Vietnam must address three hurdles to economy: VEPR

Tuesday, 2018-01-16 18:53:39
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NDO - Vietnam's macroeconomy is forecast to continue its stable growth in 2018 but it should overcome three existing hurdles for further development, according to a report released by the Vietnam Institute for Economic and Policy Research (VEPR).

The VEPR's quarterly report featuring an independent assessment on Vietnam's macroeconomic policies was announced on January 16.

The report stated that the stable macroeconomy, along with the institutional reform pursued by the government in order to improve the investment environment, will continue to promote its effectiveness and support business activities in 2018.

However, many inherent problems in the economy have yet to be thoroughly resolved and will remain a drag on the economy.

The VERP pointed out the first barrier to the economic growth which is the low labour productivity in comparison with other countries in the region. Vietnam's productivity is equal to only one fourteenth of that of Singapore, one sixth of Malaysia and one third of Thailand.

In addition, increasing budget deficit and public debts continue to be a serious problem hindering the national economy. While the expenditure for public investment remains limited, high regular spending will impose a burden on the State budget, the report stated.

Vietnam's dependence on the world economy and the foreign invested sector will also create uncertainties for the economy, particularly in the context of emerging risks related to geopolitics, trade protectionism, and changes in global science and technology.