Southeast Asia

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 26,967.94
% of GDP (2019): 10.30%
% of Regional Total Package: 6.15%
Package Per Capita in USD: 279.57
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: 23 March 2020, 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
02B1 - Interest rate adjustments

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.

02B2 - Other policies to support long-term lending
02C - Loan guarantees

30 May 2020, Government guarantees for loans to aviation businesses with outstanding loans as of December 31, 2019.

03 - Direct long-term lending info_outline VND320,000,000,000,000 USD13,772,326,232
03A - Long-term lending info_outline VND20,000,000,000,000 USD860,770,389

(i) The SBV is instructed to provide refinancing with 0% interest rate to 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) 30 May 2020, 2% reduction in interest rates for direct and indirect loans to SMEs from the SME Development Fund. (iii) See VND4 trillion soft loan component of Vietnam Airlines' rescue package in (xvii) in Measure 4.

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 23 January 2020 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 VND6,800,000,000,000 USD292,661,932

17 November 2020, The National Assembly approved a VND12 trillion rescue plan for flag carrier Vietnam Airlines involving issuance of VND8 trillion in new shares (of which 85% will be purchased by the government's holding company, State Capital Investment Corp.) and VND4 trillion in soft loans.

05 - Health and income support VND299,800,000,000,000 USD12,902,948,139
05A - Health support VND16,200,000,000,000 USD697,224,015

Direct spending for COVID 19 Prevention. (i) The state budget for 2020 allocated VND 16.2 trillion (0.3% GDP) to prevent and control epidemics, in which VND9.5 trillion (0.2% GDP) for purchasing medical equipment and materials to prevent and combat epidemics; VND6.7 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) 6 May 2020, Temporary elimination of import taxes on medical and protective equipment.

05B - Income support VND283,600,000,000,000 USD12,205,724,123
05B1 - Tax and contribution deferrals and policy changes VND189,500,000,000,000 USD8,155,799,440

(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.

05B2 - Tax and contribution rates reduction VND24,600,000,000,000 USD1,058,747,579

(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.

05B3 - Subsidies to individuals and households VND62,000,000,000,000 USD2,668,388,207

(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.

05B4 - Subsidies to businesses VND3,500,000,000,000 USD150,634,818

(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.

05B5 - Indirect income support VND4,000,000,000,000 USD172,154,078

(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.

05B6 - No breakdown (income support)

(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.

05C - No breakdown (health and income support)
06 - Budget reallocation info_outline

No amount/estimate: 30 May 2020, 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 and reserve drawdown
07B - Secondary purchase: government securities
08 - International Assistance Received VND13,627,792,200,000 USD586,520,000
08A - Swaps info_outline
08B - International loans/grants VND13,627,792,200,000 USD586,520,000
08B1 - Asian Development Bank VND13,239,767,700,000 USD569,820,000

(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, USD500,000 grant under TA: Regional Support to Address the Outbreak of COVID-19; (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.

08B2 - Other VND388,024,500,000 USD16,700,000

(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. (iii) July 30, USD6.2 million World Bank grant to strengthen Vietnam's COVID-19 efforts under the Pandemic Emergency Financing Facility.

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

(i) On 31 March 2020, 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 19 March and 31 August 2020 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 2020, Temporary measures on (a) export licensing requirements on face masks; and (b) export quotas on rice for national food security. (vi) 24 September 2020, The Government launched an incentives program to support high-tech start-ups and boost the country's growth potential. Starting 5 October 2020, innovative startups in information technology and clean energy, among others, will become eligible for preferential loans, various tax incentives, as well as exemptions from land leases in industrial parks.

12 - Non-Economic Measures
12A - Measures affecting travel and transport (local and international)

(i) On 9 March 2020, 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 17 March 2020, the government announced that it stops visa issuance to foreign visitors for 30 days fromm 18 March, except for some specific cases, such as diplomats/officials. (iii) From the week of 23 March 2020, all international flights have been suspended until the end of April, except some special occasional flights to bring back Vietnamese nationals. (iv) 29 April 2020, 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. On 15 December 2020, Singapore and Viet Nam announced plans of launching a green lane for business and official travel in early 2021. On 5 January 2021, Authorities announced the suspension of inbound flights from countries with new COVID-19 variants initially including the United Kingdom and South Africa.

12B - Measures affecting business and workplace

(i) The government announced the National Epidemic status on 1 April 2020 and imposed social isolation in national scale from 1 April to 22 April. Restricitions were removed on 23 April, except for few districts in Hanoi, Ha Giang, and Bac Ninh provinces. (ii) 7 May 2020, Non- essential services (except dancing clubs and karaoke) have reopened since 7 May.

12C - Others

(i) Schools have not been open after the lunar New Year holiday (beginning February 2020). (i) The government announced the National Epidemic status on 1 April 2020 and imposed social isolation in national scale from 1 April to 22 April. Restricitions were removed on 23 April, except for few districts in Hanoi, Ha Giang, and Bac Ninh provinces. (ii) 4 May 2020, Middle and High Schools in major cities resumed classes, while kindergarten and elementary schools resumed on 11 May. (iii) 7 May 2020, Most schools and universities have reopened since 7 May 2020.