Vietnam will speed reform
HANOI: Prime Minister Phan Van Khai vowed yesterday to speed up Vietnam’s market reforms, acknowledging that the
global economic slowdown had eaten into the communist authorities’ ambitious growth plans.
The continuing fallout of the September 11 terror attacks in the United States meant there was little prospect of a swift recovery
in demand for Vietnam’s key exports, Mr Khai told MPs at the opening of the winter session of Parliament.
The government therefore needed to take urgent steps to improve the climate for trade and investment.
“Given the current economic and domestic situation, we can foresee greater difficulties in the next year. Economic restructuring
should be accelerated,” said Mr Khai, who is regarded as the leading reformer within the communist regime.
The prime minister acknowledged that long promised action on reform of the State sector and banking system had yet to be
taken.
“Economic restructuring process is slow and market demands are yet to be followed. The financial system is not strong yet.
State sector reform is moving at a slow pace,” he said.
Worse, graft and obstructionism remained widespread in the State bureaucracy, preventing Vietnam from taking full advantage
of its reputation as a safe investment destination in the aftermath of September 11, Mr Khai said.
Large numbers of “underqualified officials”, who displayed “weak compliance with the law” and “indifference to the legitimate
aspirations of the State”, had resulted in the “loose organisation and implementation of state policies” designed to establish the
rule of law.
Reform of the graft-ridden and capricious bureaucracy would now be the number one task in the Government’s battle to win
trade and investment, he said.
Mr Khai attempted to put a brave face on the figures, insisting he still expected growth of 7 per cent this year, against the 5 per
cent or less predicted by most analysts.
But he acknowledged that the fall-off in world demand had wiped $US1 billion ($A1.9 billion) off Vietnamese exports, which
were now expected to grow by just 8 per cent this year against a projected 16 per cent.
Postcourrier on line (Papua New Guinea) - November 21st, 2001.
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