Viet Nam should change its economic growth model and restructure the economy to ensure future growth is sustainable, experts said at a seminar held yesterday in HCM City.
Organised by the HCM City-based Dream House Real Estate Group’s International Business Knowledge Corporation in collaboration with Viet Nam Institute of Economics, the seminar attracted more than 200 officials from State management agencies, scientists, experts from universities, associations and economic organisations.
Nguyen Quang Thai, vice chairman of Viet Nam Economic Association, said: “Viet Nam should think about changing its growth model to ensure the sustainability of future growth.”
He said the current high inflation and macroeconomic instability are due to the current growth model – characterised by maximum exploitation of natural resources.
But this model is no longer appropriate in current situation, he said, adding changes should be made to enable it to adapt to the changing environment.
“Restructuring of the economy must be undertaken systematically and receive the support of the whole country,” he said.
The Government has to create a more equal policy environment in order to encourage development of the private sector, especially small and medium enterprises, he said.
Enterprises, for their part, should come up with a long-term vision and find effective ways to enter both domestic and overseas markets.
Meanwhile, consumers should effect savings in their daily expenditure.
Vo Tri Thanh, deputy head of Central Institute for Economic Management (CIEM) said Viet Nam’s financial system has been rated “weak” in current times. He suggested the banking system also be restructured, the central bank be made independent and commercial joint stock banks overhauled.
He emphasized the need to restructure banks, especially those in weak financial health and have poor management capacity, “because they were exposed to numerous risks such as low liquidity and high bad debt ratios.”
These factors may lead to macro-economic instability, he said.
Tran Dinh Thien, head of Viet Nam Institute of Economics said Viet Nam has faced many challenges like high inflation, volatile exchange rates, balance of payments, and financial and monetary market instability.
There were also other shortcomings such as poor infrastructure, electricity shortage and low quality manpower, he said.
He said inappropriate allocation of resources in different sectors in recent years has resulted in an unbalanced economy.
“The country needs to clarify the details of economic restructuring and focus on the quality of development.
“Viet Nam should adjust its strategy to attract foreign investment, give priority to manufacturing and support industries, and promote co-operation among domestic businesses,” he said.
There’s also a need to develop transportation and other infrastructure in economic zones and industrial parks as part of the restructuring efforts, he added
The aim was to create a fair, competitive environment for all economic sectors.
Bui Quang Tuan, deputy head of Viet Nam Institute of Economics said if the strategy is to focus on building and strengthening state-run groups, the restructuring effort would fail, and foreign investors would be discouraged.Foreign direct investment had been a major force in Viet Nam’s economic development. The country should work out a suitable strategy to attract more and make full use of it, he said.
VNS
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