The Government’s endeavours in renovating institutions and bettering the legal system have been seen by some as decisive factors likely to support economic recovery in 2014 and beyond.

Economic experts at a workshop held in Ho Chi Minh City on February 21 shared the view that Vietnam’s economy will regain its growth in the next two years when businesses pin high hope on sustainable development.

Sandeep Mahajan, the World Bank’s Lead Economist for Vietnam, said the world economy still faces risks in 2014, but suggested developing countries will swiftly conduct reform of fiscal and monetary policies.

To spur growth and limit risks, Vietnam should heed the restructuring of financial and banking institutions with the involvement of the private sector, he advised.

However, according to Dr. Tran Du Lich, Vietnam will face short, mid and long-term challenges this year and further ahead, as the country’s low cost-based industry has lost its competitiveness during the process of regional and international integration.

In the 2012-2013 period, the country’s export revenue mainly depended on foreign direct investment (FDI) enterprises, he said, adding that the support industry – a key factor to raise local production and cut costs - has failed to fulfil its demands.

The agriculture sector, which holds a lot of promise due to the huge rural population , has not been fully tapped in the context of globalisation, he noted.

Therefore, the maintenance and restructure of the macro-economy is the main focuses of the Government’s policies in 2014 and next year, the workshop heard.

Participants at the event were unanimous that a cautious and flexible monetary policy should set a credit growth target of around 15 percent annually.

They highlighted the increase of the budget overspending cap to 5.3 percent of the gross domestic product (GDP) and the issuance of additional Government bonds worth 170 trillion VND (8.1 billion USD) in the 2014-16 period.

Such moves are expected to help Vietnam fulfil its growth targets of 5.8 percent in 2014 and about 6 percent in 2015, while curbing inflation at around 7 percent annually.

Dr. Le Xuan Nghia, Director of the Business Development Institute, said this year’s export growth in 2014 is expected to be the maintained or even increased compared to last year, with significant contributions made by local businesses.

More foreign investment will be poured into the country and the amount of disbursed capital will increase, he said.-VNA