Boosting public investment disbursement is an important channel for the country’s socio-economic growth, Prime Minister Nguyen Xuan Phuc said at a meeting in Hanoi on March 27 to prepare for a teleconference between the Government and localities on March 31.

Prime Minister Nguyen Xuan Phuc speaks at the meeting (Photo: VNA)

PM Phuc said nearly US$30 billion of public investment needs to be disbursed this year, including State budget capital and loans. In January-March, the amount of undisbursed capital was still big despite considerable efforts.

The PM ordered quick implementation of key projects and strict punishments for heads of ministries, departments and localities whose capital is disbursed slowly.

He said at the G20 leaders’ video conference on March 26, countries expressed their strong determination to recover the global economy by implementing a number of stimulus packages.

Domestically, severe droughts and saltwater intrusion in southern provinces, along with the African swine fever, avian flu, and particularly the COVID-19 pandemic are hitting all social aspects hard, the PM noted.

Facing the situation, it is necessary to hold a nationwide teleconference to discuss four major issues: removing difficulties for business and production, especially the aviation and tourism industries; boosting public investment disbursement; ensuring social welfares in the face of the unpaid leave and unemployment; and securing social order and safety.

Regarding the fiscal policy, the PM asked the Ministry of Finance to continue reviewing and extending the payments of land use tax, increasing expenses for the fight against the COVID-19 pandemic, ensuring social welfares, and cutting unnecessary regular expenditures.

He tasked the ministry to work with the State Bank of Vietnam and the Ministry of Planning and Investment to seek supplementary sources for the State budget.

Regarding monetary policies, the PM reminded measures to reduce interest rates and provide no-interest loans for businesses to pay for employees, as well as use part of the foreign exchange reserves to support the State budget in emergency cases, and study the launching of a stimulus package from the Government bonds as proposed by ministries.

Pertaining to support for workers, PM Phuc agreed with the proposal of the Minister of Labour, Invalids and Social Affairs to suspend social insurance premium payments according to law.

He agreed to provide direct assistance for workers who had to stop their jobs and loans for businesses to pay salaries to their employees without interest rates. The Ministry of Labour, Invalids and Social Affairs will cooperate with the State Bank of Vietnam to implement this measure, he said.

The Government leader also ordered measures to support the private and State economic sectors facing difficulties at this time. 

PM Phuc asked ministries and sectors to mull over solutions to support the real estate market - an important growth channel – with a focus on the social housing segment.