Vietnam has unveiled details of the stimulus package worth $8 billion to spur growth amid global recession, state media reported yesterday.
The bulk of the money - some $5.2 billion - will be used for infrastructure and development projects, the Thanh Nien (Young People) newspaper quoted Minister of Planning and Investment Vo Hong Phuc as telling a meeting of the National Assembly's Standing Committee on Tuesday.
The package includes $1.6 billion in tax breaks for enterprises and individuals and $400 million for "welfare" purposes. It also includes $1 billion announced earlier this year, which was used to subsidize bank loans. Local companies have borrowed over 260 trillion dong ($15 billion).
Phuc also said that the government lowered the growth target for this year to 5 percent from previous goal of 6.5 percent. Vietnam's economy grew 3.1 percent in the first quarter, the lowest in a decade.
(China Daily 05/14/2009 page17)