Unfavorable economic factors concern NA deputies

Despite agreeing that the economy has had some achievements, National Assembly (NA) deputies still expressed their concerns over many unfavorable factors.NA deputies on Thursday discussed in groups socioeconomic situations, development orientations and economic restructuring.

A report of the Government presented in front of the NA indicated that macro-economic situations were virtually stable, inflation was under control, the economy was recovering, economic restructuring achieved initial good results, social security was ensured and life was improving.

According to some NA deputies, the Government is quite optimistic about the country’s economic situation. Deputy Bui Thi An said that the living quality of the people should be used as a measurement of socioeconomic development.

Meanwhile, deputy Nguyen Dinh Quyen mentioned issues concerning government and public debt which are staying at alarming levels. “I am really concerned over the budget allocation,” he said.

According to deputy Truong Trong Nghia, Vietnam is struggling to escape from the old growth model in which local enterprises mainly outsource products and use cheap labor. This has lasted for a long time but there has not been a replacement solution.

“Can Vietnam reach a new level, have a new growth model or will it remain low in the coming years?” Nghia questioned.

Deputy Do Van Duong said that the Government’s report was good but some points were impractical. He added that although the Government gave many solutions, bad debts and public debts keep rising and the property market remains quiet.

Sharing the same opinion, deputy Truong Trong Nghia said: “While we insist on reducing spending and preventing massive investments, we lack strong actions.”

Regarding the economic restructuring, many deputies proposed setting up a specialized national committee having the involvement of the NA, consulting institutions and independent experts.

According to Nghia, it is not easy to let groups self-restructure as the restructuring will affect benefits of laborers, the groups themselves and subsidiaries. “There needs to be an iron hand to rearrange the organization of the groups,” he said.

Deputy Tran Du Lich added that the slow restructuring resulted from many reasons such as different points of view and hesitation. “How can the restructuring be fast when changes in institution and policy to highlight the role of the State and the State economy are happening slowly,” Lich said.

Talking to the press on the sidelines of the NA discussions, Deputy Prime Minister Vu Van Ninh affirmed that debts of Vietnam Shipbuilding Industry Group (Vinashin) were not shifted to the Government and the Government only guaranteed to help the group borrow money and pay debts. The Government guarantee is a commitment assuring foreign investors. Vinashin still has to be responsible for its debts, Ninh added.