Vietnam is fully aware that it can become to fall in the middle-income trap, said the Vietnamese Finance minister Vu Van Ninh. When the country becomes a middle-income nation, the official development assistance capital will gradually be reduced and commercial loans will increase correspondingly.
During at the 44th annual Asian Development Bank meeting, the Vietnamese Finance minister said that Vietnam’s economic growth target for the period 2011-2020 would rely on the development quality and the country would aim at speeding up production effectiveness.
Accordingly, in the 10 years from 2001-2010 with average growth of 7.2 percent per year, Vietnam’s economy relied heavily on the expansion of investment, increasing scale in width and increasing capital growth. But with the development strategy in 2011-2020, the growth target will be at a reasonable level. Economic growth expected from 6.5 percent -7 percent per year is considered appropriate and sustainable.
Vietnam will take steps to restructure the economy, the monetary and banking systems with higher quality, said Ninh.
According to Ninh, the government also set out the strategic use of financial resources, including resources from the country, with the goal of domestic mobilisation through tax policies towards reducing the average level of raised capital per unit of product, but extending the subjects of mobilisation.
“Next is a strategy of sustainable debt, limiting less concessional loans or commercial loans for infrastructure investment. Vietnam will select investment projects to effectively use their resources. These are measures to help Vietnam’s economy from the middle income trap,” said Ninh.