Vietnam's state budget revenues and total social investment as a proportion of GDP are among some of the world's highest. However, these resources have not been used effectively..
Reports at the event showed that Vietnam's social investment accounted for 35% of GDP, budget collection reached 22% of GDP, while foreign investment was equivalent to 26% of GDP.
However, these resources have not been optimized as some state-funded projects are of low quality, high cost and continuously suffer losses. Experts agreed that restructuring the public sector is at the root of the problem.
Public investment makes up a large proportion of total social investment. The allocation of public investment should also be reviewed, as many projects seem ineffective and don't generate value.
As of 2015, 843 state-funded enterprises were valued at 148 billion USD in terms of assets. Therefore state capital divestment should be accelerated to focus funding on other, more effective projects.
Despite enormous potential, complicated administrative mechanisms have hindered the budget reallocation process.
Economists say bad debts should be tackled quickly so that the national credit system can operate normally and fulfil its function.
