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Monetary policies alone will not help stimulate demand effectively
Analysts have pointed out that it is impossible to rely on one or another single policy to stimulate demand. A lot of policies need to be implemented concurrently in order to obtain the best results.
The market will have more purchasing power as poor people will receive VND 200,000 each from the Government to enjoy Tet. According to the Ministry of Finance, the total sum of money for the program will reach VND 3,800 billion. The Government has been determined to bring money to people before Tet.
However, analysts believe that more things need to be done in order to stimulate demand. The demand stimulus program should also aim at those who have higher payment capabilities. However, it seems that the demand stimulus measures aiming at these subjects, including the program on funding consumption, has not brought the desired effects.
Eximbank Vietnam has launched a program on funding individuals’ consumption. Clients can borrow up to VND 500 million with real estate being the mortgage. The bank has promised to deal with loaning applications and give answers within 48 hours.
Other commercial banks have also launched similar programs. A series of financial companies have been offering to provide credit to fund individual consumption. Everyday, employees of the companies diligently call those persons whose telephone numbers they have, to persuade them to borrow money to serve individual purchases.
The current situation seems to be quite different from six months ago, when the ‘credit valve’ was completely locked to serve the fight against inflation. Nowadays, the valve has been unlocked to push up disbursement. However, analysts said, the money has not been transferred from banks to individuals’ pockets to serve individual purchases of commodities and services.
Experts have pointed out that in order to stimulate the demand, it is necessary not only to provide money to individuals, but also to encourage individuals, who are still obsessed with the high-inflation days, to spend money.
However, the big opportunity to do that is over. Tet is coming in just several days, and people now only spend the money they have, while they do not think of big expenses and they do not think of borrowing money from banks.
Bankers wish the policy on personal tax income payment extension had been announced sooner, which would have helped a lot in stimulating the demand.
If people had known about the tax payment delay before, they would have spent more money on commodities and services.
It is impossible to successfully stimulate the demand with only one policy. In order to successfully fight against the economic slowdown, monetary policies need to be associated with the fiscal policies. Currently, the monetary policies (loosening the consumption credit) are still ‘acting single-handedly,’ implementing the task of stimulating the demand, while the fiscal policies (tax exemption or tax payment extension) remain unclear.
Tuoi tre
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