Government needs more effective policies: analyst

The government must carry out effective management policies next year to weather difficulties presented by the gloomy outlook of the global economy, said head of the Vietnam Institute of Economics Tran Dinh Thien.
Together with the global economic downtrend, Thien warned that the country will also enter 2012 with the lingering negative consequences of 2011, including a decrease in the economic growth rate, high inflation and trade and budget deficits.

The government should make more efforts to decrease inflation to the lowest level of 5-6 percent to ease the impact on businesses next year when the world’s economy is forecast to experience an extremely difficult time, he said.

To help businesses overcome the challenges, Thien said that the government needs to help businesses recover by restoring confidence and carrying out strong solutions to reduce interest rates and create the best possible conditions for them to access capital.

Dr Can Van Luc, a senior advisor from the Bank for Investment and Development, expected that newly-emerged markets will stand firm in the challenges of global economic downturn.

Growth rates and the inflow of investment capital into domestic markets will be maintained at a satisfactory level, he said.

According to the UN “World Economics Situation and Prospects 2012″, the inflow of capital poured into developing countries will show positive signs, as US$ 229.6 billion is predicted to be disbursed in 2012 compared to the 2011 figure of US$ 218.6 billion, he said.

In comparison to other regional countries, Vietnam reaches an above average level and quality of growth.

The country is one of the top 10 in terms of revenue from overseas remittances, estimated at US$ 9 billion this year, accounting for 8 percent of GDP, Luc said.

However, the government should make a detailed plan and set an itinerary for the economic restructuring, he said. It should establish a dedicated committee on the issue instead of assigning it to the Ministry of Planning and Investment as it does currently.
VietnamPlus

Tags: Vietnam economic, Vietnam economic growth, Vietnam economy, Vietnam economy 2011

Posted by VBN on Dec 29 2011. Filed under Economy News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry