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Vietnam should dwindle work intensive

Vietnam should change from work-intensive to more capital - and skill-intensive manufacturing, economists told a seminar in HCM City yesterday.

Prof James Riedel, who shows worldwide financial aspects in the US's Johns Hopkins College, stated Vietnam might be among the developing world's quickest growing nations as praised by multilateral agencies, consider 2006 its rate of growth continues to be lower plus much more unstable.

Vietnam should contend with other nations based on its growing human capital and technology.

Pham Minh Tri, chair from the HCM City Economic Science and Management Association, stated: "If your country's exports derive from work, it won't improve competition or quality of growth.

"The exports should be according to technology, understanding, and good business management."

Besides, allocation of assets is not effective leading to inefficient public investing which makes up about 1/ 2 of all gross capital formation in Vietnam, he stated.

Talking about the nation's economy, Riedel stated inflation within the last six years have been volatile, with huge capital inflows and credit growth putting pressure.

While Vietnam attempted to keep nominal forex rates at stable levels, inflation triggered the actual effective exchange rate to increase, forcing the federal government to frequently depreciate the currency.

"Macroeconomic stability can't be accomplished when the country has numerous targets for example stable exchange rate, low inflation, and growth simultaneously,Inch he cautioned.

To enhance quality of growth, efficiency, and competition, economic restructuring should goal to produce industries with greater value addition and productivity according to enhanced efficiency of resource use and allocation, he stated.

Finance must be allotted in right places to avoid wastage of human assets and capital and increase profits.

Vietnam should search for experience using their company nations and areas like Taiwan, Korea, and China for sustainable growth and development of its economy.

The seminar was organized through the Leadership and Management Science Research Institute, HCM City Business Association, and College of Financial aspects and Law.


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