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Tuesday, July 23, 2024

PM requires economic stimulus measures to fuel supply, demand

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HCMC – Prime Minister Nguyen Xuan Phuc has requested that more fiscal and monetary policies be mapped out to stimulate Vietnam’s economy in the next four months, aside from direct measures to support businesses and manufacturing facilities.

Addressing the regular Government session on socio-economic issues on September 4, PM Phuc urged Government members to discuss economic stimulus measures to achieve the highest possible economic growth rate for 2020, especially policies to support business, manufacturing activities, and employees.

To concurrently fight against the Covid-19 pandemic and recover the local economy, the Cabinet leader highlighted the need for more drastic measures to stimulate the country’s economic growth in both demand and supply.

Accordingly, fiscal and monetary policies must encourage the growth of consumption, investment, and exports. In addition, PM Phuc required the constant upgrade of science and technology, the improvement of manufacturing capacity and competitiveness.

The Government leader asked localities to accelerate public investment capital disbursement, cut lending rates, boost exports, stimulate domestic consumption, and attract social investment.

To stimulate the domestic market, the leader requested the issuance of specific policies in terms of tourism, retail, transportation, lodging and accommodation, health care, and education.

He assigned the ministries, agencies, and localities to continue removing obstacles facing businesses and effectively implement existing aid packages.

According to a Ministry of Planning and Investment report, many macro-economy figures were improved last month. Foreign exchange reserves reached some US$92 billion and are expected to hit US$100 billion by the end of this year.

The August’s consumer price index (CPI) inched up 0.07% month-on-month, and the average CPI in the January-August period rose 3.96% compared to the year-ago figure. Foreign exchange rates remained stable and lending rates have likely continued the downward trend to support business operations.

Apart from that, Vietnam’s export activities remained positive as the country exported over US$174 billion worth of products in the year to August, up 1.6% year-on-year. The country enjoyed a trade surplus of nearly US$12 billion during the eight months.

Further, public investment disbursement has improved substantially, with many localities determined to disburse all public investments allocated this year.

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