Viet Nam

No amount/estimate: (i) 16 March 2020, The SBV cut benchmark policy rates by 50–100 basis points (bps), the short-term deposit rates cap by 25–30 bps, and the short-term lending rates cap for priority sectors by 50 bps; raised its remuneration rates on required VND reserves by 20 bps, and also raised interest rates by the same amount on Vietnam Deposit Insurance, Vietnam Social Policy Bank (VSPB), Vietnam Development Bank, People Credit Funds and microfinance institutions’ deposits at the SBV; (ii) 31 March 2020, SBV has instructed CIs to actively reduce bonus and salary, cut other operating costs, timely adjust business plans (including not paying cash dividends), and use the saved resources to reduce interests; (iii) VSPB also proposed to the authorities to reduce its interest rate charged on loans to the poor household by 15% and to other eligible policy borrowers by 10% starting from April 1 to-end-2020; (iv) 13 May 2020, Further reduction in key policy rates to 4.5% (from 5%) for the refinancing rate and to 3% (from 3.5%) for the discount rate, and 5.5% (from 6%) for the overnight lending interest rate in inter-bank electronic payment and lending; (v) 01 October 2020, Further reduction in key policy rates to 4% (from 4.5%) for the refinancing rate and to 2.5% (from 3%) for the discount rate.

(i) Announced measures in 2020 include (a) deferral of tax (added value tax- VAT, corporate income tax-CIT, and personal income tax-PIT) and land rental payment (for 5 months) to support affected entities and individuals (estimated amount of VND 180 trillion or 3% GDP); (b) affected firms and workers are allowed to defer their contribution (up to 12 months) to the pension fund and death benefit fund without interest penalty (total delayed contribution is estimated to reach VND9.5 trillion or 0.2% of GDP); (c) streamline tax and custom audit and inspection at firms, continued exemption of agricultural land use tax for households and farmers; (ii) 5 June 2020, The National Assembly approved the increase in family allowances deduction of personal income tax from the current 9 million VND to 11 million VND / month for taxpayers, adjusted from 3.6 million VND to 4.4. million dong / month for dependents from 1 July 2020. (iii) 30 May 2020, Allowed contributions and support extended to COVID-19 efforts as reasonable expenses deductible from corporate income taxes.

(i) Import duty exemption for medical supplies and equipment serving COVID-19 prevention; preferential import and export tariffs for businesses operating in the fields of footwear, textiles, agricultural, forestry and fishery product processing, aquatic products, mechanics, supporting industries, and automobile industry (estimated amount of VND6 trillion or 0.1% GDP); (ii) Lowered business registration fees and other fees/charges (estimated support of VND 0.5 trillion); (iii) The government proposed to National Assembly for the reduction of corporate income tax from 20% to 15-17% for about 700,000 SMEs and MSMEs from 1 July 2020 (estimated support of VND 7.8 trillion or 0.13% GDP), and increase family circumstance-based reduction to personal income tax (PIT) for 6.8 million disadvantaged individuals (estimated support of VND 10.3 trillion or 0.2% GDP); (iv) 5 May 2020, Reduced regulations charge and fee rates for a number of fields such as Construction, Travel, and Water Resources; (v) 20 May 2020, The Government proposed a number of policy measures to the National Assembly including: (a) Exempt and reduce a number of tax obligations, pay the budgets of the fields and subjects that are severely damaged by the COVID-19 pandemic, including reducing corporate income tax for small and super small businesses; (vi) 30 May 2020, 50% discount on fees for take-off and landing and flight control services for domestic flights from March-September 2020; (vii) 30 May 2020, Allowed contributions and support extended to COVID-19 efforts as reasonable expenses deductible from corporate income taxes. (viii) 1 June 2020, Reduced fees from 20-30% for some services in the field of transaction registration to ensure labor safety and 20% discount on fees for registering secured transactions. (ix) 5 June 2020, The National Assembly approved the increase in family allowances deduction of personal income tax from the current 9 million VND to 11 million VND / month for taxpayers, adjusted from 3.6 million VND to 4.4. million dong / month for dependents from 1 July 2020.

