Vietnam should recognise factors that affect its economy’s productivity and competitiveness to maintain high and sustainable growth (Photo: VNA) Hanoi (VNA) – Vietnam should recognise factorsthat affect its economy’s productivity and competitiveness to maintain high andsustainable growth, domestic and foreign experts have said.
They made the recommendation at a workshop inHanoi on December 13 that discussed research on Vietnam’s economy and growthdiagnostics.
The country’s economic growth reached 6.68percent in 2015 – a five-year high since 2011. This year’s GDP is expected to expand6.3 percent.
Presenting the research findings, RicardoHausmann – Director of Harvard University’s Centre for InternationalDevelopment – said there are three groups of bottleneck in Vietnam’s economicgrowth.
Short-term bottlenecks include the ineffectiveadministrative system, wastefulness, corruption, inappropriate land policies,and high financial costs. The mid-term ones are macro-economic andmicro-institutional risks. In the long term, bottlenecks lie in infrastructureand human resources issues.
The research says the State plays a key role inoutlining a vision for economic development, making flexible mechanisms andpolicies, and attracting and encouraging businesses’ participation to tacklebottlenecks.
Vietnam’s production potential is in hi-techindustries like machinery and electronics. The Government also needs to keepattention on traditional manufacturing and export sectors like agriculture,apparel, footwear and mining, but should diversify products and prioritise oneswith high added value, according to the research.
Cao Duc Phat, deputy head of the Party CentralCommittee’s Commission for Economic Affairs, said Vietnam’s economic growthstill depends on natural resources exploitation, investment and cheap labour,instead of science-technology application or economic restructuring.
The economy is growing at a slower pace and withlower quality, he noted.
The research on Vietnam’s economy and growthdiagnostics was conducted by the Economic Commission and some domestic andforeign experts with the assistance of the US Agency for InternationalDevelopment.-VNA
VNA
