Bui Tat Thang, PhD, director of the Development Strategy Institute, spoke with Dau Tu (Investment) newspaper about Viet Nam's macroeconomic requirements and preparations for future growth.
Macro-economic stabilisation and sustainable development have been considered the priority for economic growth in the years ahead. What is your opinion about this?
After 30 years of studying the nation's economic renewal, which has changed into a market economy, scientists and experts from the institute realised that the nation's economy faced large challenges – including macro-economic stabilisation and preparation for further growth in the upcoming years.
In the short period, the priority is to stabilise the economy to achieve further growth. But in the years ahead, the priority is to maintain economic growth to assure stability.
Viet Nam is among the lower middle-income countries in the world. Thus, it is vital to reach a certain rate of growth to avoid the middle-income trap and further lagging behind, when compared to other countries.
Economic stabilisation would help in setting up its growth rate. It would also reduce unfavourable economic shocks.
In the context of the current economy, what conditions are needed to reach these targets?
The results of economic restructuring are for most conditions, which would assure the success of reaching the targets.
It means that restructuring public investment must completely tackle bad debts.
Similarly, results of restructuring financing and banking must assure the transparency of banking systems, the circulation of the currency, the value of the Vietnamese dong, and exchange rate stability, as well as reduction of interest rates.
Restructuring State-owned enterprises must bring some success, such as properly reducing its role in the national economy and creating a fair and competitive environment.
There are many obstacles and difficulties to achieve economic restructuring, as you've mentioned above. What do you think about it?
During the time of researching some topics we were assigned, including deep studies on different viewpoints of development, we have found many obstacles.
A shortage of comprehension, co-operation and consistency in the management of the macro-economy and the overlapping and misuse of development planning, such as regional development planning, were among the large obstacles.
When Viet Nam tries to push its economic renewal comprehensively, these obstacles might become a big challenge. The target of achieving economic growth to maintain its stability, in my opinion, would require a breakthrough thinking to have a large strategy and economic policies to improve the competitive capabilities of regulations. It would bring macro-economic stability and improve people's living standards.
It might say that the contribution of the institute for the previous period of economic growth has been recognised. At this time, the economy needs new requirements and the institute will have to change to improve its ability and create new policies. — VNS