Rationalising State-owned enterprises and the financial sector is key torestructuring the country's economy, according to leading Vietnameseeconomists.
During the two-day Spring Economics Forum,which took place in the central Da Nang City on Apr. 8-9, topeconomists expressed their views about the long-term targets fornational economic stability.
State-owned enterprises, investments and financial and monetary systems are key areas that need to be addressed, they said.
One consensus arrived at after the two-day meeting was that the keyfactors for economic restructuring – the main task for this year –should be State-run groups and corporations and public investments alongwith commercial banks and credit institutions.
"Key areasof business should coordinate to facilitate a smooth development of theeconomy," said Cao Sy Kiem, chairman of the Vietnam Association ofSMEs.
Tran Dinh Thien, director of Vietnam 's Instituteof Economics , said that this year's growth would be unlikely tomatch that of previous years.
Experts affirmed thatcontrolling inflation and the general stabilisation of the economy arestill priorities for the strategy through to 2015, though they mightplay a lesser role than what was previously thought.
Previously, Thien said, growth was the priority in economic plans. Butnow, restructuring shouldn't stop with cutting back on publicinvestments and equitising State-run enterprises, but should activelyrespond to demand in international markets as well as the nation'snatural resources.
He stressed the necessity to reformwages and budget systems in the State-run sector, as well as to speed uprevision of the Land Law, which, he said, lagged behind currentpractices.
"We can't stop ineffective investments withoutfocus if we continue to allocate the State budget and devolve investmentmanagement like we do at present," said Tran Du Lich, deputy head ofthe National Assembly member delegation from HCM City .
Nguyen Dinh Cung from the Central Institute for Economic Managementagreed, saying that changes should be made in both the businessenvironment and firms' internal management systems in order to improveresource utilisation as well as operating efficiency in State-ownedenterprises.
National Assembly Economics Committee vicechairman Nguyen Duc Kien said that in order to generate breakthroughs insocio-economic development, an important issue is to mobilise thestrength and resources of all economic sectors.
Meanwhile,Thien said economic difficulties, particularly the slowdown inproduction and prolonged high inflation and interest rates, had had aconsiderable negative effect on the business environment.
He quoted a recent Ministry of Planning and Investment report whichpointed out that, from the beginning of this year to March 21 around2,200 companies dissolved and over 9,700 others had not paid taxes orceased operations altogether.
The combined number ofbusinesses that had to stop operations was up 6 percent from last year,he said, adding that this trend would be likely to continue as long asinterest rates remained high.
Thien also suggested thatthe development of key coastal economic zones, including Quang Ninh, DaNang-Chan May, Phu Quoc and Vung Tau, should be prioritised.-VNA
The forum was co-organised by the National Assembly's EconomicsCommittee, the Vietnam Academy of Social Science and the Vietnam Chamberof Commerce and Industry.
The Government is scheduled tosubmit a general economic restructuring scheme to the National Assemblyat the 3rd parliament meeting session, slated for next month.