Government leader accentuates drastic reform for stronger growth

VOV.VN - Prime Minister Nguyen Xuan Phuc has laid stress on Vietnam’s breakthroughs in institutional reform, infrastructure and human resources development in its strategic development plan for 2021- 2030.

government leader accentuates drastic reform for stronger growth hinh 0
Prime Minister Nguyen Xuan Phuc chairs the plenary session themed “Action for a prosperous Vietnam at the forum.
Prime Minister Nguyen Xuan Phuc attended the Vietnam Reform and Development Forum (VRDF) 2019 under the theme “Vietnam: Aspiration for prosperity -Priorities and Actions” and chaired the plenary session themed “Action for a prosperous Vietnam,” in Hanoi on September 19.

Addressing the plenary session Phuc said, “First, peaceful environment with political stability will fuel rapid and sustainable development. Second, economic institutional reform should be implemented towards modern market economy for integration to serve people and businesses in digital economy and society. Third, internal potential should be unlocked to promote new technology and dynamic private sector focusing on corporate sector as an engine for growth. Fourth, independent and self-reliant economy with resilience and adaptation for the United Nations Sustainable Development Goals 2030 to ensure prosperity for all. Fifth, foreign relations expansion, active international integration and efficient implementation of signed FTAs to join global value chains.”

The Vietnamese government leader acknowledged foreign experts’ comments on limitations and possible risks, especially in adaptation capacity, digital economy access limitation and mid-income trap.

He said, “We have to promote our innovation and application of science and technology so that more businesses will join global value chains and benefit from technological transfer for higher position in the global value chain. This would help us improve our competitiveness and capacity for the whole economy and each product while gaining more confidence in rapid and sustainable development without falling in the mid-income trap.”

The outcomes of the forum will serve as input for the Government to design socio-economic development strategy for the next decade.

PM Phuc asked the Ministry of Planning and Investment and leaders of ministries, sectors and localities to fully grasp international experience and knowledge and experts' suggestions of foreign and Vietnamese experts in order to find suitable ways for Vietnam to finalize the draft socio-economic development strategy for 2021-2030, and the five-year orientations for socio-economic development for 2021-2025.

In his remarks, Minister of Planning and Investment Nguyen Chi Dung also called for greater efforts to renovate the mindset, work out economic development methods, and reform mechanisms and policies. Alongside the economic development trend of the global economy, Vietnam has renovated the economy and applied achievements of the Forth Industrial Revolution in a multitude of fields.

In 2019, the nation moved up three positions in the Global Innovation Index  (GII) from 2018 to rank 42 out of 129 countries, first among 26 countries with low middle income and third among ASEAN countries after Singapore and Malaysia,
During the 2011-2018 period, Vietnam recorded an annual average gross domestic product (GDP) growth rate of more than 6.2%. By the end of 2018, its GDP scale stood at over US$250 billion, with per capita GDP of US$2,600..

Meanwhile, World Bank Country Director in Vietnam Ousmane Dione said that escalating trade tensions and technological changes are affecting Vietnam, adding that the country’s economic model of the country is also facing domestic challenges, including the aging population degradation in natural resources, modest human resources and risk of reduced productivity.

He emphasized that breakthrough innovation is necessary for the country to grasp opportunities and mange risks in the future, adding that a well-designed socio-economic development strategy is also significant for Vietnam.

David Dollar, a senior expert from the US-based Brookings Institute, stated that the private sector of Vietnam has become backward due to weak access to credit and land. Vietnam should clarify areas for the State-owned sector and those for the private sector, thus creating a fair playground for the two sides, he added.

Participants at the event also underscored the need for Vietnam to further improve productivity, promote technology and artificial intelligence application, reform the economic structure and revamp the State system organization.