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Vietnam mulls $2.6bn support for people, businesses affected by COVID-19

Vietnam mulls $2.6bn support for people, businesses affected by COVID-19

Wednesday, April 08, 2020, 10:59 GMT+7
Vietnam mulls $2.6bn support for people, businesses affected by COVID-19
Vietnamese deputies attend a meeting of the Standing Committee of the National Assembly amid the COVID-19 pandemic in this undated photo supplied by the legislature.

The Vietnamese Ministry of Planning and Investment has submitted a report to the National Assembly for opinions on a stimulus package worth VND62 trillion (US$2.6 billion) to support people and businesses affected by the novel coronavirus disease (COVID-19) pandemic.

The use of the amount is detailed in the report signed by Planning and Investment Minister Nguyen Chi Dung on Monday. 

The report was prepared in response to Prime Minister Nguyen Xuan Phuc’s request for a scheme to address difficulties confronting the poor.

Accordingly, six groups will be eligible for the VND62 trillion support.

Specifically, people with meritorious services to Vietnam's past revolution and social protection beneficiaries will receive VND500,000 ($21.5) in monthly additional support besides their regular allowances.

Households living in poverty or near poverty will each receive VND1 million ($43) a month.

These two groups will collect their stimulus checks once every three months.

People who have been on unpaid leave for 14 working days or more will each be provided with VND1.8 million ($77.3) a month in support.

Those who have their employment contract terminated and are not eligible for receiving unemployment benefits or those who work without labor contracts and have lost their jobs are entitled to a monthly sum of VND1 million ($43) per person.

Businesses facing difficulties due to COVID-19, resulting in job cuts, are eligible to take out zero-interest loans of up to 50 percent of the regional minimum wage from the Vietnam Bank for Social Policies (VBSP) to make severance payment to their employees.

Household businesses with taxable revenue of less than VND100 million ($4,300) a year and have had to suspend their operations in adherence to COVID-19 prevention and control measures will each be given VND1 million ($43) a month.

The VND62 trillion will come from the state budget, indirect support from the country’s unemployment insurance fund, and credit from VBSP.

Last month, the government planned to spend VND27 trillion ($1.15 billion) on tax breaks, deferred tax payments, and a reduction in land lease fees to help businesses cope with the pandemic and help the economy stick to its 6.8-percent growth target this year.

Vietnam has so far confirmed 251 cases of coronavirus infection. There has been no death linked to the disease while 122 patients have recovered and been discharged from the hospital as of Tuesday.

In recent meetings, Prime Minister Nguyen Xuan Phuc has constantly urged his cabinet to timely work on an urgent package to support people and entities being affected by the COVID-19 pandemic.

Chairwoman of the lawmaking National Assembly Nguyen Thi Kim Ngan has also affirmed in a recent letter that the legislature will work closely with the government to promulgate timely and effective policies to stop the pandemic.

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Tuoi Tre News


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