A workshop to launch the Vietnam Competitiveness Report 2010 was held in Hanoi on Nov. 30 with the participation of Prof. Michael E. Porter from the Havard Business School.
The first national report provides data, analysis and specific recommendations to help policymakers map future policy directions.
Over the past two decades, Vietnam advanced significantly. From a closed, concentrated planning economy it became an active part of the global economy, benefiting people’s life with improvements in living standards and a reduction of poverty, the report said.
The country’s average per capita income has reached the low-medium income level, but the absolute income level is still lower than that of over 100 other nations in the world. The development gap among regions is increasing.
In comparison with other countries, Vietnam’s labour productivity is lower and the increase in labour productivity is mainly from a rise in investment and movement of the labour force from agriculture to the processing, manufacturing and service areas.
The country’s growth is attributed mainly to the door-opening renewal policy, the report said, adding that structural deficit in the State area hinders fiscal policy.
Deputy Prime Minister Hoang Trung Hai hailed efforts of involved agencies in fulfilling the country’s first-ever report on competitiveness, affirming that the report would serve as a basis for the formulation of plans and solutions in the next decade.
Ministries and agencies will continue to study and formulate action programmes and strategic plans for each sector. They will study proposals in the report and then make submissions to the Prime Minister, he said.
The Government always listens to businesses in order to raise national competitiveness, the deputy PM said.
In his speech at the workshop, Prof. Michael Porter emphasized three groups of most important issues for Vietnam that needed solutions, including an imbalance in the macro economy, bottlenecks on the micro economy (i.e. low disbursement and pervasive impacts of FDI), as well as fundamental elements of competitiveness (i.e. added value, productivity).
He recommended Vietnam take a synchronous, effective approach method in making macro-economic policies.
The country needs to set up a central agency in charge of monitoring and reporting the fiscal situation of government agencies and state-owned enterprises, and economic development, according to the professor.
It is necessary to establish a regular mechanism to monitor and audit public spending, strengthen quality and effectiveness of public debt management and clearly identify the role of the national assembly, the government and the central bank in governing the monetary policy, as well as the policy’s objectives.
He suggested the strengthening of financial market monitoring management through the central bank as well as the function and operation of the national monetary financial policy council.
In addition, he also suggested a focus on education, enhancement of labour skills, development of infrastructure, state-owned business governance and establishment of the national competitiveness council.
The workshop was jointly held by the Government Office, the Central Institute for Economic Management (CIEM) and the Singapore-based Asian Competitiveness Institute (ACI)./.
(VNA)
