Leader Talk

Reform political apparatus, experts say

June 16, 2017 | 09:45 AM GMT+7

A revitalised Government is necessary but not enough to achieve targeted economic breakthroughs. Only a thorough reform of the whole political system can do it, experts said at a conference yesterday.

The conference was jointly organised by the Ministry of Planning and Investment and the World Bank. Photo: Bnews.vn

The conference attracted Vietnamese and international experts as well as high-level officials from Malaysia, Poland and France who discussed challenges facing the Vietnamese economy. They also offered recommendations on forging a State that proactively facilitates growth.

Prime Minister Nguyen Xuan Phuc and his cabinet introduced the ‘constructive Government’ concept last year.

While a precise definition has not accompanied the phrase, it is roughly understood as a State that promotes sustainable economic development through a pro-business policy.

Since the Government implements policies set by the Communist Party, facilitating growth is not just about the former. It also involves the Party and the whole political system, said former Planning and Investment Minister Bui Quang Vinh.

“The Government can’t resolve everything. It needs support from higher levels like the Party Central Committee. Government reform is good, but not good enough,” he added.

Nguyen Dinh Cung, director of the Central Institute for Economic Management, said that over the last three decades since the Doi moi (renewal) process was launched, the Government had facilitated less and restrained more.

The Doi moi reform in the late 80s and the early 90s introduced a market-oriented economy in place of a subsidy-based one. However, the political system went through minimal reforms despite major changes in economic development.

“This system no longer works effectively. There will be no constructive State if no political reform is carried out,” he said.

“There is a major problem in Viet Nam, which is the absence of a commercial class independent from the State. The way Doi moi unfolded in Viet Nam didn’t really solve the problem,” said Jonathan Pincus of Indonesia’s Rajawali Foundation.

“It is a structural obstacle to creating a constructive State in Viet Nam.”



Financing Southeast Asia’s energy transition

Financing Southeast Asia’s energy transition

Leader Talk -  2 month

The energy transition is bringing forth new challenges, particularly in refining financial systems.

Few countries are better placed than Vietnam for consistent robust growth

Few countries are better placed than Vietnam for consistent robust growth

Leader Talk -  2 month

Alex Hambly talks about investment opportunities in Vietnam following his appointment as chief investment officer (CIO) of VinaCapital.

The secret to employee retention

The secret to employee retention

Leader Talk -  2 month

As Furama-Ariyana Danang international tourism complex has just won the “Best Companies to Work for in Asia” HR Asia Awards 2024, TheLEADER talked with its HR and training director Nguyen Thi Minh Tam to find out more.

Young leader of Timor-Leste: Vietnam offers valuable lessons for growth

Young leader of Timor-Leste: Vietnam offers valuable lessons for growth

Leader Talk -  3 month

The young leader of East Timor emphasizes that Vietnam has a lot of development experience that East Timorese businesses can learn and cooperate with.

May the draft amendment of VAT law demotivate Vietnam’s export growth?

May the draft amendment of VAT law demotivate Vietnam’s export growth?

Leader Talk -  3 month

A prominent issue for many Vietnamese businesses concerns the proposed narrowing of the 0 per cent VAT rate for export services.

Vietnam in a new FDI shift

Vietnam in a new FDI shift

Leader Talk -  6 month

HSBC discusses Vietnam's role in supply chain relocation and outlined essential strategies for the country to enhance its appeal for attracting and retaining FDI.