Greater self-reliance key to weathering economic storm

Hanoi (VNA)- Addressing the impacts of the global financial crisis on the national
economy was the topic at a seminar which took place in Hanoi on January 9,
attracting the participation of senior experts representing domestic and
international capital funds.

Opening the seminar, Head of the National Assembly's Economic Committee Ha Van Hien
admitted that the nation's economic slow-down and slump in exports have driven many
businesses to the wall and led to huge numbers of workers being laid off, despite
the Government's recent eight-point solution package that had, to some extent, been
effective in minimising these effects.

In response, Jerome Buzenet, a senior advisor in law from the International Law
Company called upon Vietnam to increase its competitive edge within the
international market in an effort to ensure the success of its socio-economic
development plans.

He added that Vietnam may also reduce the fallout from the global financial
downturn by stimulating national economic growth, particularly by creating better
conditions to allow the development of the private economic sector.

If Vietnam makes this effort, it would continue to post steady growth and could
reduce its dependence on foreign economies while still reaping the benefits of
foreign investment, foreign trade and foreign loans, said Buzenet.

In an effort to stabilise the national financial markets, Dragon Capital Group Ltd
Director Dominic Scriven pointed out that the country should make decisions
regarding three major problems; firstly, whether state loans should replace loans
from the private economic sector or not, secondly, a choice between inflation and
recession, and finally whether the economy should be a market economy or
state-regulated.

Vietnam should take four steps to solve these problems, namely fully maximising
all domestic financial sources, granting the State Bank full authority to make
decisions on monetary policies, ensuring stable interest rates so as to prevent
major financial shocks to the market and moving towards the auctioning interest
rates, he suggested.

Bao Viet Securities Company Ltd CEO To Hai voiced concern over the fate of small
and medium-sized enterprises (SMEs) which are struggling for survival due to
competition with stock market giants, which represent the major investment channels
for enterprises.

Widespread failures of SMEs will lead to a massive increase in the rate of
unemployment, the securities expert predicted, and suggested that the Government
allow the sale of shares to the public at fixed rates and the appointment of
specialist stock market advisors, including strategic investors, he
concluded.-Enditem