Additional stimulus packages may be needed to support the economy

06:00 | 13/08/2020 Economy

(VEN) - Vietnam’s economy has shown signs of recovery, but the Covid-19 outbreak in the central coastal city of Da Nang will pose difficulties for trade and production activities, requiring long-term government strategies and specific response. To Hoai Nam, permanent deputy chairman and secretary-general of the Vietnam Association of Small and Medium Enterprises, talked about the issue in an interview with Vietnam Economic News’ Hoa Quynh and Thu Phuong.

additional stimulus packages may be needed to support the economy
To Hoai Nam, permanent deputy chairman and secretary-general of the Vietnam Association of Small and Medium Enterprises

Vietnam’s gross domestic product (GDP) grew 1.81 percent in the first half of the year compared to a year ago. However, there are negative signs regarding the future. What do you think?

The Vietnamese government has implemented a variety of measures to overcome difficulties for trade and production activities, contributing to economic growth and ensuring social security. The country’s GDP grew 1.81 percent in the first half of the year compared to a year ago, a relatively encouraging result given the global impact of the Covid-19 pandemic. The positive GDP result reflects determination to fight the disease and prioritization of people’s health and lives, even at the expense of economic benefits.

In my opinion, negative signs regarding the future are not reliable. We should identify the Covid-19 outbreak in Da Nang in perspective that it will only pose more difficulties for trade and production activities, and circulation of goods.

What should ministries, agencies and businesses do to maintain growth?

Da Nang is applying social distancing measures, and each citizen and enterprise must comply with the recommendations for pandemic prevention and control. In the current context, enterprises need to devise solutions to protect their workers who are an important resource for continued trade and production activities. The government has also adopted an interest-free loan package for a maximum duration of 12 months to pay employees in enterprises affected by the Covid-19 pandemic.

additional stimulus packages may be needed to support the economy

In addition, enterprises need to understand the actual situation to make accurate decisions. Specifically, enterprises must closely follow market developments and keep up-to-date with information published by ministries and agencies. Given that trade exchanges are disrupted by the Covid-19 pandemic, enterprises need to pay special attention to and promote investment in digital transformation, contributing to strong changes in management and operation, and maintaining and developing relations with partners. In particular, digital transformation is a way for enterprises to be compatible with the government’s public services.

Does Vietnam need stronger stimulus packages to support the economy and businesses, especially small- and medium-sized enterprises?

The government has adopted many important and effective support packages. If new stimulus packages continue to be launched, it will lead to overlapping in policy implementation. What needs to be done now is to observe market developments, catch up with consumer habits and trends, and devise appropriate solutions and strategies.

Special stimulus packages to support the economy and enterprises should be adopted in the future.

On the side of the association, we are continuing to offer support for enterprises, such as giving advice on confronting difficulties and challenges in the process of negotiations and order deliveries, providing market and financial forecasts, receiving information from enterprises to counsel them promptly, and making suggestions to the government to resolve difficulties for enterprises.

Hoa Quynh & Thu Phuong