The safe level of public debt depends on each country’s economic development and GDP growth, he said, noting that Vietnam’s debt will no longer be a worry if the country maintains its annual GDP growth of 7-8 percent.

The Japanese Ambassador suggested the country conduct tax, monetary and financial reform to increase Government revenues.

He also emphasised the necessity of reworking the management of state-owned enterprises, so that these firms can pay more taxes and bring Vietnam greater economic benefits.

Commenting on Vietnam’s North-South express railway project, which has attracted public attention recently, Sakaba said that Japanese experts have found a close link between the express railway system and economic development, after conducting a survey on Vietnam’s transport system.

According to Sakaba, this railway route will likely help develop urban areas and increase economic benefit to the regions along the route from Hanoi to HCM City.

The survey shows that not many passengers will choose this express railway for travelling between Hanoi and HCM City, as it will take around six hours by this express train compared with less than two hours by plane. However, potential passengers for this route are those who travel short distances between Hanoi-Vinh, Vinh-Hue and Vinh-Da Nang, the conductors of the survey said.

The study also found that the express railway will be profitable by 2030 to 2035, when the central province of Thanh Hoa and the central cities of Vinh and Danang will have developed into larger population centers with higher living conditions and more demand for transportation and commerce.

Based on the survey, Japanese Transport Minister Seiji Maehara, who visited Vietnam in early May, said it will be more suitable to build the express railway through the short distances between these central cities than the whole route, Ambassador Sakaba commented.

He stated that the Japanese government is willing to cooperate with Vietnam in building this railway system. However, he said, the form of cooperation Japan will provide depends on a feasibility study that is underway and will be completed in the next few years. 

Source: Vietnamnet