Vietnam’s economy eyes many risks

Although showing signs of recovery through Gross Domestic Product (GDP) Growth rate, Vietnam’s economy was still facing a lot of risks, said head of Vietnam Institute of Economics Tran Dinh Thien in Ho Chi Minh City yesterday.

Electronic component production at Japanese Nidec Company in Saigon Hi-Tech Park (Photo: SGGP)

Speaking at a seminar on risks from economic restructuring and development, Mr. Thien said that the country’s economic restructuring has brought limited results.

GDP growth rate shows that the economy has recovered but does not fully reflected the economy’s nature, meaning it is just a bit better, he added.

Economist expert Vo Dai Luoc from the Vietnam Asia-Pacific Economic Center agreed that Vietnam’s economic restructuring would meet with a lot of risks and barriers such as slow institutional reform, complicated administrative procedures...

Experts at the seminar said that the key solution for the Vietnam’s economy is to reform growth modals basing on productivity and effectiveness and improve competitiveness.

Most delegates affirmed that private sector always play a basic role deciding internal resource for development in all modern market economies. The implementation of polices for the development of this sector should be sped up to increase the internal strength of Vietnam’s economy.

At the seminar, experts focused on discussing economic restructuring and state-own enterprises (SOEs) equitization.

According to statistics by the end of last October, the country had equitized 143 SOEs, far behind the plan of 432 businesses in the period of 2014-2015.

Government’s reports showed that parent companies of SOEs still invested VND957 billion in the stock market, VND549 billion in investment funds, VND1,498 billion in insurance, VND16,101 billion in banking and finance, and VND13,176 billion in real estate field at the end of 2013.

State-own groups and corporations have withdrawn VND4.4 trillion out of VND21 trillion in 2013 and the first ten months of 2014. According to plan the capital withdrawal will reach VND16,367 billion this year, which experts said a big challenge.

By Nhung Nguyen – Translated by Hai Mien

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