Tin mới
Investment inefficiency causes high inflation rate (21/02)
06/08/2010 - 17 Lượt xem
| Efficient investment can speed up a country’s economic growth while inefficient investment practices can lead to a high inflation rate. |
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The turmoil of Vietnam’s economy, which began in the late 70s and early 80s, led to the slowdown of the gross domestic product (GDP), an increased inflation rate, and a high unemployment rate. Inefficient investment was one of the main reasons for the turmoil. Therefore, we should constantly check investment efficiency while seeking the cause of the currently high inflation rate. The efficiency of Vietnam’s investments currently remains fairly low compared with other countries around the world due to Vietnam’s out-of-date technical equipment, high business costs and low-quality human resources. There is a large amount, moreover, of money being pumped into gold and property, which plays a part in slowing down the economy’s growth. The state-owned sector’s investments, meanwhile, are also not efficient compared with the private and foreign sectors. Last year, the state-owned sector’s investment value accounted for 43.3 percent of the country’s total investment. The government should, therefore, innovate its investment policies, keep a closer eye on state-run investment, and reduce property and building material prices. |
