Vietnam Should Restructure Economy
Vietnam should restructure its economy by reducing dependence on exports and FDI inflows and stimulating the domestic demand amid the global turmoil, officials, scholars and analysts told the Asia conference held in Ho Chi Minh City April 23.
“The current global crisis has more adverse impacts on Vietnam’s exports than the crisis in 1997-1998, its key exports markets including the U.S. and Japan are contracting,” Deputy Minister of Industry and Trade Nguyen Thanh Bien said.
In the first quarter, Vietnam’s exports rose only 2.4 per cent on year to US$13.5 billion, Bien said.
Demand stimulus policies by many nations have demonstrated low-than-expected effectiveness as consumers in EU and America are boosting their savings, Charlene Barshfsky, from Wilmer Cutler Pickering Hale and Dorr LLP Co said.
Purchasing power will unlikely recover in one or two years, Charlene Barshfsky forecast.
The Vietnamese government should focus on stimulating its domestic demand, Charlene Barshfky proposed.
Huang Renwei, deputy dean of International Economy and Politics School of Shanghai Academy of Social Sciences said China is restructuring its economy with exports accounting for 40 per cent to reduce outside impacts.
In the first quarter, Vietnam’s pledged FDI dropped 40 per cent to US$6 billion. (Vietnam Economic Times)
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