More drastic measures are required to revive businesses

(VOVworld) - The just-concluded 2012 Spring Economic Forum focused on examining solutions and a detailed roadmap for restructuring the national economy. Overall assessments, analyses, and proposals by the researchers and economists who attended the forum will be summarized and submitted to the National Assembly. This will help the Government restructure to stabilize the marco-economy and ensure sustainable growth.

Vietnam’s GDP growth in the first quarter is forecast to be 4%, much lower than the previous year. With the global economic downturn, foreign direct investment in Vietnam has declined, real estate and securities markets have been less active, and a large number of businesses have shut down. In such circumstances, most participants at the conference agreed the economy should be restructured with focus on State owned businesses, public investment, and the commercial banking system. Economists say inflation control and marco-economic stabilization should be high priorities from now until 2015. Dr. Tran Dinh Thien, Director of Vietnam's Institute of Economics, says 'More drastic measures should be outlined to revive businesses. Although the inflation rate has been lowered to 8.9% from last year’s 18%,it is even more important that the interest rate needs to be reduced to a level that can help enterprises recover. Our final target is to restore as many businesses as we can'.

Thien says Vietnam needs a strong action plan and the immediate task is to restructure State owned businesses, public investment, and the commercial banking system. Under the Prime Minister’s directive, ministries should complete a plan to overhaul 12 economic groups by the end of this year or the first quarter of next year at the latest. To that end, synchronized measures are required, particularly ensuring transparency in both state management and business production. Doctor Cao Sy Kiem, a member of the National Monetary Policy Consulting Committee, has this to say 'The restructuring of state-owned businesses, public investment and financial and monetary system must be considered equally important. We need to work out a roadmap so that they can be implemented synchronously'.

The Ministry of Planning and Investment has completed a plan to restructure the economy in combination with adapting the national growth model to improve efficiency, productivity, and competitiveness in the next 5 years with a vision until 2020.