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Vietnam prepares for post-crisis trade
More than 400 policy-makers and economists on July 9 discussed ways of how to restructure and revive the national economy after the world economic crisis comes to an end.
They also worked on a wide range of tactics to boost exports, improve the quality of human resources, and draw in more foreign investment.
The Head of the Government Office, Nguyen Xuan Phuc, said that Vietnam has been preparing to grasp any development opportunities that followed the crisis. He quoted the latest economic statistics, saying that Vietnam is one of only 13 countries to show a positive economic growth rate at 3.9 percent.
“The bustling real estate and stock markets and increased volumes of foreign direct investment are signs that Vietnam’s economy is on the right track,” said Mr Phuc.
But former Deputy Prime Minister Vu Khoan said that Vietnam would not escape the effects of the post-crisis era since its imports and exports depended largely on the global market. He said businesses would have to import large quantities of modern machinery and equipment to stay competitive.
“This situation could possibly trigger a huge trade deficit and that needs to be examined,” he said. “To attract more foreign investment, efforts should be made to build and upgrade the country’s infrastructure and train more skilled workers.”
Professor Phung Xuan Nha from the National Economics University said that Vietnam is short of high calibre workers qualified to be CEOs, economic consultants or policy planners.
The conference heard that 60 percent of university graduates had to be retrained by their employers so they could carry out their jobs properly. It was said that the economic crisis showed how Vietnam’s cheap unskilled workers were no longer an advantage.
Mr Khoan also urged policy-makers to help the domestic market and devise long-term strategies.
“The domestic market did not receive sufficient attention until the overseas markets and the domestic market showed more potential,” he said.
Mr Khoan said the quality and packaging of goods needs to be improved and more investment should be put in expanding distribution channels and advertising. Campaigns to encourage Vietnamese to use Vietnamese goods would also help.
The participants agreed that incentives should be offered to export companies through lower taxes, simplified customs procedures, Government-assisted promotions and an improved infrastructure.
Peter Wolff from the German Development Institute said small- and medium-sized businesses should be among the first to receive Government support through subsidized interest rate on bank loans, Government credit guarantees, deferred collection of corporate taxes, and by reducing value-added tax on certain products or by supporting exports through reducing some tariffs.
“Measures like these would boost consumption while ensuring social welfare for the most vulnerable groups,” Wolff said.
Participants also agreed it was also time for local businesses to restructure so they could operate more effectively.
The Deputy Chairman of the Vietnam Chamber of Commerce and Industry, Pham Gia Tuc, said that Vietnamese companies should do more research on emerging markets and new products to penetrate more export markets.
“Rural areas have also been ignored by businesses and should be given more attention since they account for two thirds of the Vietnamese population,” said Mr Tuc.
vov, vietnamnews
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