Vietnam Today

Minister of Planning and Investment Nguyen Chi Dung has told an extra-ordinary session of the National Assembly on January 7 that about 42 per cent of Vietnam’s economic recovery package will be implemented and disbursed in 2022 and the remainder next year. The government will also ensure transparency and anti-corruption in fiscal and monetary policies.

The Advisory Council has proposed that the Ministry of Health grant conditional circulation registration for three medicines from domestic producers containing Molnupiravir for Covid-19 treatment.

At a conference on January 6 on State budget tasks in 2021 and the plan for 2022, Prime Minister Pham Minh Chinh asked the financial sector to effectively manage budget revenue and expenditure this year, control public debt, and focus on combating tax losses and commercial fraud. The State budget deficit is estimated at 4 per cent of GDP this year, with inflation below 4 per cent. State budget overspending was more than VND315 trillion ($13.8 billion) last year.

At a government conference with localities on January 5, Prime Minister Pham Minh Chinh identified eleven risks and challenges in socio-economic activities this year, including economic restructuring, the budget deficit, bad debt risks, and inflationary pressure. He also spoke of measures to overcome difficulties and challenges, with it being necessary to continue to innovate, be creative, and take drastic and effective action.

Though inflationary pressure will be great from the beginning of 2022, with the Lunar New Year (Tet) holiday on the horizon and large-scale economic stimulus packages in place, there remains plenty of space to keep Vietnam’s CPI at below 4 per cent, economists believe. International organizations have forecast CPI of 3.5-4 per cent for the year.

According to an analyst from Mirae Asset, the economic stimulus package of nearly VND350 trillion ($15.35 billion) submitted to the National Assembly by the Ministry of Planning and Investment (MPI) will meet investors’ expectations. With the boost in public investment, even the banking sector, which has been dormant for six months, will be active again.