However, the government should give consideration to the development of automatic macroeconomic stabilizers that provide an adequate social safety net. The macroeconomic instruments available to stimulate domestic demand were somewhat limited. As in other developing economies, Viet Nam lacks the kind of macroeconomic stabilizers such as unemployment and social security benefits that are triggered instantly as economic conditions worsen. The options used for the fiscal stimulus package included a range of instruments with varying potential for economic stimulus. Social spending may have yielded the most immediate results by increasing disposable income for domestic consumption, followed by employment generated by the implementation of infrastructure projects.
Countercyclical Support