Gov’t members: Stimulus package drives economy forward
15:08 | 30/10/2009
VGP – The Government’s stimulus package has helped to prevent economic downturn, stabilize macro-economy and keep the inflation at a reasonably low rate, evaluated the Cabinet’s members at its October regular meeting.

Members of the Government at the October regular meeting, Hà Nội, October 30, 2009 – Photo: VGP

During the meeting, the Cabinet’s members focused on the implementation of the Government’s stimulus package and its effects.

The package was introduced timely and has brought about numerous positive signs to the national economy, said the Government.

The country's GDP growth rate is expected to stand at 5.2% this year, exceeding the National Assembly’s set target. The figure was 3.14% and 4.46% in Q1 and Q2 respectively, and is estimated at 5.67% in Q3 quarter and 6.8% in the last quarter.

The quarter-on-quarter increase of GDP is attributed to the quick recovery of industrial production from -4.4% in January to 11.9% in October compared to the same period last year.

Tax cancellation and exemption policies have eased businesses’ difficulties by increasing impetus to production and stimulating consumption.

By August 31, over 125,500 turns of enterprises and some 937,000 personal income tax payers benefited from tax preferences, of which 36,000 enterprises were offered with 30% reductions of their corporate revenue tax, 42,000 ones with tax cancellation, and 47,000 with 50% cut of VAT.

Despite its limited sources, the Government still issued series of social security policies, focusing on poverty reduction and assistance to victims of natural disasters and to people in disadvantaged areas.

Thanks to social security regulations, the number of poor households is estimated to fall down to about 11% of the population this year.

Regarding the prospect of the national economy, Minister of Planning and Investment Võ Hồng Phúc predicted that it would resume its pre-crisis growth rate next year though challenges are still ahead.

Thus, assistance policies should be continued into 2010, with proper adjustments, to make sure that the economy gets back on track in a stable manner. 

Latest data shows that some US $6.9 billion of the Government’s stimulus package has been disbursed in 2009.

 By Hải Minh

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