The Central Institute for Economic Management (CIEM) held a workshop in Hanoi on June 1 to look into bottlenecks in Vietnam’s development post-COVID-19.

CIEM Director Tran Thi Hong Minh said Vietnam’s economy was greatly affected by the coronavirus outbreak in the opening months of 2020. The country has, however, basically brought the pandemic under control and has now begun its economic recovery.

Now is the time to focus on bottlenecks in economic development to identify solutions, she said, noting that such bottlenecks existed prior to COVID-19 breaking out.

Nguyen Anh Duong, head of the CIEM’s division for macro-economy, said international organisations have downgraded global growth projections, including for Vietnam. Many forecast that the pandemic’s impact on the global economy could be even more serious than that of the global financial crisis and may linger for some time.

He noted that Vietnam’s economic growth slowed in the first quarter compared to the same period in 2010-2019. Exports and the trade balance remained positive in the opening months but will be hard to maintain after April.

Efforts by domestic businesses are not sufficient in the current context, and it is necessary to adopt a friendly approach to FDI, he believes.

Looking at bottlenecks in post-COVID-19 development, Duong pointed to those that are relevant to institutional quality, e-Government building, the use of public resources, and inclusive and sustainable growth.

He stressed matters relating to the treatment of investors, noting that they are not simply eliminating unnecessary procedures. To effectively channel FDI into targeted sectors, Vietnam must issue standards on investment attraction.

Meanwhile, Dau Anh Tuan, Head of the Legal Department at the Vietnam Chamber of Commerce and Industry (VCCI), underlined the need to push ahead with substantive administrative reform.

He said the country has made great strides forward in administrative reform but has also encountered more difficulties, such as in dispute settlement and asset protection. Reform must therefore be carried out more firmly and in a way that creates optimal conditions for businesses and does not simply tackle the difficulties they face.