen the resilience of the economy.

Dr. Vo Tri Thanh said the Government needs to beef up the implementation of stimulus packages while Dr. Tran Du Lich suggested there should be stimulus packages as many sectors may only encounter difficulties in the third quarter this year./.

By Kim Anh