It is necessary to take synchronized measures to curb inflation, stabilize macro economy and mobilize all sources to attract both domestic and foreign investors to develop socio-economic infrastructure.

 

Deputy Prime Minister Vu Van Ninh made the statement at the Vietnam Business Forum 2012 held in Hanoi on December 3.

Addressing the forum themed “Strengthening the dynamism of Vietnamese economy”, Deputy Prime Minister Vu Van Ninh said thanks to the Government’s drastic measures, Vietnam has maintained its economic growth at around 5.2 percent with inflation rate dropping to a single digit. A decrease in budget spending coupled with lowering interest rates helps promote the liquidation of the banking system. However, there remain challenges for the national economy’s sustainable development. The Vietnamese Government has directed relevant ministries to press ahead with the restructuring of commercial banks, especially weak banks as well as economic groups, state corporations, Minister Ninh said.

He said they should consider businesses’ reasonable and correct recommendations to perfect the investment environment.

At the forum, representatives from both local and foreign business associations said that business confidence has dropped remarkably in recent times. According to a survey from the Vietnam Chamber of Commerce and Industry (VCCI), nearly 8,200 private businesses and more than 15,000 foreign businesses decline to expand their operations in the near future.

VCCI President Vu Tien Loc said that apart from stabilizing the macro economy and creating a favourable investment environment for businesses to access credit sources, the government will help small and medium-sized enterprises improve their management skills and exploit human resources.

The forum was co-organised by the Ministry of Planning and Investment, the World Bank and the International Finance Corporation./.

CPV/VOV