Tuesday, August 21 2018


Seminar urges greater economic reform

Update: March, 02/2012 - 10:15

HA NOI — The Government has been urged to boost reforms to comprehensively restructure the economy, with experts making the call at a seminar in Ha Noi recently.

Vo Tri Thanh, deputy head of the Central Institute for Economic Management (CIEM), said that as this year was the year of reforms, there was a need for wise and careful management of the macro economy. However, he added that the Government should have flexible policies, especially currency policies, to support enterprises.

Experts at the seminar on Government management of the economy held by the Viet Nam Centre for Economic and Policy Research (VEPR) voiced several other concerns.

Le Dang Doanh, an economic expert, said that despite the Government's many flexible solutions to reform the economy, these solutions had not been strong enough.

"This year the Government must drastically restructure the economy," Doanh said. "Ministries and economic sectors should abolish bureaucracy and weaknesses while enterprises should also adjust markets and stop investments in weak sectors."

Nguyen Duc Thanh, VEPR director, said the restructuring of State-owned enterprises and public investment should be promoted further this year.

However, the work might not achieve significant results this year and continue in coming years due to inadequate plans or specific schedules for the restructuring, said Thanh.

According to Truong Dinh Tuyen, former Minister of Trade, the liquidity was the immediate priority for monetary policies.

"The money supply should be increased to ensure liquidity, to extend the time for refunding and to create conditions for enterprises to expand production and business," he said.

VEPR Thanh said liquidity in the banking sector was complicated and required a long-term solution because the main problems were bad debt and high interest rates, which hinder enterprises.

CIEM Thanh said some large banks had cut the interest rates of loans for enterprises but the rates had not been reduced by much and were still a challenge for many enterprises.

VEPR Thanh said it was difficult to further reduce the lending interest rate this year even thought inflation was expect to hit 10 per cent for 2012. — VNS

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