Vietnam steps up bank, state firm reforms in economic roadmap
HANOI: Vietnam has approved a broad plan to boost its economy to 2020, focusing on restructuring public investment, banks and state- owned enterprises while controlling inflation and maintaining growth.
The Southeast Asian nation's economic growth fell to a 13-year low of 5.03 per cent last year as reduced consumer demand piled up inventory at many firms, forcing many into bankruptcy, further adding to banks' bad debt problems.
The master plan aimed for a prudent monetary policy to tame inflation while ensuring ‘ reasonable growth', Prime Minister Nguyen Tan Dung said in a 29-page directive signed on February 19, and seen by Reuters. The plan took effect immediately.
Vietnam plans to restructure financial markets and consolidate state- owned businesses and investment but critics worry that, given entrenched interests and opaque decision-making, getting concrete results might prove difficult.
“The approved economic restructuring plan is the combination of what has already been stated and it may be a concrete step in the restructuring of each sector,” said economist Dinh Tuan Minh at Hanoi-based Military Bank.
“However, I do not see any breakthrough in the plans to restructure the banking system and public investment,” Minh said. Investors wanted to see how
The approved economic restructuring plan is the combination of what has already been stated and it may be a concrete step in the restructuring of each sector. Dinh Tuan Minh, Hanoi-based Military Bank economist
the plan would be implemented, a Vietnamese financial expert in Ho Chi Minh City said.
Vietnam stocks were up 0.2 per cent at 6.50am, after the central bank reaffirmed it would keep the dollar/dong exchange rate stable and on news that the government had approved a plan to boost the economy. Vietnam would be conducting tight fiscal policy, promote exports and strictly control imports while boosting domestic production of consumer goods, the directive said.
Financial experts have proposed that the central bank devalue the dong currency by up to four per cent to support exports, but the central bank said it was not considering any such plans at present. — Reuters