The Government plans to focus on further developing the nation’s private sector during the next five years, as Viet Nam’s economy sets its sights on ambitious targets.
Minister of Planning and Investment Vo Hong Phuc said that during the next five years, social investment was expected to reach between US$130-140 billion. Of that amount, 35 per cent would come from foreign investment and the remaining 65 per cent from domestic investment, with between 53 to 54 per cent coming from contributions from the private sector.
Last year, total social investment stood at VND 326,000 billion (US$ 20.5 billion), of which 17 per cent was sourced from the foreign- invested sector, 32 per cent by the private sector and the rest by the State.
In the past 15 years, Viet Nam achieved an average GDP growth rate of 7.5 per cent per annum – a solid foundation from which Viet Nam could work on reaching the target of an 8 per cent growth rate for the next five years.
The recently concluded plenum of the Party Central Committee reported that a growth rate of 8 per cent was ambitious but achievable.
Minister Phuc said Government investment would focus on areas neglected by private investors.
Besides economic development, the Government planned to address key social and environmental issues.
Minister Phuc said internal strength, especially among the population, was the decisive factor in securing a high and sustainable growth rate. This required the government to issue policies to encourage all economic sectors to become more involved in national development.
Phuc said last year’s publication of laws on tendering could be considered as a catalyst for the effective use of capital from the State and enterprises. The enterprise law and investment law had provided a legal ground for further tapping of Viet Nam’s investment potential by international investors. When the two laws came into effect on July 1st, 2006, they would be an effective tool in mobilising the private sector to work on national economic development, said Phuc.
Aiming at the development of a fair and workable legal environment, the Government had initiated many measures to facilitate the implementation of legislation relating to land, sea ports, customs and administrative procedures. The devolution of power from the central government to local governments had proven to be very successful, said Phuc.
The Government’s administrative reforms had resulted in some useful case studies, said Phuc. Vinh Phuc, a landlocked province in the north, had succeeded in attracting substantial investment. The provincial leadership had adopted a "one stop shop" for investors with the Department of Investment and Management Boards of Industrial Parks as the focal point in co-ordinating and promoting investment.
Phuc also attributed success in attracting investment to the province in the strategy of getting investors involved in the process of formulating policies right from the beginning.
Phuc said Ha Noi was currently learning key lessons from Vinh Phuc Province.

Source: Vietnamnews, 6/3/2006