(VOVworld) – A recent government report says Vietnam’s economy last year and 4 months of this year was more stable and inflation was curbed. But, according to the report, more measures are needed, including those to remove business obstacles and improve competitiveness.

Amidst the current economic difficulties, the government has managed to stabilize the macro-economy. Government resolutions to support businesses and markets and settle bad debts have paid off. So far this year, inflation has been controlled and growth in the first quarter exceeded growth in the same period last year. Foreign reserves increased, exchange rates were stable, and exports grew steadily. In addition to short-term solutions, the government has been taking aggressive steps to effect major changes. Economist Cao Sy Kiem says: “All measures to ease difficulties and support markets have been implemented and changes are seen. The top issues are inventories clearance and demand stimulus. Non performing loans and property market problems require breakthrough solutions to reignite growth”.

But enterprises must improve their added values and competitiveness, particularly theie ability to make profit without government support. This is vital to Vietnam’s integration into world market.

Enterprises are renewing themselves by restructuring their production, investing more in science and technology, streamlining their operation, and checking their operation more effectively. There have been encouraging signs, like the Vietnam-America Trading Company Ltd., which provides water and environmental treatment equipment. The company’s growth was stagnant over the past 2 years and its debt burden increased. But the company has found a way out by restructuring itself and cooperating with foreign partners. Hua Phu Doan, Chairman of the company’s Board of Directors, says: “Our company has turned to new technology to produce better and cheaper products. We have also look for advanced technology and equipment suited to Vietnam’s conditions. The company has also established the relationships with foreign partners”.

Added value and competitiveness can only be realized when enterprises make an effort with state support to revise their management and policies. Le Ngoc Hung, a member of the Vietnam Enterprise Association, says:  “The State should resolutely implement its set targets, including restructuring state-owned enterprises, commercial banks and public investments. These targets have been set, but little progress has been made”.

In a report submitted to the National Assembly, the government pledged to continue its flexible financial and monetary policies and tax support to restore production and improve business competitiveness towards sustainable development.