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Economy Planning
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2000-06-18 19:35:00-04
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Mid-week Meetings will bring Pressure on Vietnam for Reforms
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Foreign and domestic investors to unleash frustration on Wednesday, donor countries and institutions meet on Thursday
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In a country with tremendous potential but a dawdling Communist leadership, intense pressure for reform will be brought to bear this week in Vietnam. Foreign and domestic investors are expected to unleash their criticisms at a private sector forum in Ho Chi Minh City on Wednesday, while donor countries and institutions will review reform efforts on Thursday. Vietnam has made significant progress in exports, rising industrial production, further poverty reduction and a large amount of business-friendly legislation. However, apparent foot dragging on implementation on reforms has led to a negative climate for foreign investment as it has fallen from US$2.8 billion in 1996 and 1997 to $500 and $600 million last year. The problem is that other countries in the region have improved their investment climates faster than Vietnam. On Friday, US Trade Representative Charlene Barshefsky warned Vietnam that it would be 'left behind,' particularly since China had made major market reforms. Progress is being looked for in a number of areas. First, there have been power and oil deals on the table for years, which have not been concluded. A major consideration is internal politics with the Ninth Congress of the ruling Communist Party coming up in March. Officials are afraid to make commitments before the congress. The area Vietnam particularly needs to make further improvements in is further reform of a non-performing loan rich financial system to create public confidence and mobilize investment resources.
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