Vietnam to Announce US$6 Billion Stimulus Plan

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Dec. 15 – Vietnam is set to announce a US$6 billion economic stimulus package later this month, says Deputy Prime Minister Nguyen Sinh Hung.

In an earlier report, the government said it would release a US$1 billion into the economy to cope with the global economic slowdown.

The economic stimulus package will be invested in schools, hospitals, rural infrastructure and home construction, in addition to projects to boost production and consumption.

'We need to act now to boost production and consumption and maintain growth at 6-6.5 per cent in 2009,' Mr. Hung was quoted as saying by Tien Phong newspaper.

Vietnam's gross domestic product grew by 6.7 percent this year and is forecase to increase by 6.5 percent.

Mr. Hung added that the government release details of the stimulus package later this month.The stimulus package would include the government providing guarantees to help companies borrow up to US$2 billion from foreign banks.