Vietnam needs stronger and more effective measures to create abreakthrough in the complex and long-term process of economicrestructuring, according to various domestic experts.
A major economic restructuring project approved by the Prime MinisterNguyen Tan Dung, in combination with a shift in the national growthmodel, has reaped initially significant outcomes after years ofimplementation.
At a recent forum themed “GrowthRecovery and Economic Restructuring: Opportunities and Challenges” inHanoi, many experts argued that vital economic reform must focus onthree pillars: public investment, State-owned corporations and creditinstitutions. However, the economic restructuring process has beenslower and generated fewer results than expected.
According to the Central Institute for Economic Management (CIEM ) , despite the lack of a significant breakthrough, therestructuring of public investment has obtained some encouragingachievements. Specifically, public investment made up around 30 percentof last year’s GDP growth, a 9 percent drop from the average figure inthe 2006-2010 period.
Public investment’scontribution to the total social investment also fell to 37 percent inthe first nine months of 2013 compared to the average level of 51.8percent between 2001 and 2005.
However, investmentrestructuring has only addressed short-term issues such as unbalancedand asynchronous investment, but has not yet created a legal frameworkto heighten the effectiveness of managing and using the publicinvestment in the coming time, CIEM Deputy Director Nguyen Dinh Cungsaid.
Other economic specialists asserted there hasbeen no evidence of shifting investment from the public to privatesector, adding that the restructuring of State-owned enterprises (SOEs)has not yet reached the required outcomes because their equitisation anddivestment were slower than planned.
Cung alsonoted, in the process of divestment innovative, thoughts and marketmechanisms should be utilised to redistribute the resources of severalSOEs.
Most experts in economics said it is necessaryto apply several principles of market and administration in the SOEsrestructuring.
Besides, State-owned corporations andgroups should improve the transparency of financial information in themanner that joint stock firms do.
Several expertssaid it is vital to hasten equitisation and divestment from non-corebusinesses of the State-owned companies as privatisation will put a moremarket pressure on them to use and manage their capital assets moreeffectively and create more economic value added.
Moreover, focal points should be placed on restructuring creditinstitutions and commercial banks, tackling bad debts and dealing withcross ownership in banking.
Solutions to bad debts should be taken in a more sufficient and comprehensive
manner to ensure a beneficial balance between banks and enterprises.
Many asserted that the restructuring only centres on theaforementioned three pillars while attention to the restructuring of theeconomic region and business sector has not been paid.
Particularly, solutions on recovering the private and agriculturalsectors, the two driving forces of national growth, and adjustingpolicies to enhance the quality of FDI were asked to be considered.These measures play crucial roles in quickening economic recovery, asthey pressurise the restructuring of SOEs, commercial banks and publicinvestment.
In hastening the economic restructuring,CIEM Deputy Director Tran Kim Chung suggested that it is necessary tointensify the role in supervising public investment and auditinginvestment projects of stakeholders such as the National Assembly,people, and social organisations.
Addressing lastDecember’s Vietnam Development Partnership Forum (VDPF), Prime MinisterNguyen Tan Dung said Vietnam will continue to reform its bankingsystem by privatising State-owned banks, selling shares of four amongfive equitised banks between 2014 and 2015.
Regarding SOEs, the country will step up restructuring, equitising andfocusing on core businesses, with a view to stopping their investment innon-core businesses in two years. Five hundred SOEs are expected to beprivatised by 2015 and the remaining 600 SOEs will be equitised insubsequent years, added PM Dung.-VNA
A major economic restructuring project approved by the Prime MinisterNguyen Tan Dung, in combination with a shift in the national growthmodel, has reaped initially significant outcomes after years ofimplementation.
At a recent forum themed “GrowthRecovery and Economic Restructuring: Opportunities and Challenges” inHanoi, many experts argued that vital economic reform must focus onthree pillars: public investment, State-owned corporations and creditinstitutions. However, the economic restructuring process has beenslower and generated fewer results than expected.
According to the Central Institute for Economic Management (CIEM ) , despite the lack of a significant breakthrough, therestructuring of public investment has obtained some encouragingachievements. Specifically, public investment made up around 30 percentof last year’s GDP growth, a 9 percent drop from the average figure inthe 2006-2010 period.
Public investment’scontribution to the total social investment also fell to 37 percent inthe first nine months of 2013 compared to the average level of 51.8percent between 2001 and 2005.
However, investmentrestructuring has only addressed short-term issues such as unbalancedand asynchronous investment, but has not yet created a legal frameworkto heighten the effectiveness of managing and using the publicinvestment in the coming time, CIEM Deputy Director Nguyen Dinh Cungsaid.
Other economic specialists asserted there hasbeen no evidence of shifting investment from the public to privatesector, adding that the restructuring of State-owned enterprises (SOEs)has not yet reached the required outcomes because their equitisation anddivestment were slower than planned.
Cung alsonoted, in the process of divestment innovative, thoughts and marketmechanisms should be utilised to redistribute the resources of severalSOEs.
Most experts in economics said it is necessaryto apply several principles of market and administration in the SOEsrestructuring.
Besides, State-owned corporations andgroups should improve the transparency of financial information in themanner that joint stock firms do.
Several expertssaid it is vital to hasten equitisation and divestment from non-corebusinesses of the State-owned companies as privatisation will put a moremarket pressure on them to use and manage their capital assets moreeffectively and create more economic value added.
Moreover, focal points should be placed on restructuring creditinstitutions and commercial banks, tackling bad debts and dealing withcross ownership in banking.
Solutions to bad debts should be taken in a more sufficient and comprehensive
manner to ensure a beneficial balance between banks and enterprises.
Many asserted that the restructuring only centres on theaforementioned three pillars while attention to the restructuring of theeconomic region and business sector has not been paid.
Particularly, solutions on recovering the private and agriculturalsectors, the two driving forces of national growth, and adjustingpolicies to enhance the quality of FDI were asked to be considered.These measures play crucial roles in quickening economic recovery, asthey pressurise the restructuring of SOEs, commercial banks and publicinvestment.
In hastening the economic restructuring,CIEM Deputy Director Tran Kim Chung suggested that it is necessary tointensify the role in supervising public investment and auditinginvestment projects of stakeholders such as the National Assembly,people, and social organisations.
Addressing lastDecember’s Vietnam Development Partnership Forum (VDPF), Prime MinisterNguyen Tan Dung said Vietnam will continue to reform its bankingsystem by privatising State-owned banks, selling shares of four amongfive equitised banks between 2014 and 2015.
Regarding SOEs, the country will step up restructuring, equitising andfocusing on core businesses, with a view to stopping their investment innon-core businesses in two years. Five hundred SOEs are expected to beprivatised by 2015 and the remaining 600 SOEs will be equitised insubsequent years, added PM Dung.-VNA
