Flexible policies needed to cope with economic turbulences

Hanoi (VNA) – Competent authorities should give top priority to stabilising the macro-economy and applying flexible macro-economic policies to cope with disadvantageous developments of the regional and world economies, heard a seminar held by the Central Institute for Economic Management (CIEM) in Hanoi on July 12.

CIEM forecast Vietnam’s economic growth at 6.82 percent, export expansion at 8.02 percent, and average inflation rate at 3.38 percent for the whole year 2019.

Director of the CIEM’s General Research Department Nguyen Anh Duong suggested stepping up the restructuring of the economy and sectors to accelerate economic growth and improve growth quality so as to strengthen economic resilience amid the unpredicted developments of the global economy and trade.

Other experts said the Government should promote the shake-up, equitisation and divestment at state-owned enterprises (SOEs); have transparent and specific plans using capital raised from divestment; and publicise SOEs with tardy progress of equitisation, listing and divestment.

At the same time, it is necessary for competent ministries and sectors to keep a close watch, and carry out proper evaluation on the investment capital to control hot money flows, concretise orientations for foreign investment attraction, while encouraging foreign investors to promote technology transfer based on international laws, they said.

According to Duong, there are several shortcomings in the reform and policy implementation in the first half of the year. Efforts to promote international economic integration has not been well reflected in the legal frameworks like tax policies while preparations for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) remained tardy although the pact has already come into force.

If there is no change, like the CPTPP, we would take advantage of the EU-Vietnam Free Trade Agreement (EVFTA) slowly, he said.

CIEM said that the macro-economy in the last six months of the year could be impacted by global economic recession and increasing trade tensions. Besides, Vietnamese exports will be hampered by trade defence lawsuits and investigations to prevent tax frauds, and origin frauds, among others.-VNA