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World Bank urges widescale reforms
The World Bank yesterday warned that Viet Nam would continue to face many risks to its macro-economy stability, predicting the nation's real Gross Domestic Product (GDP) would close at 5.2 per cent at the end of 2012 instead of the planned 6.5 per cent.
Speaking at a press conference before the bi-annual Consultative Group meeting, to be held in Ha Noi next Monday, Deepak Mishra, leading economist for the bank in Viet Nam, said the risks included high-core inflation and low levels of foreign-exchange reserves, a vulnerable banking sector – and delays in equitisation of State-owned enterprises.
This year's Consultative Group meeting will focus on the elements laying the foundation for Viet Nam's sustainable growth, which also includes discussion on the nation's land law and education reforms.
World Bank country director Victoria Kwakwa said donors considered land-law reform as the critical element for Viet Nam's inclusive and sustainable growth.
Kwakwa also noted that donors had been talking about making changes to the Consultative Group's platform as Viet Nam entered a new stage of development, noting that in the future it would move away from resources mobilisation to candid conversation on all solutions.
"It's more about policy dialogue, not so much about the money," she said.
Still, donors are expected to release a new funding commitment for Viet Nam in 2013 at the end of this year's meeting. Last year, donors pledged nearly US$7.4 billion in Official Development Assistance for the country.
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