Workshop points out flaws in public investment restructuring
A number of shortcomings in restructuring Vietnam’s public investment
are hampering progress, participants in a workshop organised by the
Central Institute for Economic Management said in Hanoi on November 7.
A number of shortcomings in restructuring Vietnam’s public investment
are hampering progress, participants in a workshop organised by the
Central Institute for Economic Management said in Hanoi on November 7.
Prof. Dr Nguyen Quang Thai said the restructuring of public investment in Vietnam was falling short of expectations since there were no master plans for this endeavour.
Relevant policies were only revised on a short-term basis, and a complete legal framework is lacking.
For many years, Vietnam’s socio-economic development and investment plans were solely geared towards achieving rapid growth rates.With investments accounting for 40 percent of gross domestic product (GDP), the country only attained an annual maximum growth rate of 7 percent, Thai added.
Public investment has a greater impact on GDP growth than private and foreign direct investments, MA Pho Thi Kim Chi from the National Centre for Socio-economic Information and Forecasts under the Ministry of Planning and Investment said. She noted, however, that public investment only has short-term effects on Vietnam’s GDP growth.
In addition, the ratio of public investment in the national economy reduced from 8.5 percent of GDP in the 2006-2010 period to 6 percent in 2011-2013, according to Chi. The ratio of public investment in total social investment also decreased from 53.4 percent during 2006-2010 to around 40 percent in the 2011-2013 period.
During the workshop, the majority of participants agreed that it was necessary to associate the restructuring of public investment with restructuring the entire economy, and adapt investment policies to each sector and region.
They also highlighted the importance of private and FDI investments for upgrading infrastructure and the role of institutional reform in promoting the economy’s competitiveness.
Reorganising public investment is part of the economic restructuring process stipulated in the National Assembly’s Resolution No.10/2011/QH13 on the socio-economic development plan from 2011 to 2015. State-owned enterprises and the banking system are also being restructured.-VNA
Prof. Dr Nguyen Quang Thai said the restructuring of public investment in Vietnam was falling short of expectations since there were no master plans for this endeavour.
Relevant policies were only revised on a short-term basis, and a complete legal framework is lacking.
For many years, Vietnam’s socio-economic development and investment plans were solely geared towards achieving rapid growth rates.With investments accounting for 40 percent of gross domestic product (GDP), the country only attained an annual maximum growth rate of 7 percent, Thai added.
Public investment has a greater impact on GDP growth than private and foreign direct investments, MA Pho Thi Kim Chi from the National Centre for Socio-economic Information and Forecasts under the Ministry of Planning and Investment said. She noted, however, that public investment only has short-term effects on Vietnam’s GDP growth.
In addition, the ratio of public investment in the national economy reduced from 8.5 percent of GDP in the 2006-2010 period to 6 percent in 2011-2013, according to Chi. The ratio of public investment in total social investment also decreased from 53.4 percent during 2006-2010 to around 40 percent in the 2011-2013 period.
During the workshop, the majority of participants agreed that it was necessary to associate the restructuring of public investment with restructuring the entire economy, and adapt investment policies to each sector and region.
They also highlighted the importance of private and FDI investments for upgrading infrastructure and the role of institutional reform in promoting the economy’s competitiveness.
Reorganising public investment is part of the economic restructuring process stipulated in the National Assembly’s Resolution No.10/2011/QH13 on the socio-economic development plan from 2011 to 2015. State-owned enterprises and the banking system are also being restructured.-VNA
You should also see
China’s fishing ban in East Sea violates Vietnam’s sovereignty: spokesperson
Foreign Ministry spokesperson Pham Thu Hang on April 25 said Vietnam’s consistent stance on China’s fishing ban in the East Sea, which has been affirmed clearly over the past years.
See more
Business
April 25 gold bullion auction cancelled
The State Bank of Vietnam (SBV) has announced that it canceled the gold bullion auction scheduled for April 25 morning as only one business submitted its bidding form.
Business
High airfares create chance for short-distance trips for Reunification Day holiday
Due to a hike of air ticket prices for domestic flights, Vietnamese tourists are turning to short-distance trips for the upcoming National Reunification Day (April 30) and May Day (May 1) holidays.
Business
Phu Yen, Ninh Thuan attractive to energy project developers
The south-central coastal provinces of Phu Yen and Ninh Thuan have become attractive destinations for investors operating in the energy industry thanks to great potential for renewable energy development.
Business
Petrovietnam posts 9-billion-USD revenue in Q1
The Vietnam National Oil and Gas Group (Petrovietnam) saw total estimated revenue of 231 trillion VND (9 billion USD) from production and business activities in the first quarter of 2024, exceeding the set quarterly plan by 33% and up 19% year-on-year, head a conference held by the group recently.
Business
Forum seeks to increase PPP investment effectiveness
Investment cooperation in the public-private partnership (PPP) form is seen as a strategic option to mobilise private investment and improve public service delivery. However, the implementation of PPP projects in Vietnam still faces a lot of difficulties and obstacles, leading to a low number of successful projects and making the private economic sector cautious.
