Economic difficulties just temporary: Deputy PM

June 06, 2008, 11:59
Deputy Prime Minister Hoang Trung Hai
“The current economic difficulties are just temporary. Only speculators are leaving Vietnam at this moment, while investors are staying here to continue their business,” said Deputy Prime Minister Hoang Trung Hai at 'Doing Business in Vietnam' held in Hanoi on June 5.
Speaking before several hundred foreign and domestic businesses at the forum, an event under the framework of the Global Summit of Women 2008, the Deputy Prime Minister emphasised that the government of Vietnam is strictly respecting the commitments it made to the international community.


It is speeding up the completion of administrative procedural reforms in order to create more favourable conditions for investors.


Hai said that Vietnam attaches great importance to quality standards in implementing its plan on socio-economic development, striving for a sustainable development and the improvement of competitiveness for businesses and the national economy.


Vietnam is trying to create favourable conditions for the development of all kinds of businesses under all kinds of economic sectors,” Hai said.


The Deputy PM said that Vietnam is applying fair policies for both foreign and domestic businesses. Every year, Vietnam has 50,000 more businesses with the total capital of $30bil. This shows the dynamism of the business environment in Vietnam with a lot of opportunities.


Vietnam considers foreign enterprises a part of the national economy. Co-workers and I are here to listen and discuss with you about all the issues you are interested in,” Hai said.

Regarding the performance of the national economy currently, Deputy Prime Minister Hoang Trung Hai said that high inflation, high trade deficit and the low liquidity of the banking system are the biggest challenges for the national economy.


At the business forum, Charly Madan, General Director of Citibank Vietnam, expressed his concern about Vietnam’s economy.


Vietnam has obtained high economic growth rates in the last few years, but it is now facing a macroeconomic imbalance which has been worrying investors. “What will the government do to help investors?” he asked.


Hai said that the government has drawn up eight basic measures to stabilise the macroeconomy. One of the measures is to cut public investments. The government has asked relevant ministries to delay or cancel projects which are not really necessary or urgent. Meanwhile, Vietnam is taking necessary measures to limit imports of luxury products.


Le Thi Thanh Thuy, a domestic businesswoman, said that Vietnam now has to compete with a lot of foreign enterprises. “What will the government do to help domestic businesses improve their competitiveness?” she asked.


Hai affirmed that the government has been taking necessary measures to support businesses. Most recently, the Ministry of Construction proposed abolishing seven of the 13 current construction procedures. The government will release the documents further decentralising investment management, in order to simplify administrative procedures.


However, Hai believes that the improvement of competitiveness will depend a lot on businesses themselves. He related that he knew Vietnamese entrepreneurs were flying to Africa to seek new markets.


Speaking at the Business Forum, the chairman of the Vietnam Chamber of Commerce and Industry (VCCI) also said that the government of Vietnam has been taking a lot of measures to stabilise the national economy and curb inflation. The measures have been supported by the business community and they are showing effects.


Foreign investment in Vietnam steadily increased in the first five months of the year, especially in projects initiated by strategic investors. This shows that domestic and foreign investors are still confident that the current difficulties are just temporary, while the potentials are very big here, in Vietnam, in the long term.

Source: VNE

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