Vietnam’s economy needs to grow by at least 7% per year to guarantee the nation can repay its debts as public debt remains a chronic headache, said a financial expert.
At a recent meeting between overseas Vietnamese and Prime Minister Nguyen Xuan Phuc
, Nguyen Tri Hieu suggested the government restrain from rolling over debts to prevent them from piling.
The government should consider setting a ceiling in absolute terms for public debt after the U.S. government’s model, instead of fixing it at 65% of GDP
currently, he added.
Notably, Hieu recommended allowing overseas Vietnamese to establish a bank, named Overseas Vietnamese Bank, to tap on their resources.
Vietnamese-American Pham Do Chi praised the prime minister’s statement on building a constructive government and the carrying out a second renovation. Vietnam initiated its doi moi policy in late 1980s, leading to rapid growth and significant economic integration.
The institutional reform should focus on ensuring fairness and creating equal access for both state-owned and private enterprises, Chi noted.
Chi suggested the government set up a hi-tech center, Saigon Silicon City, in Ho Chi Minh City
in 2018, and turn the southern metropolis into a financial hub in 2020, so as to give a boost to local economy that now heavily relies on low labor cost, mining and external trade.
The National Assembly has approved a socio-economic plan under which the economy would grow 6.5-7.0% and public debt would be curbed at 65% of GDP in the upcoming five years.