Vietnam’s
economy will undergo vigorous changes in this new year, with the initial stage
aimed at achieving the restructuring target, former Deputy Minister Vu Khoan
told Tuoi Tre
Mr Khoan said last year witnessed many
economic fluctuations, caused by both external and internal factors.
The drawbacks of the economy reached an
alarming state, which led to the necessity of a restructuring, he said.
Admitting the many positive results gained
from the economic growth model that Vietnam has been taking over the past few
years, Khoan pressed that the scheme has shown many shortcomings.
For instance, he said, the rich – poor gap has
widened, and growth has become unstable due to severe pollution.
“Moreover, the country’s economy has yet to be
able to stand on its own feet, instead relying too heavily on outside
assistance,” he said.
“Thus, we should improve these factors, in
order for the economy to grow in a more effective and sustainable way, enabling
it to proceed to a new step in the evolution ladder.”
The former deputy PM said the government last
year laid the stepping stones for the national economic restructuring, which is
expected to begin this year.
In 2011, the government assigned the Ministry
of Finance to develop plans for the state-owned enterprise restructuring, the
Ministry of Planning and Investment to restructure public spending, and the
State Bank of Vietnam to restructure the banking system.
“And this New Year will be the year of action
and hope, and the head of each ministry will be responsible for the appropriate
implementation of those plans,” he said.
Mr Khoan emphasized that the economic
restructuring will be a tough and lengthy process, with strong political
determination considered the most crucial factor to ensure success.
He said that it will be difficult to achieve
the restructuring targets if the government fails to issue effective policies,
and if relevant ministries and agencies are unable to reach agreement in processing
the plans.
With the economy currently operating according
to market forces, the public and businesses should be aware that the government
will not take care of everything, but the former will also have to take action.
For its part, the government should not only
issue directives. Instead, it should come out with economic measures such as
taxes, interest rates, and financial fines, for the public and businesses to
follow, the former deputy PM said.
With many provinces racing to develop
airports, seaports, and industrial parks in their localities, Mr Khoan said the
local authorities should change their mindset to curb this haphazard
investment.
Vietnam has 63 provinces, and it will be very
dangerous if each of these scrambles to build such facilities while their
financial and social abilities do not permit such projects.
“Such actions will lead to the country having
63 different economies, which are likely to conflict with each other,” he
explained.
“If a province has potential for agricultural
production, it is not advisable to establish an industrial park there.”
He added that the government should not set
fixed targets for economic development, since the global economy has constantly
fluctuated, and is unpredictable.
“What is the point of setting targets and
later changing them when the situation does not proceed as expected?” he said.
Mr Khoan added that the largest challenge for
Vietnam in the future is the fact that its economy will lag far behind the
development of its global counterpart.
“Even when we make positive changes, the world
has already gone much further,” he said.
“So, during the restructuring process,
especially that of the production restructuring, we should stay close to the
world development track in order to avoid going down the wrong path,” he
pressed.
In closing the talk with Tuoi Tre, the deputy
PM said what is most important now is whether Vietnam can successfully complete
the restructuring.
“Although it could take as long as five to ten
years for this place to succeed, I do hope that the national economy will begin
its vigorous change this year.
“Only with a comprehensive change and
restructuring can we continue our sustainable growth and evolution.”
TUOI TRE
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