return icon Vietnamnet.vn

Experts: Vietnam needs reform for growth

VietNamNet Bridge – Economic experts have underscored the need for Vietnam to speed up reform to fuel economic growth and well ingrate into the world economy. 

VietNamNet Bridge – Economic experts have underscored the need for Vietnam to speed up reform to fuel economic growth and well ingrate into the world economy.

Vietnam has reached a critical juncture, heard a forum on trade policy for the Trans-Pacific Partnership (TPP) and the bilateral free trade agreement (FTA) between Vietnam and the European Union (EU).

Speaking at the forum held by the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade Ministry in Hanoi last week, expert Vo Tri Thanh said this is a break-or-make moment. The growth model should be changed to avoid falling into a middle-income trap, he noted.

Thanh emphasized the urgency to have new impetus for Vietnam to step up reform to enable the country to fulfill its commitments to its FTAs with foreign partners.  

Thanh said after 30 years of doi moi (renovation) and market openness, Vietnam has become a middle-income country. However, the nation is coping with a slew of challenges such as the inefficiency of State-run enterprises and public investment.

He pointed out one of the major challenges for Vietnam as how the country can retain high economic growth while ensuring environmental and social sustainability.

Thanh said the TPP would enable Vietnam to increase exports to other Pacific Rim countries including the United States, which is among Vietnam’s biggest export markets. The TPP countries account for 28% of the world’s trade and 37% of the world’s gross domestic product (GDP). The EU makes up around 30% of world trade and 30% of global GDP.

Economic expert Pham Chi Lan said the TPP and the Vietnam-EU FTA will create big opportunities for Vietnam to grow and also put pressure on the country to boost reform. However, whether the country can make the most of these opportunities depends on its own effort.

Lan said Vietnam has drawn up a clear roadmap for reform. She said Vietnam does not lack resources for reform but a strong determination. “Time waits for no one and opportunities will slip away soon in this rapidly changing world. We must take action right now.”

She said the new FTAs will bring opportunities for Vietnam to reform institutions and build a model for a market-oriented economy. The Government should launch a national program to inspire entrepreneurship among the Vietnamese.     

As most Vietnamese enterprises are small, their participation in the global supply chain is limited. Only 36% of domestic firms have been able to join the world’s production network while the percentage is 60% in Malaysia and Thailand.

Around 21% of small and medium enterprises (SMEs) in Vietnam take park in the global supply chain compared to 30% in Thailand and 46% in Malaysia. This is why Vietnamese SMEs can benefit little from foreign direct investment (FDI) projects in terms of technology transfer, and productivity improvement.

Miriam Garcia Ferrer, head of the Trade and Economic Section of the Delegation of the EU to Vietnam in Hanoi, said Vietnam will have to face many challenges when the Vietnam-EU FTA comes into force. Such challenges include the restructuring of State-owned enterprises (SOEs), government procurement, institutional reforms, geographical indications, transparency and investor protection.

She said institutional reforms are pivotal to improve the business environment and the legal system, and that Vietnam must respect intellectual property rights, restructure SOEs, remove subsidies and foster competition, among others.

    
related news

Experts warn of bumpy road ahead

I was really stunned by the “American-style draft”    

EU-Vietnam Free Trade Agreement to be signed in December

TPP countries watch out for ‘exchange rate game’

SGT

MORE NEWS

A day in the life of a fisherman in ​​Mong Cai

After Van Don - Mong Cai highway opened for traffic in early September, the border city of Mong Cai became a new tourist attraction.

Vietnamese navy ship arrives at Lumut port, beginning Malaysian visit

Sailing Ship 286-Le Quy Don of the Vietnam Naval Academy and a delegation of the Vietnam People’s Navy arrived at Lumut port in the Malaysian state of Perak on October 4, beginning a visit to Malaysia.

Hanoi, CNN boost tourism promotion cooperation

CNN wishes to resume tourism promotion cooperation with Hanoi, thus contributing to introducing the capital city’s cultural identity and valuable traditions to the world, Senior Vice President of CNN Robert Bradley said.

Vietnam's brand value reaches $431 billion

According to the latest report of the world's leading brand valuation consulting company - Brand Finance, Vietnam's national brand value has increased by 11 percent in 2022, from $388 billion to $431 billion.

Unblocking capital sources for the economy

After the recent increase in credit limit, the State Bank of Vietnam (SBV) has granted 13.6 percent of the total 14 percent credit room in 2022.

Share prices fall, billionaires lose big

Billionaire Tran Dinh Long’s assets have fallen by $1.6 billion this year, while billionaire Pham Nhat Vuong has lost $2 billion.

Video game helps promote Vietnamese culture, tourism

The video game “Lac Viet phieu luu ky” (Lac Viet Adventures) was selected by the Ministry of Foreign Affairs as a promotional product on digital platforms at the Vietnam Days Abroad 2022 in Austria, India, and the Republic of Korea this year.

Over 100 Vietnamese citizens deported from China for illegal stay

106 Vietnamese citizens that stayed illegally in China were returned to Vietnamese authorities at the Ly Van Border Gate in the northern province of Cao Bang on Tuesday.

"578 Magnum" film chosen to compete at 2023 Oscars

The head of the Vietnam Cinema Department, Vi Kien Thanh, said the “578: Phat Dan Cua Ke Dien” (578 Magnum) film received a score of 9, the highest from the national selection board, and was chosen to represent Vietnam at Oscars 2023.

HCM City to recruit key officers through exams

The city’s Vice Chair Vo Van Hoan has signed a decision on organizing exams to select leaders and managerial officers for local public agencies.

HAGL Group repays bonds worth trillions of VND

The Hoang Anh Gia Lai Group (HAG) of entrepreneur Doan Nguyen Duc eased its debt burden of VND6.6 trillion in bonds prior to Decree 65’s issuance.

70-year-old publishing industry tries to catch up with rest of the world

Tran Chi Dat, Director and Editor-in-Chief of the Information and Communications Publishing House, says that e-books and other modern publishing models are now giving more choices to readers in accessing content.

Vietnam's first monkeypox patient tests negative, symptoms disappearing: hospital

The patient, a 35-year-old woman who return from Dubai, is no longer suffering from fever, while the blisters on the face, hands and feet have dried up, peeled off and new skin is forming, said the doctors treating her.

Largest-ever Vietnamese rock concert to hit stage in HCM City

Leading rock bands and singers from across the country are set to perform in the World Rock Vietnam concert which will get underway on December 10 in Ho Chi Minh City.

Vietnam to impose temporary anti-dumping duties on Chinese tables, chairs

Vietnam will impose temporary anti-dumping duties on some table and chair products originating from China, the Vietnamese Ministry of Industry and Trade has said.
back_to_top