Domestic economists have urged the Government and relevant management agencies to employ drastic measures to overcome economic difficulties, such as bad debts and “frozen” property market, amid fears that lingering difficulties will lead to an unsustainable economic recovery in the years to come.

They made the recommendation at a conference in Hanoi on May 27 to debut the Vietnam Economy 2013 Report, an annual document providing an overview of the macro-economy over the past year, possible scenarios in the years to come and proposals for policy-makers.

The recommendation was based on concerns highlighted in the report that the national economy would likely experience a bumpy recovery in the years ahead if drastic solutions to restructure the economic growth model are not taken.

Prof. Nguyen Duc Thanh, Director of the Vietnam Centre for Economic and Policy Research and the chief author of the report, said that domestic economic competitiveness is poor.

Local companies have yet to make full use of opportunities created by the country’s integration into the World Trade Organisation, he added.

Therefore, speeding up economic reform is urgently needed, Thanh suggested.

Senior economist Le Dang Doanh recommended domestic enterprises swiftly transform their business thinking, which is based on exporting raw materials in exchange for the import of end products.

The report includes seven chapters and two appendices, encompassing an overview of the global economy and Vietnam’s economic performance in 2012, post-WTO inflation trends in Vietnam from 2006 to 2013, non-performing debts in the commercial bank system, international lessons and practical application to Vietnam, and Vietnam’s economic prospects and policy proposals in 2013.

The conference was held by the Hanoi-based National University Economics and Business Campus and the Vietnam Centre for Economic and Policy Research.-VNA