A worker checks the machine at Tin Nghia Coffee Company’s factory in Binh Duong Province

A second stimulus package will help Vietnam secure its economic recovery next year, Deputy Prime Minister Hoang Trung Hai told the press Wednesday.

Vietnam’s central bank said this week it would maintain its benchmark interest rate at 7 percent until early 2010.

Another stimulus package would ensure stable economic growth for Vietnam, Hai said, noting that there are worries the global slump has not really ended yet.

Vietnam put in place a fiscal stimulus package that it valued at 8.6 percent of gross domestic product early this year in a bid to boost economic growth, projected to reach 5.2 percent, the slowest in a decade.

Measures included tax exemptions, reductions and deferments for businesses, and an interest rate subsidy program, under which eligible businesses received four-percent subsidies on short-term loans.

Economists and lawmakers have raised concerns over the effectiveness of this year’s stimulus package, demanding a comprehensive review of its pros and cons before deciding on a new one.

But Hai said the package has proved effective in dealing with the unemployment problem.

“When the economy slowed down, the biggest concern was job loss,” Hai said. “After the package was put in place, the job problem started to ease.”

“Since the economy bottomed out after the first quarter, jobs have been secured.”

The government would make a decision on launching a second stimulus package at a meeting at the end of this week, Hai said.

In a recent review, the National Assembly Finance and Budget Committee said it would be necessary to continue fiscal stimulus measures next year. However, the stimulus next year should be more concentrated, focusing mainly on economic reforms to ensure stable economic growth, the committee said.

Reported by Kap Thanh Long