Competitive edge key to success

Competitive edge key to success (10-01-2009) The prime rate cap set by the State Bank of Viet Nam has discouraged many commercial banks from lending activities to secure their capital. Investors have suggested abandoning the cap as a measure to cope with the global economic crisis. — VNA/VNS Photo Viet Thanh HA NOI — Economists and investors agreed in Ha Noi yesterday that Viet Nam could not avoid the global economic crisis, but were confident the impact could be minimised if competitiveness was strengthened and domestic investment efficiently maximised. Sustained competitiveness was vital for Viet Nam to ensure it met its planned growth targets, international law firm Freshfields Bruckhaus Deringer senior lawyer Jerome Buzenet told the gathering hosted by the National Assembly’s Economic Committee. Dragon Capital Group Chief Executive Officer Dominic Scriven said the world-wide crisis had heavily reduced capital flow into Viet Nam. As an investment-dependent economy, Viet Nam should turn to its domestic financial sources in response, he said. Dragon Capital Group is a long-term investor in Viet Nam. Viet Capital&Securities joint-stock company (VCSC) research delivered at the seminar shows the global insolvency crisis has struck Viet Nam a full blow. The result will be a drastic fall in exports and investment capital while unemployment will increase. “There’s no doubt about this trend as consumption world-wide has plummeted markedly and most of Viet Nam’s trade partners are falling into recession,” warned VCSC general director To Hai. The VCSC research estimates that capital investment in the world’s emerging markets,…