Europe, Vietnam share experience in economic restructuring

April 26, 2012 | 08:37

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A seminar held in Hanoi on April 25 has highlighted both European and Vietnamese experiences in economic restructuring.

The event, organized by the Vietnam Academy of Social Sciences and Germany’s KAS Institute, was attended by scientists from Germany, Italy, Hungary, France, Spain and Vietnam.

Participants said as Vietnam is an open economy, it is easily vulnerable to the global economic recession. They believed that 2012 will bring many difficulties in boosting trade and economic cooperation between Vietnam and Europe.

Europe remains one of Vietnam’s leading development aid donors. Yet, foreign direct investment from Europe to Vietnam has declined in recent years, and 2012 is no exception.

Dr Nguyen Thang, from the Vietnam Academy of Social Sciences, said the restructuring of the economy should be primarily conducted in businesses that abused financial tools, leading to a high ratio of debt to equity and risk.

According to Thang, the state should not give debt assistance to any state-owned businesses and be willing to let them go bankrupt if they fail to pay.

He stressed the need to continue the roadmap of opening up the markets where state monopoly remains in order to create a competitive climate for all economic sectors. The state, he said, should restructure the electricity, petrol and oil sectors as soon as possible.

In the long run, Vietnam should clearly define the role of the State in the market economy, in which it mainly focuses on providing institutions and infrastructure, both soft and hard, for the development of the private sector.

VOV

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