Pham Chi Lan, deputy head of the Institute of Development Studies (IDS), said Vietnam is now stepping into a new development stage which should mostly rely on internal forces and use effectively external forces.

“The country should develop new growth model with two basic cores, quality, effectiveness, productivity, and added value in global connection chain on one hand, and a more market-driven resource management mechanism by eliminating monopoly and privileges,” said Lan.

She suggested the Government put State-owned corporations in a level-playing competitive market, create convenient environment for the private sector to develop, and continue to attract foreign direct and indirect investments but with a focus on new technology.

Truong Dinh Tuyen, former minister of Trade, said that the crisis had exposed the need to restructure the economy.

“The Government has entrusted the Ministry of Planning and Investment to prepare a restructuring project, with key goals of restructuring the economy, enterprises, and manufacturing sectors, and revising the market development strategy,” he said.

Sharing Lan’s view, he also said the Government should create an equitable competitive environment for both State-owned and private enterprises.

Regarding the attraction of foreign investment, Tuyen said the Government should target hi-tech sectors with high added value, and reject polluting projects.

While agreeing that export remains a major driver for Vietnam’s economy, Tuyen urged the Government to pay more attention to domestic market for the time being.

In his presentation at the conference, Vu Thanh Tu Anh, research director of Fulbright Economics Teaching Program, said that despite Vietnam’s positive economic growth in the first half of this year, the crisis has adversely impacted the country, and huge challenges are waiting ahead that require even greater efforts.

Vietnam posted the 3.9% growth in January-June but that growth was unsustainable and the trend may change its course anytime if the global economy turned turbulent.

“Vietnam’s gross domestic products increased by 3.9% in the first six months of the year but its potential growth should be 9%-10%. This means the global crisis has cut the potential growth by five to six percentage points, which is similar elsewhere in the world,” he said.

Citing figures from the General Statistic Office, Anh said consumer spending fell 3.5% year-on-year in the first half. Meanwhile, the private sector investment in the economy decreased 14% also in the first six months of the year, although the economic stimulus package is aimed to stimulate consumption and investment in the country.

(Source: Saigon Times Daily)