Vietnam steps up bank, state enterprise reforms in economic roadmap

HANOI (REUTERS) - Vietnam has approved a broad plan to boost its economy to 2020, focusing on restructuring public investment, banks and state-owned enterprises while controlling inflation and maintaining growth.

The Southeast Asian nation's economic growth fell to a 13-year low of 5.03 per cent last year as reduced consumer demand piled up inventory at many firms, forcing many into bankruptcy, further adding to banks' bad debt problems.

The master plan aims for a prudent monetary policy to tame inflation while ensuring "reasonable growth", Prime Minister Nguyen Tan Dung said in a 29-page directive signed on Feb 19. The plan takes effect immediately.

Vietnam will conduct tight fiscal policy, promote exports and tightly control imports while boosting domestic production of consumer goods, the directive said.