Difficulties facing Vietnam economy: PM

Difficulties facing Vietnam economy: PM

HANOI (Reuters): Vietnam's prime minister has warned that the
Communist country is facing growing economic problems, with
farmers suffering losses, industrial growth slowing and foreign
investment on the decline.

Phan Van Khai told a meeting of cabinet ministers earlier this
week that despite positive macroeconomic indications "severe
challenges" lay ahead, some of which were already beginning to
bite.

State-controlled press quoted him yesterday as saying that
despite a record rice harvest, many farmers had been unable to
sell their produce because of unfavorable price fluctuations.

At the same time, direct foreign investment is on the decline,
industrial production is stagnating and the state sector remains
inefficient and unreformed, he said.