Nhan Dan Online - The Vietnamese economy has overcome the toughest period, affirmed Deputy Prime Minister Nguyen Sinh Hung in his speech opening the second Vietnam Economic Forum entitled "Sustaining the growth" in Hanoi on September 19.

The forum, jointly organised by the Ministry of Planning and Investment, the Vietnam News Agency and the Asia News Network (ANN), attracted some 600 domestic and foreign delegates to discuss ways ahead for the nation’s economy.

In the first eight months of this year, the price growth has been gradually reduced, the economy has been gradually stabilised, and social security ensured, said the Deputy PM, adding that Vietnam's economic growth this year is estimated at 6.5-7%. However, the ways ahead to overcome difficulties to ensure sustainable growth are still tough.

According to the Deputy PM, the biggest challenges to Vietnam currently include human resources development, infrastructural facilities development and economic stability. The forum has been an opportunity for Vietnam to have more information and long-term vision to deal with those challenges.

The government of Vietnam is committed to seeking all measures to help domestic and foreign investors so that they, together with the government, will iron out the difficulties, thus contributing to raising the economy's strength, ensuring sustainable development and bringing mutual prosperity for countries in the region and the world over.

Secretary General of the United Nations Conference on Trade and Development (UNCTAD) Supachai Panitchpakdi analysed the impacts of the economic crisis in the US to trade and development in Asia, including Vietnam.

According to Mr Supachai, the financial crisis in the US will have negative impacts on the liquidity of the financial market as well as the growth of exports and foreign direct investment flows into Vietnam.

In order to reduce these impacts, said Supachai, Vietnam should diversify its export markets, increasing trade especially with other developing countries, rather than depending on the traditional markets.  He also said the Vietnamese government needs not to worry much about the possibility of a decrease in foreign direct investment, on the contrary to pay much attention to the quality of FDI projects while attracting foreign investment.

Noritaka Akamatsu, senior financial economist for the World Bank in Vietnam also shared the same point. He said Vietnam was successful in attracting FDI. However, too much FDI attraction has also been a challenge to Vietnam. He suggested that Vietnam should pour more investment in infrastructural facilities as well as developing exported-oriented production sectors.

At the forum, domestic and foreign investors put various questions to Deputy PM Nguyen Sinh Hung and other speakers. In his reply, the Deputy PM said that reforming State-owned enterprises through equitistion was the way that Vietnam had selected. From now to 2010, Vietnam should continue to equitise major State-owed enterprises in industry, serives and transport sectors.

Deputy PM and Minister of Education and Training Nguyen Thien Nhan also delivered a speech on changes in human resources training for development, one of the challenge of the Vietnamese economy.  Vietnamese universities and colleges will not only focus in teaching English but also teaching other subjects in English so that Vietnamese students, after their graduation, can work effectively in an English-speaking environment. Deputy PM Nhan also said that Vietnam has incentives such as tax reduction to encourage the development of universities.

By Thu Ha