Viet
Nam should not delay its economic restructuring process, in combination with
the renewed growth model, and should focus on three key tasks–reinvestment,
restructuring businesses and the financial market, said Viet Nam Deputy Prime
Minister Vu Van Ninh.
Ninh made the statement at a conference on
World Economic Outlook and Viet Nam's Response Policy, jointly organised by the
World Bank, the National Financial Supervisory Commission and the Viet Nam
Institute of Social Sciences, in Ha Noi Tuesday.
Ninh said the world economic downturn had
affected Viet Nam since 2008 and the country had faced difficulties of high
inflation, large trade deficit and high interest rates, despite encouraging
results from the government's policies.
"The Government has set a yearly growth
rate of 7-7.5 per cent in the five-year period of 2012-15. The target would be
reduced to 6-6.5 per cent per year to give priority to curbing inflation,
stabilising the macroeconomy and retaining a suitable growth rate," he
said.
The restructure should be focused on
State-owned enterprises, especially groups and corporations, in parallel with
financial markets, including the banking system and financial institutions, by
reducing their quantity and increasing scale and quality.
World Bank country director in Viet Nam
Victoria Kwakwa said economies in the world had loosened competitiveness in the
production sector, resulting in job shortages.
She said Resolution 11 on curbing inflation
and stablising the economy had helped Viet Nam improve its macroeconomy.
However, restructuring would negatively affect the economy and limit
competitiveness for a long time.
"Viet Nam has to reduce the rate of growth
due to imbalanced development," Viet Nam Institute of Social Sciences
chairman Nguyen Xuan Thang said.
Thang said the bankruptcy of 48,700 businesses
indicated it was time to review the growth model.
He suggested evaluating and analysing the
effects of the world economy on Viet Nam while clarifying the existing model.
Deepak Mishra, World Bank lead economist in
Viet Nam, said capital flows to developing countries reduced by 20 per cent in
July and the current fiscal position of most developing countries was worse
than in 2007.
"Drivers of Viet Nam's macroeconomic
instability were structural in nature. The country should have a strong push to
make its budget more transparent, especially in the execution of State capital
budget and the inclusion of off-budget items," he said.
He added that Viet Nam should also adopt
modern public investment management practices to identify, execute and
monitoring Government projects.
ADB country economist Dominic Patrick Mellor
said finance sector development was needed to mobilise infrastructure
resourcing.
Head of the Ministry of Planning and
Investment's Central Institute for Economic Management Le Xuan Ba said
investment should be restructured to increase the quality of economic growth,
macroeconomic stability and inflation control.
"The core element of restructuring
investment under current conditions was the restructuring of public investments
and, more especially, the tightening of the authorisation of investment
administration," Ba said.
Business Desk
Viet Nam News
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