Prime Minister gives businesses an introduction to Viet Nam’s economy

Prime Minister Nguyen Tan Dung pledged Viet Nam to provide the best environment possible for investors in Ha Noi yesterday.

He also assessed and previewed the country's economy for international business representatives and answered their numerous questions.

All were participants at the Business Roundtable at the National Convention Centre.

The Prime Minister emphasised that such discussions helped business and the Government better understand each other and co-operate in settling any differences to their mutual benefit.

Questions and Answers

Nokia Siemens Asia-Pacific Network's Christian Fredrikson:
Question: We see broadband growth as a key to driving infrastructure and economic growth. How do you see us as infrastructure builders supporting you, the Government and industry in Viet Nam? How do you see us supporting in making this continued broadband growth happen, to have broadband in every house by 2015?
Answer: Telecommunications development has high priority in Viet Nam. The Viet Nam Government is determined to make the society at home with information technology. The key to this target is to develop infrastructure of broadband and mobiphone.

It's a pity that Nokia is just selling its mobiphones in Viet Nam without having invested in infrastructure. It is hoped that Nokia will invest here soon. Viet Nam has nine telecommunication companies that would be equitised.


General Electric South East Asia President Stuart Dean:
Question: Can you be more specific on how you plan to build infrastructure to support yearly economic growth of 9 per cent?
Answer: Viet Nam will focus on infrastructure, particularly transport, energy and information technology.
More money will be spent on express highways, railways and subways in Ha Noi and HCM City. Particular attention will be given to aviation to meet increasing market demand.
Air transport has risen by 18-25 per cent a year over the past 20 years. We have signed to buy aircraft from Boeing and Airbus, but not enough. Viet Nam airline is now looking to General Electric.
The development of port and harbours will also be given attention and the Government will encourage foreign investment in information technology.
Energy will be developed together with saving programmes to ensure power for the economy.
The industry has increased by a yearly 12-15 per cent and Viet Nam generated a yearly 60 billion kWh by the end of last year but will need about 115-120 billion kWh by 2010. Viet Nam encourages investment in the industry in any form BOT or BT.


Economist Intelligence Unit Asia-Pacific Editorial Director Charles Goddard:
Question: How much progress do you think the Government has made against corruption and can you give some assurance to foreign investors that this is going to remain a strong priority?
Answer: Corruption is not confined to Viet Nam. It's present in all countries. Corruption is a challenge not only for Viet Nam's development but also the Government's existence.
We affirm that we will prevent and push back this evil. Nothing can thwart our determination. But the task is difficult and complex.
We will be persistent and act in accordance with the law. We will win the fight because we have the support of the people and the Communist Party of Viet Nam.
We have recorded some initial results and have won people's belief.
Viet Nam will now focus on:
Completing the legal system in compliance with the market economy so as to make all policies and regulations transparent to all people because that's the best way to fight against corruption;
Focus on administrative reform and properly settle all cases of corruption; and
Gradually improve the living standard of wage earners whose salaries are very low because the economy is still small and the budget still limited.
Question: Can you make comment about the progress of equitsation as you see it and whether or not you see it slowing or moving forward more quickly?
Answer: Equitisation is fundamentally completed.
The number of State-owned enterprises fell from 6,000 in early 2001 to 1400 last year. One hundred and four State-owned corporations will be equitised in the next three years.
These corporations will be equitised in accordance with the laws of the market. They will be listed on stock exchanges within and beyond Viet Nam.
The stock market is young but capitalisation over the past two years has accounted for 40 per cent of GDP. This rapid increase of the stock market was due to the equitisation of State-owned enterprises.
Five State-owned banks will also be equitised beginning with the Bank for Foreign Trade of Viet Nam.
All telecommunication enterprises will also be equitised.
Equitisation programme has been proceeding efficiently.
Almost all State-owned enterprises including corporations and commercial banks will be equitised in 2009 and 2010.
Most of the equitised enterprises have been doing well.
Bookmark and Share