They have argued Hanoi needs to lighten, not tighten, its hold if Vietnam is to avoid a deeper and more protracted economic crisis than the one battering the rest of the region. Asked whether Hanoi should shift away from its policy of protecting domestic industry to encourage competition, the prime minister said Vietnam wasn't yet in a position to do so. He also suggested the government shouldn't focus too much on exports. Instead, he said, Vietnam should look to the domestic economy to spur growth. Still, Hanoi may be able to stave off pressures to accelerate reform for some time.
Private estimates are substantially lower.
Nothing short of fundamental economic changes will stop Vietnam's slide, economists say. Vietnam's leaders are living in a fool's paradise if they think they are going to be isolated.