Vietnam’s economy saw some goods signs in the beginning of year such as lower inflation and a trade surplus. However, a number of problems have grown, including increasing bad debts, decreasing budget income and credit growth.
Dr. Tran Dinh Thien, Associate Professor, Director of Vietnam Institute of Economics, made the statement at the opening ceremony of the Autumn Economic Forum held yesterday in the southern city of Vung Tau.
Dr Thien also pointed out some paradoxes in the Vietnamese economy such as local banks having large amounts of money, while many enterprises complain about accessing capital.
“Many outstanding problems relating to land disputes, lax management at state-owned enterprises or risks to the banking system, etc. are bringing more difficulties to the economy and people’s lives,” he said, while proposing solutions including setting out a long range development plan, removing quotas for provincial GDP growth, and providing more assistance to enterprises.
National Assembly Deputy Tran Du Lich from HCM City also agreed with Dr Thien, saying that it was necessary to lower corporate income tax and help firms access credit.
Dr Nguyen Dinh Cung, Deputy Director of the Central Institute for Economic Management and other experts also expressed that the solutions should not be based on old viewpoints because they would not help change the situation in a long term.
Vietnam’s economy is facing more challenges, which can be seen in decreasing GDP, the rising number of enterprises going bankrupt and unsold inventories.
The forum was co-organised by the National Assembly’s Economic s Committee, Vietnam Academy of Social Science, Vietnam Chamber of Commerce and Industry and UNDP in Vietnam.
