08:43 | 03/08/2018 Economy- Society
Prime Minister Nguyen Xuan Phuc has asked for a set of criteria to evaluate the economic restructuring effort during the 2016-2020 period in order to make Vietnam’s economic growth more sustainable.
|PM Nguyen Xuan Phuc - Image: NDO|
At a government meeting on August 2, the PM warned that if the economy is not restructured, Vietnam will continue falling behind.
The meeting was held to review one and a half years of the implementation of a government action programme, known as Resolution 27, on measures to restructure the economy and renew the growth model.
PM Phuc stated that recent efforts have brought about certain results but significant challenges remain, as the economic growth model has shown little change, alongside slow public investment disbursement and sluggish agricultural reform.
According to the cabinet leader, economic restructuring must bring into play the role of both the state and the market, noting that the government’s mission is to fine-tune the market mechanism.
PM Phuc emphasised that institutions and policies are the lever to make reform successful.
According to Dr Nguyen Dinh Cung, an economic advisor to the PM, if Vietnam could achieve its restructuring targets, the economy would grow by up to 7.5 pct or higher annually until 2025.
He suggested looking for new growth drivers within the domestic economy by fostering the three engines of Hanoi, Ho Chi Minh City and Da Nang, which could add 0.5 percentage points to the overall growth if their economies grow by an additional 1 percentage point.
Other officials also agreed that if growth continued to be based on old drivers, there would be no breakthroughs.
The chairman of Da Nang underlined the leadership’s strong determination which has been translated into an action plan and inspiration for the business community as a factor to promote the economic restructuring efforts.
For his part, State Bank Governor, Le Minh Hung, stated that macroeconomic stability is of utmost importance when undertaking economic reform, adding that it is also necessary to attract social investment and develop the capital market.