The 2.9 million USD initiative "Restructuring for a More Competitive Vietnam” (RCV), recently launched by the Australian government, is looking to forge a level playing field for all economic sectors.
The two-year initiative comes as Vietnam is on its course of economic restructuring but stuck in decreasing growth and high inflation, said Deputy Minister of Planning and Investment Dang Huy Dong. He also admitted that macro economic instability has emerged as a concern during recent years, as seen in high levels of public and foreign debts, and the rise in non-performing loans.
Director of the Central Institute of Economic Management (CIEM) Nguyen Dinh Cung ascribed the slow economic restructuring to the so-called “interest groups”, including the State-owned firms that take advantage of their economic privileges to manipulate the market.
Trinh Anh Tuan, Deputy Director of the Department of Competition Management under the Ministry of Industry and Trade, cited the example of the telecommunication market, which clearly showed that when monopoly was abolished, enterprises were forced to restructure themselves in order to survive, while consumers benefitted from the competition on the market.
Raymond Mallon, RCV senior advisor said the project will help improve the economy’s competitiveness as well as transparency, thus reducing corruption.
Cung said CIEM will suggest ways to strengthen State firms economically and improve their corporate governance skills.
The Law on Enterprises, once it is adopted, is expected to create a fair environment for all economic sectors and businesses will see much room for growth, he said.-VNA
The two-year initiative comes as Vietnam is on its course of economic restructuring but stuck in decreasing growth and high inflation, said Deputy Minister of Planning and Investment Dang Huy Dong. He also admitted that macro economic instability has emerged as a concern during recent years, as seen in high levels of public and foreign debts, and the rise in non-performing loans.
Director of the Central Institute of Economic Management (CIEM) Nguyen Dinh Cung ascribed the slow economic restructuring to the so-called “interest groups”, including the State-owned firms that take advantage of their economic privileges to manipulate the market.
Trinh Anh Tuan, Deputy Director of the Department of Competition Management under the Ministry of Industry and Trade, cited the example of the telecommunication market, which clearly showed that when monopoly was abolished, enterprises were forced to restructure themselves in order to survive, while consumers benefitted from the competition on the market.
Raymond Mallon, RCV senior advisor said the project will help improve the economy’s competitiveness as well as transparency, thus reducing corruption.
Cung said CIEM will suggest ways to strengthen State firms economically and improve their corporate governance skills.
The Law on Enterprises, once it is adopted, is expected to create a fair environment for all economic sectors and businesses will see much room for growth, he said.-VNA
