Vietnam - Experts urge new growth models

Infrastructure for urban and industrial zones and universities need to be planned in a more co-ordinated manner at regional levels, says the former director of the Institute for World Economics and Politics, Vo Dai Luoc.

At a workshop on restructuring public investment held in Hanoi on May 3, Luoc emphasized the need for more public investment in areas which offer economic advantages and strong potential to generate returns.

For example, the Hanoi-Hai Phong and HCM City-Vung Tau economic corridors lack good highway and express rail connections as 80 percent of the country’s total industrial transport depends on them, he said.

So, the Government needs to build its laws on public spending up to international standards and norms, including those concerning tendering, construction, State budget, land use rights and anti-corruption, he added.

Vietnam Institute of Economics director Tran Dinh Thien agreed, that economic restructuring means restructuring of sectors, regions and institutions for the benefit of resource distribution.

Vietnam has huge potential for developing but its economic growth remains imbalanced because of inflation, Thien said.

“There must be a new growth model based on the pillars of high technology, skilled labour and international associations to ensure Vietnamese businesses effectively participate in the global value chain.”

Currently, Vietnam has more than 100 banks, hundreds of financial and stock companies, 100 seaports, 18 economic zones, 30 border economic zones, 280 industrial zones and 650 industrial clusters, as well as 233 universities and colleges, and its GDP is estimated at US$130 billion, Thien said.

By any standard, the distribution of resources suggests enormous amounts of duplication and waste, he added.

Vu Tuan Anh from the Vietnam Institute of Economics urged a reduction in taxes to create a favourable environment for businesses to overcome the economic downturn, expand production and improve competitiveness.

VNA

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