Answering National Assembly (NA) Standing Committee deputies on March 20 about the US$1 billion economic stimulus package, Minister of Planning and Investment Vo Hong Phuc said that it was difficult for the government to consult the NA because the NA doesn’t convene very often.

Minister of Planning and Investment Vo Hong Phuc.

To support 62 poor districts, the government had to pay in advance while waiting for the NA’s approval. It was queried whether the government ought to have waited for the NA’s approval before implementing the US$1 billion economic stimulus package in the form of interest rate subsidies.

Phuc said some say that in the US, the president had to ask for Congress’ approval on a stimulus package, so why not in Vietnam? In Phuc’s opinion, each country has its own procedures and organisation. In the US, only the president makes decisions so the president’s decisions need to be checked by the executive body. In Vietnam, policies are discussed by the government, the NA Standing Committee and the Politburo.

“The NA comes together for two sessions a year, each time for only one month, so it is difficult for the government to consult the NA about it opinions,” he explained.

Emphasising that the stimulus package was an unscheduled solution, Phuc said the capital will come from foreign currency reserves. The government has the right to use the reserves.

“It is the same for every country that in difficult situations, the government can mobilise reserve capital to support banks. This policy would have come too late if the government had waited till the NA session this May to announce the plan. However, the government will report to the NA for supervision at the next session,” the minister said.

After several months implementing the stimulus package, banks have lent VND150 trillion ($8.82 billion) of a total VND600 trillion. Many deputies expressed concerns about the practical effects of this package and whether there would be debt turnover.

The Governor of the State Bank of Vietnam Nguyen Van Giau affirmed that so far there had been no case of debt turnover detected.

A deputy from Hung Yen province wanted to know how much money from the stimulus programme would go to enterprises, because in Hung Yen, only one of 4,000 enterprises is eligible to access this source of capital.

NA deputies emphasised that the budget for the stimulus package was the people’s money so the programme would be transparent and supervised by the NA.

Phuc stated that budgets for investment and consumption were always public. All banks participating in the stimulus programme must publicly declare how the capital is being used.

However, the minister did not answer some questions about specific measures to prevent losses and corruption related to the stimulus package and a question about responsibility.

Phuong Loan