Economists discuss ways to have a full market economy in Vietnam in Hanoi on July 29 (Photo: nhandan.vn) Hanoi (VNS/VNA) - Economists have said Vietnam would gain many benefits froma full and modern market economy.
“The local economy is now owned and controlled by the State, so it is not yet amarket economy,” said Nguyen Dinh Cung, former director of the CentralInstitute for Economic Management (CIEM) at the seminar “Dialogue on Vietnam’s marketeconomy institutions” held by the National Economics University and CIEMin Hanoi on July 29.
Cung pointed out that the country has been on the path to become a marketeconomy for the last 30 years, adding: “I hope the path will end soon."
He said the State’s ownership is transferred very slowly, while economicmanagement must be run by the market not the State. He suggested the Stateshould run the market in necessary areas and give space for a market economy.
He considered the level of market development of the economy and theeffectiveness of the Government as two indicators of a good market economy buthe said: “These indicators in Vietnam are not good.”
Cung said there should be a balance between the managing role of the State andthe market, emphasising that "the market economy might not solve allthe problems of the economy, but without it, our economy will fail."
Economist Pham Chi Lan said there were resolutions and documents to build amarket economy in Vietnam but, for years, they have been struggling to remove barriers.
She said though the local economy has state-owned enterprises (SOEs), FDIenterprises and private enterprises, SOEs and FDI enterprises still had theupper hand in policies and incentives.
Lan said: "In the current GDP structure, the private sector contributesless than 10 percent,” meaning the low ratio of private sectorparticipation could not help build a market economy.
Economist Le Dang Doanh said though 90 countries have recognised Vietnam as amarket economy, according to the evaluation of the US and the European Union, Vietnamdoes not have one.
To be recognised, he suggested the country step up the removal of barriers ininstitutions and the Government should not intervene deeply into the economybut only hold ownership in some crucial industries.
Doanh said if so, the economy will gain many benefits, while many procedureswill be reduced to help local businesses cut costs.
Fred McMahon, from Canada’s Fraser Institute, said that Vietnam has aremarkable economic growth record, adding that economic freedom would helpcreate momentum for growth to overcome the middle-income trap.
At the seminar, experts said Vietnam should build the economy based on aninternational set of indicators, similar to how it developed the businessenvironment according to the index of the World Bank and the World EconomicForum.
Tran Tho Dat, president of the National Economics University, said: “It istime to pay attention to the indicators of economic freedom as a measure of thefull development of Vietnam’s market economy, especially for Vietnam toovercome the low average development threshold.”/.
“The local economy is now owned and controlled by the State, so it is not yet amarket economy,” said Nguyen Dinh Cung, former director of the CentralInstitute for Economic Management (CIEM) at the seminar “Dialogue on Vietnam’s marketeconomy institutions” held by the National Economics University and CIEMin Hanoi on July 29.
Cung pointed out that the country has been on the path to become a marketeconomy for the last 30 years, adding: “I hope the path will end soon."
He said the State’s ownership is transferred very slowly, while economicmanagement must be run by the market not the State. He suggested the Stateshould run the market in necessary areas and give space for a market economy.
He considered the level of market development of the economy and theeffectiveness of the Government as two indicators of a good market economy buthe said: “These indicators in Vietnam are not good.”
Cung said there should be a balance between the managing role of the State andthe market, emphasising that "the market economy might not solve allthe problems of the economy, but without it, our economy will fail."
Economist Pham Chi Lan said there were resolutions and documents to build amarket economy in Vietnam but, for years, they have been struggling to remove barriers.
She said though the local economy has state-owned enterprises (SOEs), FDIenterprises and private enterprises, SOEs and FDI enterprises still had theupper hand in policies and incentives.
Lan said: "In the current GDP structure, the private sector contributesless than 10 percent,” meaning the low ratio of private sectorparticipation could not help build a market economy.
Economist Le Dang Doanh said though 90 countries have recognised Vietnam as amarket economy, according to the evaluation of the US and the European Union, Vietnamdoes not have one.
To be recognised, he suggested the country step up the removal of barriers ininstitutions and the Government should not intervene deeply into the economybut only hold ownership in some crucial industries.
Doanh said if so, the economy will gain many benefits, while many procedureswill be reduced to help local businesses cut costs.
Fred McMahon, from Canada’s Fraser Institute, said that Vietnam has aremarkable economic growth record, adding that economic freedom would helpcreate momentum for growth to overcome the middle-income trap.
At the seminar, experts said Vietnam should build the economy based on aninternational set of indicators, similar to how it developed the businessenvironment according to the index of the World Bank and the World EconomicForum.
Tran Tho Dat, president of the National Economics University, said: “It istime to pay attention to the indicators of economic freedom as a measure of thefull development of Vietnam’s market economy, especially for Vietnam toovercome the low average development threshold.”/.
VNA
