Southeast Asia

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 26,503
% of GDP (2019): 10.12%
% of Regional Total Package: 7.65%
Package Per Capita in USD: 277.40
Note: Measures 9 and 10 are added to the sum of Measures 1-5.
Measure Amount (Local) Amount (USD) Details Update Source
01 - Liquidity Support info_outline
01A - Short-term lending info_outline

No amount/estimate: The State Bank of Vietnam (SBV) stated that it is ready to provide liquidity support, including through open market operations and refinancing windows, for Credit Institutions (CIs) to implement the government’s programs and help CIs to address nonperforming loans.

01B - Support policies for short-term lending info_outline
01C - Forex operations info_outline

No amount/estimate: March 23, With depreciation pressures rising, the SBV announced that it would intervene in the currency market as needed to smooth excessive exchange rate volatility.

02 - Credit creation info_outline
02A - Financial sector lending/funding info_outline
02B - Support policies for long-term lending info_outline

No amount/estimate: (i) March 16, 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) March 31, SBV has instructed CIs to actively reduce bonus and salary, cut other operating costs, timely adjust business plan (including not pay dividend in cash), and use the saved resources to reduce interests; (iv) 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; (v) May 13, 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.

02C - Loan guarantees

May 30, Government guarantees for loans to aviation businesses with outstanding loans as of December 31, 2019.

03 - Direct long-term lending info_outline VND316,000,000,000,000 USD13,600,172,154
03A - Long-term lending info_outline VND16,000,000,000,000 USD688,616,312

(i) The SBV is instructed to provide refinancing with 0% interest rate to Viet Nam Bank for Social Policies (VBSP) for providing unsecured loans with 0% interest rate to affected firms for making suspension pay to their workers. The total loan value is estimated at VND16 trillion (0.3% of GDP). (ii) May 30, 2% reduction in interest rates for direct and indirect loans to SMEs from the SME Development Fund.

03B - Forbearance VND300,000,000,000,000 USD12,911,555,842

The authorities announced a credit package totaling VND300 trillion (about 5% of GDP) from the banking sector for affected firms and households through debt rescheduling, exempting, and reducing interests/fees, retaining restructed debts in the same debt category as before restructuring . This is time-bound from Jan 23 to 3 months after the Prime Minister’s announcement of the ending of COVID-19 epidemic; Banks have been exempting and reducing fees (including interbank transaction fees for small amounts, and credit information subscription fees).

04 - Equity support info_outline
05 - Government support to income/revenue VND299,800,000,000,000 USD12,902,948,139
05A - Health VND16,200,000,000,000 USD697,224,015

Direct spending for COVID 19 Prevention. (i) The state budget alocated VND 16.2 trillion (0.3% GDP) to prevent and control epidemics, in which D9.5 trillion (0.2% GDP) for purchasing medical equipment and materials to prevent and combat epidemics; D6.7 trillion (0.1% GDP) is for special allowances for forces engaged in epidemic prevention and control; expenses for isolated people, medical examination and treatment during the isolation period. (ii) May 6, Temporary elimination of import taxes on medical and protective equipment.

05B - Non-health VND283,600,000,000,000 USD12,205,724,123

(i) Announced measures 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) 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); (d) lower business registration fees and other fees/charges ( estimated support of VND 0.5 trillion); and (e) streamline tax and custom audit and inspection at firms, continued exemption of agricultural land use tax for households and farmers; (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) 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); (vi) May 5, Reduced regulations charge and fee rates for a number of fields such as Construction, Travel, and Water Resources; (vii) May 5&7, 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 the end of December 31, 2020; (viii) May 9, 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. (ix) May 20, 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; and (b) 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. (x) May 30, Allowed contributions and support extended to COVID-19 efforts as reasonable expenses deductible from corporate income taxes. (xi) May 30, 50% reduction in registration fee for domestically manufactured/assembled cars until end-2020 to stimulate domestic consumption. (xii) May 30, 50% discount on fees for take-off and landing and flight control services for domestic flights from March-September 2020. (xiii) May 30, 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. (xiv) June 1, 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. (xv) June 5, 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 July 1, 2020. (xvi) June 8, 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 June 10. [update]

06 - Budget reallocation info_outline

No amount/estimate: May 30, 70% reduction in remaining domestic and foreign conferences and missions funding of ministries, central agencies, and localities (with a few exceptions) and 10% savings of other regular recurrent expenditures in 2020.

07 - Central bank financing government
07A - Direct lending & reserve drawdown
07B - Secondary purchase: government securities
08 - International Assistance Received VND4,423,479,300,000 USD190,380,000
08A - Swaps info_outline
08B - International loans/grants VND4,423,479,300,000 USD190,380,000
08B1 - Asian Development Bank VND4,400,244,300,000 USD189,380,000

(i) February, USD500,000 worth of loans under the Greater Mekong Subregion Health Security Project; (ii) April, USD187.18 [update] million worth of loans and guarantees under the Trade Finance Program (Additional Financing) plus USD80.21 in co-financing from other sources; (iii) April 8, USD950,000 grant under TA: Regional Support to Address the Outbreak of COVID-19; and (iv) April 24, USD750,000 grant under TA: Policy Advice for COVID-19 Economic Recovery in Southeast Asia.

08B2 - Other VND23,235,000,000 USD1,000,000

(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.

09 - International Assistance Provided
09A - Swaps info_outline
09B - International loans/grants
10 - No breakdown
11 - Other Economic Measures

(i) On March 31, the State Bank of Vietnam instructed Credit Institutions (CIs) to actively reduce bonus and salary, cut other operating costs, timely adjust business plan (including not pay dividend in cash), and use the saved resources to reduce interests; (ii) The Government cut at least 30% of conference funding, domestic travel expenses and 50% of overseas working missions; (iii) Several fees for securities services have been also reduced or made exempt between March 19 and August 31 to support the stock market; (iv) Additional measures have been implemented to accelerate public investment disbursement, including permitting direct procurement, transforming PPP projects into public investment projects, etc. and (v) April to May, Temporary measures on (a) export licensing requirements on face masks; and (b) export quotas on rice for national food security.

12 - Non-Economic Measures

(i) On March 9, the government tightened entry restrictions: no tourist visa is issued for Schengen countries, the United Kingdom and some US states; Only business and diplomatic entries are still allowed, but those travellers have to submit health certificate/questionnaire; All foreign and national travellers coming from infected countries have to be quarantined for 14 days; (ii) On March 17, the government announced that it stops visa issuance to foreign visitors for 30 days from March 18, except for some specific cases, such as diplomats/officials. (iii) From the week of March 23, all international flights have been suspended until the end of April, except some special occasional flights to bring back Vietnamese nationals. (iv) Schools have not been open after the lunar New Year holiday (beginning February). (v) The government announced the National Epidemic status on April 1 and imposed social isolation in national scale from April 1 to April 22. Restricitions were removed on April 23, except for few districts in Hanoi, Ha Giang, and Bac Ninh provinces. International travelling/arrivals are still banned until April 30 at least. (vi) April 29, More frequent domestic flights and local trains were introduced to connect big cities and provinces and up to 50% of public transportation has resumed with full operations in low risk provinces. (vii) May 4, Middle and High Schools in major cities resumed classes, while kindergarten and elementary schools resumed on May 11. (viii) May 7, Most schools and universities and non- essential services (except dancing clubs and karaoke) have reopened since May 7 while international travel/arrivals continue to be banned.