Religious Bodies biggest challenges will be managing Vietnam s transformation into a more pluralistic society over the coming decade and be- yond. Indeed, the CPV s strict control of the media and political opinion is already cracking, with a growing number of internet bloggers becoming increasingly critical of government policy. ...A failure to contain inflation at a reasonable level and uphold the real value of the dong could undermine confidence in the regime. Divisions Within The Communist Party: High inflation and devaluation have opened schisms within the CPV leadership between proponents of continued economic reform and a more conservative wing which believes that a deceleration or even re- versal of reform policies would benefit macroeconomic stability. Ethnic And Regional Tensions: Vietnam is relatively ho- mogeneous, with ethnic Viet comprising almost -- of the population. ...While these factors may presage stability in the short term, the experience of other South East Asian nations shows that rising wealth and development later lead to calls for political liberalisation. -- Business Monitor International Ltd www political outlook public unrest a Major risk
...With regard to investment, foreigners will be allowed to own up to -- equity in publicly listed compa- nies, compared with the current limit of -- . ...The Ministry of Finance (MoF) also aims to restructure more than --- SOEs by ----, with officials unveiling plans to privatise -- SOEs, and divest or potentially liquidate another -- SOEs over the next two years. Although only -- companies were equitised in ---- (with nine companies missing their targeted dates), the rate of privatisation will likely pick up pace in ---- and ---- as -- company executives have pledged to complete the process over the next two years, or face salary cuts and/or even the loss of their jobs. While progress is being made with regard to the country s busi- ness environment, corruption remains a key challenge. ...education reform also High on the agenda Education reform will continue to be high on the government s agenda following the passing of a resolution in November ---- by top Vietnamese officials for an across-the-board overhaul of the sector. Indeed, not only are perceptions of corruption in the educational sector very high, but it is also a very rigid educational system, lacks vocational training and career guidance, has poor - Business Monitor International Ltd www political outlook policy continuity a strength
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