LookAtVietnam – A second stimulus package has been approved by the government in the monthly cabinet meeting.

Government office’s chairman Nguyen Xuan Phuc at the press conference on October 30.

More stimulus: Who’s for, who’s against?

The move was announced by government office chairman Nguyen Xuan Phuc on October 30.

Phuc said cabinet members spent most of the time discussing economic stimulation plans and solutions, particularly whether the government should launch a second stimulus package or not.

After carefully considering the influence of a second stimulus package on the economy, the government decided to continue the policy in 2010 to help people and enterprises stabilise production.

However, the government has made some amendments towards cutting down the time and the scale of stimulation.

Specifically, medium and long terms projects that need to purchase rural equipment will be supported until the end of 2010, but the interest rate subsidy will reduce from 2 from 4 percent.

The government’s aim is to not prolong the assistance policy in the form of tax reduction and exemption. Enterprises can pay corporate income tax up to one quarter late.

The source and the volume of capital for the second stimulus package is not made clear yet but the total capital for the second package will be much less than the first, said Minister of Planning and Investment Vo Hong Phuc.

The government decided to maintain goals on social welfares.

VietNamNet/TBKTVN