Many people argue that with the market mechanism in place we must follow the capitalist path. Khai, who was elected as premier last September apologised for not meeting with the press sooner, pleading a busy schedule prevented him from doing so. His meeting Tuesday is seen as part of a broad initiative to appear more open to foreigners in the face of flagging foreign investment, a problem he readily admitted to. To achieve this goal, he said the government plans to clean up the ailing state sector, merging some lossmaking companies and closing others altogether. Many people suggest we expedite privatization.
Many countries choose shock measures which end in social unrest.
While recognizing the need to prune state enterprises, which still account for more than 40 percent of industrial output, Khai cautioned against the dangers of creating too much unemployment. However his comments did not suggest that Vietnam was prepared to compromise in order to unblock hundreds of millions of dollars in IMF money under the Enhanced Structural Adjustment Facility loan which has been blocked since November. Khai steadfastly defended the monopoly role of the Communist Party and denied recent calls for political reform critics including former general Tran Do and mathematician Pham Dinh Dieu had led to any soul searching among top party brass.