A looser monetary policy should be instituted to support economic growth in the wake of global volatilities, especially the outbreak of the noval coronavirus (nCoV), experts suggested.
The central bank is willing to support liquidity for credit institutions, if needed, as they start providing financial support for the economy.
A strong decline in bilateral trade turnover was due to the long Lunar New Year break in January and impacts from the outbreak of the new coronavirus (nCoV) in China.
The State Bank of Vietnam has directed banks to extend some leeway to customers impacted by the coronavirus outbreak by providing preferential interest, on-lending, or debt restructuring.
Drastic actions must be taken to fight the acute respiratory disease caused by the 2019 novel coronavirus (nCoV), but they must not affect the country’s socio-economic development, Prime Minister Nguyen Xuan Phuc said on February 5.
Banks could consider restructure debt payment period or lower interest rates for enterprises and individual customers facing difficulties from the epidemic.
Many fruit-laden trucks are stuck at border gates because Chinese traders have stopped buying fruit following the nCoV outbreak, hurting Vietnamese farmers.
Besides posing health risks to travelers to China, the acute respiratory illness caused by nCoV is negatively impacting Vietnam in many ways.
The ongoing epidemic is predicted to impact the trade flow of agricultural products between Vietnam and China in six to eight months.
The company is concerned that demand from China, which accounts for half of the group’s shipments of latex, will fall.