The country's internal strengths will be the key to its success, he said. Mr Khai cited the cheap labour force, huge land mass with bountiful natural resources, idle capital held by the population and the people's native wit and creativity. The background to his stirring words, however, is a gloomy picture of plunging foreign investment and a regional economic crisis that has seriously affected the country's economy. The slump has occurred in all sectors, from agriculture and industry to services. Exports have slumped to zero growth for the first time in ten years.
Observers grumble that the government has failed to offer viable solutions to the economic downturn.
Other measures include cuts in government expenditure and laying off state employees. Mr. Khai stressed the need to develop the domestic market in order to reduce industry stockpiles. As the government turns inward, some Western critics say it should take more drastic measures to proceed with the sweeping changes demanded by multinational organisations and aid donors, including selling inefficient state-owned enterprises, reforming the finance system, cleaning up the banking sector and liberalising trade. Mr Khai again stressed the importance of state-owned enterprises, and promised to curb imports to improve the trade deficit. He offered little for the finance and banking sector apart from promises to cut expenses and reduce political meddling in commercial bank lending.