Vietnam Economic Report 2012 announced

(VOV) - Vietnam’s economic growth rate in 2012 is likely stay at 5.1 percent, the lowest ever since 2000 while the inflation rate will reach 6.2 percent.

• Vietnam to cut rates in two weeks: HSBC

• Vietnam’s economy grows at 5.7 percent, WB forecasts

According to the Vietnam Annual Economic Report 2012, released in Hanoi in May 24, the current growth model is highly dependent on ineffective State-run enterprises, which weakens economic effectiveness, according to the Vietnam Annual Economic Report 2012, released in Hanoi on May 24.

Director of Vietnam Centre for Economic and Policy Research (VCEPR), Dr. Nguyen Duc Thanh said the basic question of the macro-economy is to deal with bad debts in the commercial bank system and create conditions for the market to restructure the enterprises, with the support of bankruptcy and merger and acquisition procedures.

The report, compiled by the (VEPR), said that Vietnam should have a clear view of the new development model and suitable support mechanisms to successfully reform the economy and overcome challenges posed by restructuring.

It provides analysis and comment on three economic restructuring programmes.

It also focuses on public investment, state-owned enterprises and commercial banks, as well as difficulties and shortcomings during the implementation.