Vietnam’s economic growth would be 9 – 10% if resources used efficiently

With the total social investment to GDP over 30%, the country’s economic growth would be equivalent to that of Japan and South Korea during their economic thriving periods, government news portal cited opinion from Dr. Nguyen Dinh Cung, former director of the Central Institute for Economic Management.

The efficient allocation and utilization of resources should be the core issue when the government implement economic restructuring, because of the coefficient of using the investment capital has been an improved in recent years.

However, the economy needs 6 dong investment to create 1 dong growth while South Korea used to need 4 dong and Japan with just 3 dong.

The key of reform should be improvement of resource use efficiency.

Referring recent article written by Prime Minister Nguyen Xuan Phuc, the expert stressed that the government should give priority to the development of the sale and rental of land-use rights for farmland market.

Photo: chinhphu.vn

“We need to build legal framework for operation of land-use rights market instead of just developing the real estate market,” he said, adding developing the market for land-use rights is the best tool to protect benefits for farmers.

Improving the efficiency of public investment and State-owned enterprises is important for better economic growth. State-owned enterprises are holding huge state capital under disposal.

Market-based motivation and rightful benefits of related parties are key to utilize this resource efficiently, he said.

The Government has made efforts to ensure the safety of business operations of private sector. Additionally, it is necessary to continue to improve the efficiency and reliability of the justice system.

Vietnam should build trust from the business community towards the judicial system. In the latest Doing Business of the World Bank, Vietnam has not seen improvement in criteria of business bankruptcy and contract dispute resolution.

Source: VGP