The report, compiled by the Vietnam Centre for Economic Policy Research (VEPR), said the country's economic growth this year would go two ways. In the first scenario, economic growth would hit 5.04 percent if inflation was 4.95 percent and in the second, if inflation reached 6.64 percent, economic growth would reach 5.35 percent.
The document reflects concerns about the country's economic restructuring that has slowed down in comparison to two years ago. It also mentioned opportunities that Vietnam could miss if reforms were not taken.
It shows that Vietnam hasn't comprehensively capitalized on international integration.
After joining the World Trade Organization in 2007, the country's economy has reached an annual growth rate of only roughly 5.8 percent against the average rate of 7.8 percent in the previous six-year period.
Inflation from 2002-07 was also only 7.35 percent against 11.5 percent from 2008-13.
"Vietnam missed many opportunities to gain economic growth through restructuring the economy," the report wrote.
It also suggested that the country's economic model should be scrutinized to form a new model.
Vietnam will not progress on a smooth path if a new economic model and suitable supporting policies are not introduced, the report states.
Nguyen Duc Thanh, director cum chief economist of the VEPR, said that Vietnam's economy is like a ‘heavy carriage' on a bumpy road.
According to the report, Vietnam needs to deal with short-and medium-term issues including non-performing loans in the banking system, the frozen real estate market and difficulties facing enterprises.
The report also mentioned long-term measures to boost the economy, including improving the business environment and reviving investor and public confidence as well as reducing administrative measures and State intervention in economic execution.
Chairman of the National Financial Supervisory Committee Vu Viet Ngoan said that the report has reflected the real situation of the country's economy.
Ngoan said that he agreed with the recommendations made in the report that both short-and long-term measures should be combined.
Economist Le Dang Doanh suggested that the report should consider more carefully public debt in the European Union and the EU's measurers to deal with the crisis, explaining that those lessons could be applied in Vietnam.
This is the fifth year the VEPR has published the Vietnam Annual Economic Report.
VNS