Minister of Planning and Investment Bui Quang VinhRenewing economic growth model and restructuring the economy as mentioned by the resolution of the 11th National Party Congress is an urgent task, says Minister of Planning and Investment Bui Quang Vinh.
Minister of Planning and Investment Bui Quang Vinh
While presenting a draft project to restructure the economy to the National Assembly on May 21, Minister Vinh emphasized the importance of the project to improve the use of social resources and the competitiveness of the economy from now until 2020.
Vinh expressed hope that this will help form a more suitable and dynamic economic structure with higher competitiveness and greater growth, laying a firm foundation for the sustainable development of the economy.
The project is also aimed at maintaining economic growth at a suitable level, stabilizing the macroeconomy, effectively settling social welfare issues and promoting developments in various fields, especially in high technology, in order to build an independent and self-reliant economy and improve the nation’s status in the international arena, he said.
In the short run, Minister Vinh said, the project will be focused on restructuring the financial market, investment, and State-Owned enterprises (SOEs).
He said the restructuring of the financial market with a focus on commercial banks and financial organizations, is expected to reduce risks in the financial system, facilitate its sustainable development and improve its role as a financial intermediary, that will contribute to restructuring other fields of the economy.
In the meantime, the restructuring of investment will focus on renovating the mechanism for the mobilization, allocation, management and use of social investment capital, maintaining a suitable ratio of public investment in total social investment, mobilizing capital resources from other economic sectors, and improving investment efficiency.
The project also defines priority fields that will receive State investment, including important projects, those for public interest, and infrastructure projects in remote and disadvantaged areas and offers opportunities for private investment.
Regarding the restructuring of SOEs, it aims to speed up the equitization of SOEs, diversify the ownership in SOEs, withdraw State budget in some SOEs, and apply modern management in these businesses.
The Economic Committee of the National Assembly has proposed building a restructuring project with a focus on three breakthroughs in institution, human resources and infrastructure as mentioned in the 2011-2020 socioeconomic development strategy and the 2011-2015 socioeconomic development plan.
At a May 21 interview with a VOV reporter about the project, Dr Nguyen Dinh Cung, Deputy Director of the Central Institute for Economic Management, said that the project clarifies the role of businesses in the process of economic restructure.
Economist Nguyen Dinh Cung
Talking about the application of market-based principles in SOEs, Dr Cung said it is necessary to abolish policy preferences granted to SOEs and force them to compete with other sectors instead of operating under favourable conditions to avoid risks.