The Vietnamese Ministry of Industry and Trade plans to increase 12.3 per cent of investments for industrial projects to VND153.186trn (over US$9bn) this year with a focus on exports-oriented sectors.
The cash will be used to fund energy, oil refining, coal mining, steel ingots and sheets, fertilizer, paper pulp, and material production projects, the MOIT was quoted the military-run Quan Doi Nhan Dan newspaper and Vietnam News Agency as saying.
The MOIT unveiled the plans after Vietnam’s exports and industrial production dropped 24.2 per cent and 4.4 per cent on year, respectively, to US$3.8bn and VND50.64trn (US$2.99bn) in the first month this year due to global economic downturn, according to the GSO.
The MOIT urged contractors of power projects to ensure to meet the construction schedules as part of efforts to ensure sufficient power during this dry season.
The Vietnam Industrial Construction Corporation (Vinaincon) is close to finishing installation of a 1.51 million ton per year production line of Thai Nguyen cement factory and put into operation in the third quarter this year.
The government of Vietnam has urged the State Bank of Vietnam and local banks to boost lending to local businesses by subsidising four per cent of interest rates as part of the US$1 billion demand-stimulus package to ward off economic slowdown.
So far, Vietnam’s big banks announced to ready to lend up to VND155trn (US$9.171bn) after the SBV announced guidelines for four per cent interest rate subsidy.
Late last year, the government announced a US$6bn economic-stimulus package to avert economic recession.
This year, Vietnam targets exports growth of 13 per cent to US$72bn and GDP growth rate of 6.5 per cent, up from 6.23 per cent last year.