National Assembly of Vietnam Chairman Nguyen Sinh Hung speaks at the seventh session of the National Assembly Standing Committee
(VEN) - On April 19, the National Assembly Standing Committee reviewed the most complex proposal focusing on Vietnamese economic restructuring in association with paradigm shift in the drive toward higher efficiency, capacity and competitiveness of the economy in the 2011-2015 period, with a vision to 2020.
The proposal includes a range of sectors, such as credit system, stock market, state-owned businesses and economic regions.
Central Institute for Economic Management deputy director Nguyen Dinh Cung, one of the main composers said that the overall goal of the proposal is resource reallocation to boost efficiency, capacity and competitiveness of the economy.
The proposal suggests 13 solution groups, including two special groups to better the macroeconomic environment in order to create foundations for economic restructuring. The first special solution group emphasizes the need to achieve the macroeconomic targets in a stable and sustainable way. In addition, the commercial banking system needs to be restructured to create a stable financial market, facilitating resource reallocation. The second special solution group is to further improve the business environment in order to offer a fair business environment for all economic sectors.
Nguyen Dinh Cung admitted that the proposal is very complicated as it affects many interest groups in the economy. "The biggest challenge to economic restructuring is that it is unknown how much it will cost. Restructuring aimed at resource reallocation will create a stagnant growth period as an exchange. Shall the Government accept an exchange?" Cung said.
Ministry of Planning and Investment, the agency in charge of mapping out the proposal, permanent deputy minister Cao Viet Sinh said that to carry out the proposal, it is necessary to find a general consensus, but all seem to be bystanders. He noted that the current unstable macro-economy is unfavorable for economic restructuring. "Our macro-economic environment is still risky. Restructuring cannot happen in a couple days but it will take time," he said.
He said it is necessary to restructure but will not cause any major disturbance to the society. Therefore, the Ministry of Planning and Investment is still afraid of publicizing the proposal.
The Ministry of Planning and Investment is assigned to carry out the economic restructuring proposal by the Government with the main objectives of clarifying the key points, directions and solutions to restructure sectors, adjust market strategy, increase the domestic value and added value and the competitiveness of products, businesses and the economy in the 2011-2020 period.
The proposal consists of four parts, from the evaluation of the achievements and limitations of the Vietnam's economy to the identification of general objectives and solution systems. The economic sectors having rapidly changing technology will be restructured quickly.
Proposal to restructure Vietnamese economy was set out in the meetings in 2008 and 2009 when the global economic crisis was taking place. After that, the Government had assigned the Ministry of Planning and Investment to sponsor and report. The draft of this proposal completed by the Ministry of Planning and Investment on March 28 will be discussed at the next parliamentary session./.
By Thu Hang