Tue. May 21st, 2024

The PM has approved an overall plan to restructure the economy between
now and 2020, particularly credit institutions and State-owned
enterprises (SOEs).

Under the plan, State funding
would represent 35-40 percent of the total social investment, which is
to make up 30-50 percent of the nation’s gross domestic product ( GDP )
in the coming years.

This is to ensure resources are in place for the country’s continued development.

Major balances of the economy including investment, savings,
consumption, State budget, public debt and trade and payment balances
need to be maintained at reasonable levels.

About
20-25 percent of State budget spending will be designated for
development every year. Capital management methods should be renewed and
massive investments should be avoided.

The scales for private investments will be expanded for the development of infrastructure and driving economic regions.

The plan aims to boost a market economy, drive social resources into
manufacturing competitive products and help form a reasonable economic
structure.

It would allow high-tech sectors to gradually replace low-level ones for rapid and sustainable economic growth.

By 2015, the country would focus on cleaning up credit institutions with bad debt treatment being a top priority.

These institutions have to concentrate on their core business, assure
payment capacity and enhance transparency in operations.

The credit institution system would be comprehensively restructured to
ensure systematic safety, efficiency and sustainability as well as
service quality; while State-run banks and commercial joint-stock banks
with State controlling stakes would have to prove their driving roles in
the system.

Fragile banks would be facilitated for
merger and acquisition and foreign lending institutions would be
stimulated to equally compete and cooperate in Vietnam .

State-run firms will concentrate on areas such as defence industry,
manufacturing essential goods and providing key services and some basic
high-tech sectors, and promptly withdraw capital from non-core lines of
business.

SOEs will speed up equitisation, apply
modern management methods and follow market economy rules, while private
economic groups which could be competitive at both domestic and global
markets will be encouraged to develop.

The plan
affirms that maintaining macro-economic stability is extremely important
in the restructuring process. Monetary policies must be carried out
cautiously, flexibly, comprehensively and efficiently in order to fulfil
the goal of controlling inflation, and ensuring reasonable growth.

Authorities are required to create a better investment environment to
attract more development capital and intensify supervision of the market
and prices of essential goods, especially electricity, coal and
petroleum.

The restructuring of production and service
sectors will be accelerated to increase products’ added value and
domestic content, with priority given to the development of key economic
regions and marine economic centres.-VNA

By vivian