Nguyen Quoc Hung, Secretary General of the Banking Association, said that when the pandemic broke out, the State Bank of Vietnam issued Circular 01 on restructuring debt payment terms, fee exemptions and reductions, and maintaining support for groups of customers affected by the pandemic. The Circular has been revised three times.

Hung proposes that the government increase loans from the State Bank and issue bonds to help businesses recover quickly.   

“The National Assembly, the Party, and Government have adopted many incentives for businesses. Now, it’s necessary to have a fiscal policy by cash. Ministries, sectors, and organizations should share the difficulties with businesses. Credit institutions must have appropriate loaning mechanisms,” said Hung.

Economist Can Van Luc, a member of the National Fiscal and Monetary Policy Advisory Council, said issued policies should be severely implemented.

“We have calculated that if we continue to support with fiscal policies, the impact on inflation, public debt, and the State budget will all be within the safe threshold. Our view is that we have to accept higher public debts and State budget deficit to help businesses and people. It will contribute to faster and better economic recovery and nurture long-term revenue. The support package should come about in one to two years,” said Luc.

The business community is waiting for policies on tax and fee reduction as well as capital access for recovery. Besides government support, businesses should restructure and renovate their management and performance to save costs, find ways to retain employees, and invest in restoring production.