Economic restructuring discussed in Hanoi

October 19, 2011 | 08:37

(0) user say

Restructuring investment mechanisms is a key to restructuring the economy, according to a seminar in Hanoi on October 18.

photo source: vna

Addressing the seminar on the global economy and Vietnam’s economic policies, Deputy Prime Minister Vu Van Ninh said that global economic recession has left a strong impact on Vietnam since 2008.

Although measures and policies have been carried out, Vietnam still faces a high inflation as well as high interest rates.

He emphasised the necessity to restructure the economy in combination with the renewal of growth models focusing on the restructuring of investment mechanisms, equitisation of businesses and financial market restructuring.

Participants pointed out an imbalance in the current investment mechanisms and the “illogical” structure of economic sectors.

They said that restructuring investment mechanisms must include the elimination of ineffective projects and reorganisation of unsuitable projects.

The seminar mentioned the issuance of the law on public investment under which public investment should be focused on national and inter-regional projects.

According to the Central Institute for Economics Management (CIEM), the state economic sector received 60 per cent of the total investment in the 1995-2010 period, much higher than its proportion in the national GDP. Meanwhile, the non-state sector received only between one-fifth to one-third of the investment flow.

VIR/VNA

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional