Re­port fu­els growth con­cerns

Viet Nam News - - FRONT PAGE - .— VNS

— The coun­try’s max­i­mum eco­nomic growth would be 5.35 per cent this year, ac­cord­ing

to the Vieät Nam An­nual Eco­nomic

Re­port 2013 that was un­veiled in the cap­i­tal yes­ter­day.

The re­port, com­piled by the Vieät Nam Cen­tre for Eco­nomic Pol­icy Re­search (VEPR), said the coun­try’s eco­nomic growth this year would go two ways. In the first sce­nario, eco­nomic growth would hit 5.04 per cent if in­fla­tion was 4.95 per cent and in the sec­ond, if in­fla­tion reached 6.64 per cent, eco­nomic growth would reach 5.35 per cent.

The doc­u­ment re­flects con­cerns about the coun­try ’ s eco­nomic re­struc­tur­ing that has slowed down in com­par­i­son to two years ago. It also men­tioned op­por­tu­ni­ties that Vieät Nam could miss if re­forms were not taken.

It shows that Vieät Nam hasn’t com­pre­hen­sively cap­i­talised on in­ter­na­tional in­te­gra­tion. Af­ter six years as a mem­ber of the World Trade Or­gan­i­sa­tion, the coun­try’s econ­omy reached a growth rate of only roughly 5.8 per cent...

... on aver­age against the aver­age rate of 7.8 per cent in the pre­vi­ous six-year pe­riod from 2002 to 2007. In­fla­tion from 2002-07 was also only 7.35 per cent against 11.5 per cent from 2008-13.

“Viet Nam missed many op­por­tu­ni­ties to gain eco­nomic growth through re­struc­tur­ing the econ­omy,” the re­port wrote.

It also sug­gested that the coun­try’s eco­nomic model should be scru­ti­nised to form a new model.

Vie t Nam would miss the op­por­tu­nity to progress on a smooth path if a new eco­nomic model and suit­able sup­port­ing poli­cies were not taken, the re­port states.

Nguye n c Tha nh, di­rec­tor cum chief econ­o­mist of the VEPR, said that Vie t Nam’s econ­omy was like a heavy car­riage’ on a bumpy road.

Ac­cord­ing to the re­port, Vie t Nam needs to deal with short- and medium- term is­sues in­clud­ing non-per­form­ing loans in the bank­ing sys­tem, the frozen real es­tate mar­ket and dif­fi­cul­ties fac­ing en­ter­prises.

The re­port also men­tioned long-term mea­sures to boost the econ­omy, in­clud­ing im­prov­ing the busi­ness en­vi­ron­ment and re­viv­ing in­vestors and pub­lic con­fi­dence as well as re­duc­ing ad­min­is­tra­tive mea­sures and State in­ter­ven­tion in eco­nomic ex­e­cu­tion.

Chair­man of the National Fi­nan­cial Su­per­vi­sory Com­mis­sion Vu Vie t Ngoa n said that the re­port was a prac­ti­cal re­flec­tion of the coun­try’s econ­omy.

Ngoan said that he agreed with the rec­om­men­da­tions made in the re­port that both short- and long-term mea­sures should be com­bined.

Econ­o­mist Le a ng Doanh sug­gested that the re­port should con­sider more care­fully pub­lic debt in the Euro­pean Union and the EU’s mea­sur­ers to deal with the cri­sis, ex­plain­ing that those lessons could be ap­plied in Vie t Nam.

This is the fifth year the VEPR has pub­lished the n n ono o

— VNA/VNS Photo Huy Huøng

A worker puts more fuel into a steel fur­nace in Hoøa Phaùt Steel Joint Stock Com­pany. The Vieät Nam An­nual Eco­nomic Re­port 2013 un­veiled yes­ter­day that the national max­i­mum eco­nomic growth could be 5.35 per cent this year.

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