DA NANG — Viet Nam had to dramatically restructure the economy to overcome the ongoing crisis, director of the Viet Nam Economics Institute Tran Dinh Thien said at the opening of the Viet Nam Investment and Banking Conference here yesterday.
Thien, who is a member of the National Monetary Consultancy Council, said the country should restructure a series of sectors, including public investment, the commercial banking system and State-owned businesses and groups.
"I think the Government will strongly regroup State-owned businesses and groups in two or three years as well as set up mechanism to better control the economy," Thien said.
"State-owned enterprises have been given too many priorities and funds, which created huge risks when they failed," he said.
Thien said economists had suggested the Government strictly control State-owned groups. For example, he said there must be a tight ruling to deter the groups from pouring money into fields outside their core lines of business.
In the past, the Government allowed groups to invest 30 per cent of their capital in non-core industries.
The Viet Nam Shipbuilding Industry Group (Vinashin), which widely invested in finance, thermo-power plants, insurance and steel outside shipbuilding, is now heavily indebted.
The two-day conference has drawn more than 200 entrepreneurs and representatives of domestic and foreign banks and finance agencies. — VNS