Participation Bank Infrastructure Investment in Asia (AIIB) initiated by China with Vietnam can bring many opportunities and risks, according to an expert opinion in the country.
Opinion on the economic Pham Chi Lan Sale made in an interview with BBC 1/7 days.
Earlier, Vietnam signed the charter operations of AIIB at a ceremony held in Beijing on 29/6, with great presence representatives from 57 countries.
Seven countries are Denmark, Kuwait, Malaysia, the Philippines, the Netherlands, South Africa and Thailand, has refused to sign with a reason that is supported in the country.
These countries say is likely signed later this year.
BBC: First of all, how you assess the advantages and risks that Vietnam has been participating AIIB?
Economist Pham Chi Lan: I think that participating banks can AIIB Vietnam can help borrowers to meet infrastructure needs.
Vietnam has great need of infrastructure to connect with economies in ASEAN. ASEAN also needs to connect with the major economies such as India, China.
But the important thing is that when the loan, the conditions how and who will control lending, as well as contractors.
For years the project projects using loans of China is forced to use Chinese contractors, recently extended, of poor quality, to raise more capital than the estimates, as losses in many aspects.
One example is Project elevated railways of Hanoi.
The day before he was Minister Dinh La Thang said no replacement contractors even if they do get very bad, violates many rules on workplace safety, cause risk to pedestrians, make people lose confidence in the project.
The reason is because of Chinese loans should be forced to use their contractor, even though the contractor had no experience, no quality, no responsibility.
How much risk ro Vietnam which head out towards him.
When I borrow from AIIB only hope that it is because there is an international bank, with many countries involved, it will help to monitor the loan funded projects better, not as a bilateral project between Vietnam and China.
BBC: The financial institutions like the World Bank or the International Monetary Fund to lend or hand out aid to other economies, it is always accompanied by the Events sweeping reforms. China is to always insist they will not interfere in the internal affairs of the party support funds. Do you think this is the way that China wants to reduce the influence of other financial institutions or not?
Economist Pham Chi Lan: I think China also wants to increase the influence in that way.
But me, personally, that the loan that accompanying reforms is also correct it. Vietnam needs to learn lessons from the Greek to see reform are essential for myself, not for creditors.
In Vietnam has also long raised concerns about public debt. State Government also said public investment reform is most needed reform, but not done.
The integration time as World Trade Organization Agreement on Trade or trans-Pacific arrived, Vietnam stood before reform pressure, but that pressure is needed to improve the efficiency of the economy and international standards such as transparency, accountability, public investment projects with society.
I do not think participating banks initiated by China will alleviate the need for reform in Vietnam Pham Chi Lan Nam.Kinh home health
should not be pressure from lenders is bad. If you yourself need real reform, it will promote the reform momentum in the country.
Vietnam needs to learn lessons from the Greek to know that is not always the easy loans, not enclosed the conditions of reform, which is also good. These loans will later become the people's debt burden, the country must pay.
BBC: If no conditions attached to the banking reforms initiated by China will obviously be facing many risks for dress. According to her they rely on what basis to accept this risk?
Economist Pham Chi Lan: China has huge resources financially to be able to lend. They also force redundant construction, manufacturing as well as supplies and want to make room for investment.
Even if there is a risk for them, can also be offset by interest that Chinese companies earn when participating part of the project.
A number of bilateral donors are often calculated in a way that other countries want to borrow to finance their consumption of goods and jobs for their company.
BBC: According to the data processing Vietnam imported AIIB have caused receding out the cooperative activities with the IMF or the World Bank not?
Economist Pham Chi Lan: I believe that Vietnam continues to stick with the IMF, World Bank or Bank Asian Development Bank, as the organization has helped Vietnam in many ways a long time, through ODA or programs market-oriented reforms.
Vietnam has not yet been reformed according his wishes, and Vietnam Main aware that, not under pressure from the World Bank or IMF. Many times in the country, we have to be the voice of these organizations are not strong enough for Vietnam to reform.
I do not believe that participation will alleviate AIIB desired reform in Vietnam, as well as require reform-oriented reform in Vietnam, they were too well then.
Not a leader in Vietnam dare reject the need for reform of Vietnam. All the leaders of the Party, National Assembly and the government are talking to reform and the resolution of the Communist Party of Vietnam admits to reform.
The strategy covers 10 years from 2011 to 2020 three reform strategy, which topped the institutional reforms. Economic restructuring also requires public investment reform, reform of the state sector and the banking sector. This is the reform that the government has established and is leading.
I do not think the bank engaged by the China initiative will alleviate the need for reform in Vietnam.
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