Hanoi cautious on economy, wants integration
HANOI - Vietnam Prime Minister Phan Van
Khai painted a cautious picture of the country's economic
prospects on Thursday, pointing to signs of improved growth
despite a variety of woes.
Khai said the government wanted to accelerate integration with
the world economy, and would seek to finalise a landmark trade
deal with the United States that has been delayed since the pact
was agreed in principle last July.
He said the communist leadership would boost Vietnam's
economic growth and competitiveness partly by dismantling state
monopolies and creating more than one million jobs in 2000, but
he gave few specific details.
Foreign donors said that notwithstanding the government's best
intentions, as usual in Vietnam the devil would be in the
implementation of policies through an unwilling bureaucracy.
``The government is well aware that many tough challenges lie
ahead,'' Khai said in a speech at the opening of the current
session of the National Assembly, Vietnam's legislative organ.
``However,...we still have great potential. Our country is strong
and we have material, spiritual and intellectual resources
everywhere, but we must use these.''
National Assembly sessions, which occur twice a year for a
month each, generally arouse little interest.
But during the current session delegates are expected to sack
Deputy Prime Minister Ngo Xuan Loc for mismanagement and
may also appoint a new central bank governor. Loc has already
been censured by the ruling Communist Party.
Delegates will also debate a number of laws, including
amendments to the Penal Code and the Land Law.
FEW INCENTIVES OFFERED TO FOREIGN INVESTORS
Khai said Asia's economic crisis and many natural disasters had
put a heavy burden on Vietnam over the past two years.
Economic growth this year -- which the government expects to
be about 4.7-5.0 percent -- would be the lowest since 1990,
the reformist prime minister from southern Vietnam said.
He said despite poor consumer demand, mounting stockpiles of
goods and increasing inefficiency among state-owned firms,
Hanoi had targeted economic growth in 2000 at 5.5-6.0
percent.
Indeed, Khai said stronger export and agricultural growth
indicated that the target could be met. Growth from quarter to
quarter had risen recently, he added, without giving details.
One key item on the 2000 agenda would be to finally open a
stockmarket after years of delay, Khai added.
He also expressed concern over a fall in foreign investment but
offered little solace to businessmen who frequently moan about
Vietnam's red tape and high-cost economy.
Khai did not say when he believed Hanoi and Washington
would sign a trade deal that would open Vietnam's economy,
but he made clear the country's 79 million people needed to feel
the heat of foreign competition.
He complained that many companies preferred to shelter behind
protection, a mentality that needed to change if the country was
to catch up with its more nimble neighbours.
President Tran Duc Luong, speaking during a break in the
assembly session, said Hanoi would study China's deal with the
United States on joining the World Trade Organisation.
``Vietnam and China along with many countries in the world
understand the need to promote international economic
exchange and integration,'' Luong told reporters.
More conservatives members of the Communist Party have
expressed concern over opening too much to the world
economy, saying this would place one party control at risk.
Reuters - November 18, 1999.
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