Overhauling
Vietnam’s economy will be a top priority during the next five years.
The task was highlighted at the 13th National
Assembly’s second session, which opened last week in Hanoi and is expected to
approve five laws, one resolution and make socio-economic development targets
for 2012 and 2011-2015.
The 46-day session will concentrate on
economic restructuring pertaining to the renewal of Vietnam’s economic growth model.
Prime Minister Nguyen Tan Dung said Vietnam’s economic restructuring would be
in step with improvements in state investment, state-run enterprises’
operations and financial markets. Dung said improved state investment capital
usage was “an urgent task” as over the past years “many localities have been in
a race to expand industrial parks and economic zones without weighing their
ability to lure investment capital.”
“Besides, local authorities have approved too
many projects without taking their financial health into account. Thus,
projects have failed to be implemented, while more notably, the state has been
unable to rally sufficient capital for key projects,” the premier said.
For example, Vietnam had 267 industrial parks
and 650 industrial complexes, but only 40 per cent of them were occupied by
projects, said Vietnam Economics Institute’s head Tran Dinh Thien.
In another case, the country had 266 sea
ports, but only nine of which could be upgraded to receive 50,000 dead weight
tonnage ships, he said. “Capital from the state coffers, government bond
issuances and credits will be used exclusively for national and urgent
projects,” Dung said. “Mechanisms for state investment management and use will
also be revised.” The government also underscored an urgent need to restructure
state-run enterprises, as many of which were holding many state assets, but
were unable to operate efficiently.
For example, it was reported that during this
year’s first eight months, Electricity of Vietnam’s losses were $562.5 million,
Vinashin $148.6 million, Petrolimex $57.6 million and Vinalines $29.4 million.
“We will comprehensively and thoroughly revise
state-run groups and corporations’ operations and effectiveness. Their
operational results must be publicized. We will also continue renewing and
equitising these firms, while withdrawing state capital at already equitised
ones not controlled by the state,” Dung said.
Restructuring of the country’s financial
markets, particularly commercial banks will also an imperative task for the
government until 2015. “We will gradually limit the mobilisation of capital
from banks, but from other more effective channels like the stock market and
financial institutions. The quantity of banks will be trimmed,” the premier
said.
Thien said Vietnam had about 100 commercial
banks, many of which, were managed and answered to state-run groups and
corporations. “It is quite irrational when these banks don’t serve private
enterprises,” he said. National Assembly chairman Nguyen Sinh Hung underscored
that big efforts must be made to effectively implement these measures.
The government reported that its prime
priorities for 2012 would be to curb inflation, stabilise the macroeconomy and
keep reasonable economic growth closely pertaining to economic restructuring.
The overall economic target for 2011-2015 will be “stable and rapid economic
development in association with growth model renewal and economic restructuring
in a way that economic quality, effectiveness and competitiveness will be
improved.”
Particularly, in 2011 and 2012, bridling
inflation and keeping reasonable economic growth are stressed to create a firm
foundation for the economy to develop more stably from 2013. The gross domestic
product is expected to rise 6-6.5 per cent in 2012 and by 6.5-7 per cent on
average during 2011-2015.
Thanh Tung | vir.com.vn
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