(i) Deferral of tax land rental payment (for 5 months) to support affected entities and individuals (part of the VND 180 trillion package in 5B1); (ii) cash transfer package worth of VND36 trillion (0.6% of GDP) from the state budget (both central and local government budget) to the following affected entities and individuals for 3 months from April to June 2020: (a) The poor and near poor households; (b) recipients of social protection programs; (c) workers whose employment contracts temporarily suspended or have been on unpaid leave; (d) workers who have employment contracts suspended but are not eligible for unemployment insurance, and laid off self-employed workers; (e) household busineses with annual taxable revenue below VND100 million that temporarily suspended business; (iii) cut electricity tariffs for 3 months to support firms and households affected by COVID-19 (The support is estimated at approximately VND11 trillion or nearly 0.1% of GDP); (iv) cut of telecommunication charges (estimated amount of VND 15 trillion or 0.25% GDP); (v) 30 May 2020, 15% reduction in payable land rent in 2020 for enterprises, organizations, households and individuals directly leased by the State under decisions and contracts of competent state agencies.

(i) Announced measures in 2020 include a cut in electricity tariffs for 3 months to support firms and households affected by COVID-19 (part of the VND11 trillion in (iii) of Measure 5B3); (ii) cut of telecommunication charges (part of the VND 15 trillion amount in (iv) of Measure 5B3); (iii) 30 May 2020, 50% reduction in registration fee for domestically manufactured/assembled cars until end-2020 to stimulate domestic consumption. (iv) 8 June 2020, Increased capitalization for state-owned Vietnam Bank for Agriculture and Rural Development not exceeding VND3.5 trillion from remaining funds in the 2019 budget and subsequently approved by the National Assembly on 10 June 2020.

(i) 9 May 2020, The Ministry of Labor, Invalids, and Social Affairs proposed the bolstering of the Unemployment Insurance Fund Balance by VND3-5 trillion to retrain the labor force. (Ii) 20 May 2020, The Government proposed a number of policy measures to the National Assembly including Allow the Government to proactively adjust the public investment plan in 2020 among ministries, central agencies and localities within the scope of development investment expenditure estimates by 2020. At the same time, implement specific solutions to mobilize and effectively use resources for development investment in the context of difficulties.

(i) 5&7 May 2020, 50% reduction in the rates, fees and charges in the field of securities, banks, and non-bank credit institutions to support those affected by the COVID-19 epidemic until 31 December 2020; (ii) 30 May 2020, 15% reduction in payable land rent in 2020 for enterprises, organizations, households and individuals directly leased by the State under decisions and contracts of competent state agencies.

(i) February 2020, USD500,000 worth of loans under the Greater Mekong Subregion Health Security Project; (ii) As of 18 December 2020, USD566.83 million in loan and guarantees plus 733.84 million in co-financing from other sources; (iii) 8 April 2020, TA: Regional Support to Address the Outbreak of COVID-19 (USD3 million); (iv) 24 July 2020, USD70,000 grant under the TA on Due Diligence and Capacity Development of Trade Finance Program Banks (Subproject 3); (v) 6 October 2020, USD20,000 grant under ADB's TA on Capacity Development for the Supply Chain Finance Program (Phase 2) (Subproject 3); (vi) As of 18 December 2020, USD1.06 million loan under the Supply Chain Finance Program earlier committed in September 2020; (vii) 4 November 2020, USD93.75 under the COVID-19 Smallholder Farmer Livelihood Preservation Loan Project. (viii) 5 November 2020, USD90,000 grant under the TA on Creating Investable Cities in Post-COVID-19 Asia-Pacific: Enhancing Competitiveness and Resilience through Quality Infrastructure. (ix) 9 December 2020, USD5 million in co-financing under the COVID-19 Relief for Women-Led Small and Medium-Sized Enteprises grant; (x) 3 September 2021, Supporting Enhanced COVID-19 Vaccination and Post-COVID-19 Health Security Response in Southeast Asia (USD0.15 million) [update]; (xi) 7 September 2021, Due Diligence and Capacity Development of Trade Finance Program Banks (Subproject 4) (USD0.19 million) [update]; (xii) 22 September 2021, Fostering Regional Cooperation and Integration through Knowledge and Capacity Building of Trade and Supply Chain Finance Program Banks (USD 0.06 million) [update].

(i) May 11, USD1 million grant from the UN COVID-19 Response & Recovery Funds for mitigating the impact of COVID-19 in Viet Nam on the most vulnerable groups and supporting more resilient policies and system. (ii) USD9.5 million in grants for economic support and health assistance from the United States Agency for International Development (USAID) for health and humanitarian assistance. (iii) July 30, USD6.2 million World Bank grant to strengthen Vietnam's COVID-19 efforts under the Pandemic Emergency Financing Facility.