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Vietnamese expert says Chinese economy has lots of room for growth

(Xinhua) Updated: 2016-03-09 10:17

HANOI - Chinese economy has lots of room for growth, such as massive domestic market, high foreign exchange reserves, and potentials in innovation, said a Vietnamese expert.

Tran Viet Thai, deputy director of the Institute for Foreign Policy and Strategic Studies under Vietnam's Ministry of Foreign Affairs' Diplomatic Academy, told Xinhua in a recent interview in capital Hanoi.

Thai believed that "high foreign exchange reserves, massive domestic market, potentials in innovation are among unexplored strengths and latent capacities of Chinese economy."

However, "China is under pressure of slowing economic growth," according to Thai.

While conceding "the trend of slowing economic growth is irreversible," the expert said "the trend is in the calculation of China's economy."

"Chinese economy is now facing difficulties in dealing with overcapacity, public debts, non-performing loans of the government and localities, stabilizing foreign exchange rates, and maintaining economic growth at appropriate level as well as carrying out drastic reforms," Thai pointed out.

The expert thought Chinese economy at present like a boat sailing in deep waters. Like the boat, in order to move on, it must defeat resistance of the water.

In order to gain the objective, China must implement flexible policies as well as drastic reform measures, Thai proposed.

"In return, the economy will be healthier with steadier structure. This lays foundation for stable development of Chinese economy in the future, especially in growth model transformation."

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