The economic restructuring scheme for 2016-2020 produced initial successes, said Dr Nguyen Dinh Cung, Chairman of the Central Institute for Economic Management (CIEM).
At the Consultative Workshop “Midterm review of the implementation of the master plan for economic restructuring for the period of 2016-2020” co-organised by the Central Institute for Economic Management (CIEM) and AUS4REFORM - Australia’s programme to support economic reform in Vietnam, initial public economic financial assessment results for 2016 - 2018 showed that 25.8 per cent of deployed tasks have clear results; 57.5 per cent of missions in progress do not have clear results; and 16.7 per cent of deployed tasks did not have results. According to CIEM, 24 per cent of restructuring targets are expected to be completed, 32 per cent are likely to be completed and 41 per cent are unlikely to be completed. According to experts, Vietnam has a relatively high economic growth rate. And, AUS4REFORM of Australia has played an active role.
Dr Cung said that the Fourth Industrial Revolution is spreading across the world, including Vietnam. Therefore, Vietnam needs to think more and act more, rather than just proclaim watchwords. “We also need to start from perception, institutions and infrastructure to embrace new things instead of adhering to inflexible policies. If Vietnam wants to ‘surf the wave' to catch up with epochal trends, it cannot use old thinking but must immediately adopt the 4.0 thinking to inspire individuals and organisations to have new creative ideas,” he added.
In the past year, in spite of acknowledging much progress in fundamental economic reforms, Vietnam’s economic restructuring has still faced major hurdles. No matter how the way of growth has changed, the way of distribution of resources has not changed. Basically, resources have not been reallocated for higher performance. In addition, major flows have shifted slowly, such as the shift from agriculture to service and industry, from the countryside to the city, from the State to the private sector, and from formal to informal. Meanwhile, these flows are important drivers of growth.
A key to radical economic reform is that Vietnam must develop and perfect the market for production factors, especially financial markets (capital market and credit market) and land-use rights market; allocate and use State resources in accordance with market rules.
Mr Le Van Ha, Director of Quang Minh Investment and Development Consulting Joint Stock Company, said that Vietnam’s economic restructuring mainly centres on the distribution of resources. Accordingly, economic restructuring must be seen from the angle of resources held and managed by the State, the role of the State in issuing and ensuring law enforcement, and promoting the effective use of resources.
He added that Vietnam still has “administrative procedure matrix” with over 7,200 procedures. Meanwhile, compliance cost is high and likely to increase. The time needed to fulfil administrative procedures is long. All these are affecting business performances of enterprises.
According to Dr Can Van Luc, a financial and banking expert, after many years of economic restructuring, Vietnam needs an independent assessment body in charge of gauging the outcome and effectiveness of economic restructuring. “In restructuring criteria, it is necessary to clarify how much we have spent on restructuring. This is a prerequisite and critical condition,” he said.
In addition, it is necessary to clarify opportunity costs of restructuring, transformation, clarify implications of delayed policies on national development and economic damage, he added. Vietnam also needs to make clear four comparative points to the world: Business environment, business capacity, innovation and logistics costs, to know the gap between the Vietnamese economy and the world.
Anh Phuong
Vietnamese
