Restructuring investment mechanisms is a key to restructuring the economy, according to a seminar in Hanoi on Oct. 18.
Addressing the seminar on the global economy and Vietnam’s economicpolicies held in Hanoi on Oct. 18, Deputy Prime Minister Vu Van Ninhsaid that global economic recession has left a strong impact on Vietnamsince 2008.
Although measures and policies have been carried out, Vietnam still faces a high inflation as well as high interest rates.
Heemphasised the necessity to restructure the economy in combination withthe renewal of growth models focusing on the restructuring ofinvestment mechanisms, equitisation of businesses and financial marketrestructuring.
Participants pointed out an imbalance in the current investment mechanisms
and the “illogical” structure of economic sectors.
Theysaid that restructuring investment mechanisms must include theelimination of ineffective projects and reorganisation of unsuitableprojects.
The seminar mentioned the issuance of the law on publicinvestment under which public investment should be focused on nationaland inter-regional projects.
According to the Central Institutefor Economics Management (CIEM), the State economic sector received 60percent of the total investment in the 1995-2010 period, much higherthan its proportion in the national GDP. Meanwhile, the non-State sectorreceived only between one-fifth to one-third of the investment flow./.
Addressing the seminar on the global economy and Vietnam’s economicpolicies held in Hanoi on Oct. 18, Deputy Prime Minister Vu Van Ninhsaid that global economic recession has left a strong impact on Vietnamsince 2008.
Although measures and policies have been carried out, Vietnam still faces a high inflation as well as high interest rates.
Heemphasised the necessity to restructure the economy in combination withthe renewal of growth models focusing on the restructuring ofinvestment mechanisms, equitisation of businesses and financial marketrestructuring.
Participants pointed out an imbalance in the current investment mechanisms
and the “illogical” structure of economic sectors.
Theysaid that restructuring investment mechanisms must include theelimination of ineffective projects and reorganisation of unsuitableprojects.
The seminar mentioned the issuance of the law on publicinvestment under which public investment should be focused on nationaland inter-regional projects.
According to the Central Institutefor Economics Management (CIEM), the State economic sector received 60percent of the total investment in the 1995-2010 period, much higherthan its proportion in the national GDP. Meanwhile, the non-State sectorreceived only between one-fifth to one-third of the investment flow./.
