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| Vo Dai Luoc addresses the seminar on problems of and solutions for the Vietnamese economy - Photo: Kinh Luan |
Vo Dai Luoc, a professor who is doing research on the economic strategy for the next ten years as requested by the State, told a seminar at the Saigon Times Group that Vietnam was facing problems of trade and budget deficits, bad loans, and especially inefficient public investment.
The economic policy should be more open in the years to come as a way to leverage sustainable development, he told the seminar on problems and solutions for the local economy.
The reason behind these problems is that the economy’s growth engine remains unchanged, as it is based on export-oriented manufacturing and the leading role mandated to the state sector.
“I am not among those who support the idea that state-owned enterprises play the key role in economic development, and I think that we should make some breakthrough in changing this policy,” he said.
Luoc called on policymakers to make changes to the policy and mechanism because the country has seen a high growth rate but it is still not sustainable.
South Korea, as he pointed out, is probably the best current example of a developing economy making leaps and bounds into the realm of the most advanced.
“Vietnamese policymakers should take it as an example, and be aware that, with labor costs rising, the country needs to follow suit,” he said.
He suggested that the Government give a more open, thriving and vibrant economic environment to the special economic zones, allow them to utilize an economic management system that is especially conducive to business and has yet to exist in the rest of the country.
He also advised that local enterprises should not compete with China in industrialization. “Instead, they should try to find a different way, choose what are their competitive advantages in industries and services,” said Luoc.
“But I fear the kind of commitment needed can’t be created by Government initiatives alone,” he added, hinting at the responsibility of the business community as well.
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