~ Le Viêt Nam, aujourd'hui. ~
The Vietnam News

[Year 1997]
[Year 1998]
[Year 1999]
[Year 2000]
[Year 2001]

Vietnam economist tells party to open

HO CHI MINH CITY - A veteran Vietnamese economist said on Tuesday that the ruling Communist Party must open top positions to non-party members and urgently introduce new reforms.

Nguyen Xuan Oanh, a former government adviser who helped draft Vietnam's landmark Doi Moi, or economic restructuring, reform package in the mid-1980s and the country's law on foreign investment, said existing reforms had stalled.

``It is very important to let non-party members participate in decision making,'' the Harvard-educated Oanh told Reuters in an interview.
``It's a highly-forced choice making, so that only a minority of people can work for Vietnam. The best and the brightest are not in (government),'' he added. ``I can say that because I'm out of the race now.''

The Communist Party monopolises power in Vietnam and in the past year has taken an increasing hardline towards dissenters.
Northern Vietnam-born Oanh, 80, has seen the country from both sides of the political fence. After many years abroad in Japan and the United States he returned in the mid-1960s to become the former South Vietnam's central bank governor.

He also served as deputy prime minister and for six months was acting prime minister in the U.S.-backed Saigon regime. He says he was held under house arrest for nine months after the communist victory that ended the Vietnam War in 1975.

Oanh said the time for a new Doi Moi II had come.
``Doi Moi is good but it's not enough. Management still leaves so much to be desired and the banking system is very soft,'' he said.
After achieving stellar growth for much of the last decade, Vietnam has seen its economic prospects dim as investors lost faith in the country and fallout from the Asian financial crisis hit.

Prime Minister Phan Van Khai on Monday was reported as saying that economic growth in the first quarter of this year had failed to reach set targets.
New foreign investment approvals have slowed to a trickle, export growth is now negative and imports have shrunk.

``There are indications that things are not going as well as expected,'' Oanh said.
The local dong currency, which has been devalued by around 20 percent since late 1997, was still too strong and needed to depreciate by another 20 percent if export competitiveness was to be rekindled, he added.

``The politicians think that if there is a devaluation it is very bad, they think they are losing out, but to us (economists) it is nothing but a corrective measure,'' Oanh said.
While praising current Premier Khai as motivated, he said that management and implementation of state polices was weak and that measures including tax reductions and a freeing of the nascent private sector were needed.
Oanh also said pressure from multilateral bodies such as the World Bank and International Monetary Fund for the government to speed reform had been counter-productive.
``The trouble is the more hard pressed they are by the international agencies the more obstinate they become,'' he said.

``They are stubborn but they are inching towards what international agencies are saying.''
Oanh said that while political stability was a big advantage, the Communist Party refused to relax its grip.

``If you can find a better word for socialism, you know what it is?,'' he said. ``Control. It takes time to learn how to control and be in a minority.''

Reuters - March 30, 1999.