In discussing effects of the interest rate subsidy stimulus package, some economic experts suggested that the National Assembly should supervise the flow of money and the reform and improvement of the monetary control ability of the State Bank of Vietnam in the long run.

The 4% interest rate subsidy package is not new because previously we compiled Decree 51 on providing interest rate subsidies for projects in fields enjoying investment encouragement.

However, we had to set up a council to define accurately which enterprises and which projects would be eligible for the subsidies. That way couldn’t help completely prevent abuse.

At present, in the urgent situation, we are employing urgent assistance measures, but we need to closely evaluate and supervise the process to prevent negotiations between banks and borrowers.

Susan J. Adams, expert of STAR (Support for Trade Acceleration) project

One-third of the interest rate subsidy package of Vietnam is for state-owned enterprises. Is it appropriate? Especially as Vietnam plans to narrow the state-owned sector and widen the market for small- and medium-size enterprises? Meanwhile, there have been warnings about investment in infrastructure to head to sustainable growth.

The monetary control ability of the State Bank of Vietnam needs to be improved. It seems that the Chinese central bank is more skilled than the central bank of Vietnam in helping the government absorb a huge amount of capital from foreign investment.

Transparency is a must for the stimulus package by having a website. Until now, the effect of that package is still vague. Moreover, the National Assembly should participate to supervise where the money is flowing.

It is complicated to choose a suitable policy at this moment. Vietnam is facing heavy internal and external pressures. The world economy is shaken because of the financial storm and economic regression, while the Vietnamese economy is very open and macro-economic risks are high. Inside the economy, Vietnam is under pressure to prevent economic slowdown, ensure social security and continue making healthy macro-economic decisions.

Other parts in the $6 billion economic stimulus package needs to be transparent and specific in terms of targets and subjects. It will help improve market confidence and the implementation effect.

Chairman of the National Assembly Economic Committee Ha Van Hien

The National Assembly Economic Committee will discuss and consider issues related to interest rate subsidies, such as side effects, emerging problems, the possibility of budget deficit, and the control of the money flow to ensure it runs to the right places. 

Le Nhung