Vietnam should focus on macro-economic stability, structural reform, infrastructure and social welfare if the nation wants to make the leap to the next phase of development, said an IMF official.
Director of the International Monetary Fund (IMF)’s Asia-Pacific Department Anoop Singh made the suggestions while delivering a speech at the Hanoi National Economics University’s gathering entitled “Vietnam and Asia – Climbing up the economic ladder” on March 23.
Although the considerable economic achievements of Vietnam and Asia have brought about considerable poverty reduction, policy challenges remain, said Singh.
In terms of stabilising the macro-economy, he noted a large deficit and government debt, high credit growth and inflation as well as low foreign currency reserves in some countries.
It is important to further improve policies and the financial sector’s transparency, the IMF official said, noting that priority should be given to structural reform to enhance competitiveness and assistance for developing Asian nations to join the global and regional trade networks.
The development of financial markets will ensure the effectiveness of the distribution of capital resources and provide cost-saving measures to increase household income, he added.
He went on to say that investment in infrastructure fill major gaps in terms of traffic, energy and telecommunications infrastructure in Asia will help tap existing potential, increase labour productivity and fight poverty.
The promotion of social welfare should be targeted to protect the poor and vulnerable and enhance their access to basic public services, including healthcare, he added.
According to Singh, Asia is leading the world in economic recovery and heading towards strong future development.
Vietnam has been successful in overcoming the crisis thanks to government policies to support the economy, he said.
However, he emphasised the importance of ensuring macro-economic stability for the sustainable recovery of Vietnam ’s economy./.