Minister of Planning and Investment Vo Hong Phuc

The government’s tax reduction and interest rate subsidy stimulus packages have rewarded eligible firms despite slow implementation and complicated procedures, Vietnam’s planning and investment minister said.

The minister said the VND28 trillion (US$1.56 billion) in tax incentives and interest subsidies worth VND18 trillion (some $1 billion) had boosted economic growth, which is estimated to be 5.2 percent this year.

Phuc said some stimulus policies would continue, adding support for farmers should be long term. His ministry has asked the government to have SBV issue a decree on agriculture credit.

Speaking after the minister, several assemblymen focused on the packages’ shortcomings.

Representative Ho Quoc Dung said only 20 percent of businesses had accessed subsidized loans due to poor guidance on the issue and confusing procedures.

Representative Nguyen Van Sy said the interest-rate subsidy stimulus package should end that and only the package to support farmers should be continued.

Long-and medium term interest rate subsidy packages should be implemented to help firms improve their technology and increase their competiveness, he said.

Sand export ban

The Minister of Natural Resources and Environment Pham Khoi Nguyen said the recent decision to halt sand exports was a good one.

He said inspections in the Mekong Delta had found that the over-exploitation of sand was destroying the local environment.

“Many provinces have asked the ministry and the central government to allow sand exploitation and some provinces had planned to export up to 80 million cubic meters of sand,” he said.

“But the export of sand is very dangerous especially when the sea level is rising. Future generations will condemn us in the next 20-30 years when they look back on our sand exports.”

Reported by Ngan Anh