Hanoi (VNA) – Economic restructuringoutcomes so far remain modest and have yet to create favourable conditions to shiftto a good growth model, according to the 2016 Vietnam economic report of theNational Economics University. 

The annual report, unveiled at a scientificworkshop on March 16, examined the real situation of the country’s economy in2016 with a focus on economic restructuring associated with growth model reformand the role of the development-facilitating State.

While sharing the assessment on the positivesigns of the economy as specified in the National Assembly’s Resolution23/2016/QH14, the report noted that the country failed to meet the economicgrowth rate target for 2016, the growth rate was lower than the 2015 figurewhile inflation was higher, and public debt was already close to the ceiling,signaling looming macro-economic risks.

Regarding economic restructuring, the reportrecognized the initial outcomes such as improved growth effectiveness andeconomic growth’s positive impacts on social progress.

However, the country’s economic growth was stilllargely based on capital and foreign investment, the report said, adding thatthe private sector remained weak and the State sector failed in its leadingrole of the economy.

The report envisioned two growth scenarios forVietnam in 2017, with projected growth rates at 6 percent and 6.6 percent.

It suggested the country should increase investment in hi-techagriculture, devise more policy support for private businesses, improve thequality of State-owned enterprise equitisation, and develop processing andmanufacturing industries.

It is necessary to invest more strongly inhigh-quality resources, including technology and manpower, and ensure growth’spositive impacts on social aspects by enforcing harmonious growth policies, thereport said.

Vice Chairman of the Party Central Committee’sEconomic Commission Nguyen Ngoc Bao said the most important thing at present isto create a fair business environment for all stakeholders in the economy.

Economic growth driving forces in 2017 includesthe private sector, domestic consumption, foreign direct investment, andinfrastructure investment. Meanwhile, regulation bottlenecks in land will alsobecome growth momentum if they are removed, he added.

Regarding the building of a developmentfacilitating Government, Do Thanh Huyen, PolicyAnalyst on Public Administration Reform and Anti-Corruption atUNDP Vietnam, said the administrative apparatus should be streamlined while theissued policies must be seriously implemented. Additionally, State agenciesshould listen to and regularly hold dialogue with the public while monitoringactivities of all-level authorities.-VNA