WORLD> Asia-Pacific
Vietnam plans to issue more gvt bond to boost economy
Updated: 2009-02-27 13:39

HANOI -- The Vietnamese National Assembly Standing Committee on Thursday discussed a plan to increase this year's government bonds by an additional $1.1 billion, the local newspaper Vietnam Economic Times reported Friday.

The additional amount will bring the total amount of government bond to about $3.2 billion. The proposal of additional bond issuance has caused many different opinions. Some members of the National Assembly agreed with the necessity to newly-issued batch of bond. Some, however, said that more government bonds could cause an increase in inflation.

The agreement to issue additional government bond by the committee was among Vietnamese government's measures to spur economic growth and ensure social security.

The additional bond is expected to target some major areas such as investment in health sector in communes and provinces of Vietnam nationwide, upgrading infrastructure of schools and dwelling houses for teachers and improving roads for cars accessible to remote and rural areas.  

The plan will be submitted to the 12th National Assembly's 5th session slated to convene in the coming May for approval.