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Economic restructuring discussed in Hanoi

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Restructuring investment mechanisms is a key to restructuring the economy, according to a seminar in Hanoi on Oct. 18.

Addressing the seminar on the global economy and Vietnam’s economic policies held in Hanoi on Oct. 18, Deputy Prime Minister Vu Van Ninh said that global economic recession has left a strong impact on Vietnam since 2008.

Although measures and policies have been carried out, Vietnam still faces a high inflation as well as high interest rates.

He emphasised the necessity to restructure the economy in combination with the renewal of growth models focusing on the restructuring of investment mechanisms, equitisation of businesses and financial market restructuring.

Participants pointed out an imbalance in the current investment mechanisms
and the “illogical” structure of economic sectors.

They said that restructuring investment mechanisms must include the elimination of ineffective projects and reorganisation of unsuitable projects.

The seminar mentioned the issuance of the law on public investment under which public investment should be focused on national and inter-regional projects.

According to the Central Institute for Economics Management (CIEM), the State economic sector received 60 percent of the total investment in the 1995-2010 period, much higher than its proportion in the national GDP. Meanwhile, the non-State sector received only between one-fifth to one-third of the investment flow./.
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