SBV: Growth at any cost is undesirable

May 06, 2011 | 11:29

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Vietnam will strive to attain a sustainable and environmentally-friendly economic growth, said the governor of SBV.

SBV Governor Nguyen Van Giau

State Bank of Vietnam (SBV) Governor Nguyen Van Giau said during the Bank Governors' Seminar, part of the Asian Development Bank’s (ADB) 44th annual meeting in Hanoi, that the costs of growth should be taken into consideration.

According to Giau, Vietnam is one of the two developing countries in the world that could be most impacted by climate change.

“Estimates say that if the sea level rises by one metre, it would directly impact 10 per cent of the population, which would have an equal impact on the GDP,” Giau said.

He said the country should take immediate steps to prevent the negative effects of economic growth.

He called on Asian nations to join hands to tackle the issue, along with a contribution from the ADB.

He also highlighted the significance of coordination between governments and the public in pursuing a sustainable economy.

Vietnam’s economic growth in the past has been fuelled by an opening of trade policies, along with a large flow of capital from ODA, FDI, overseas remittances, and the securities and realty markets, according to Prof. Kenichi Ohno, from Japan Policy Research Institute University of San Francisco Centre for the Pacific Rim. He pointed out that this growth is not based on productivity.

The Vietnamese government should increase its support of small and medium-sized enterprises (SMEs). These firms have been playing an important role in the national economy, contributing around 47 per cent to the country’s GDP, he added.

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