HCM City proposes seven key solutions to develop knowledge-based economy

Nguyen Thanh Phong, a member of the Party Central Committee, deputy secretary of the Municipal Party Committee, and chairman of Ho Chi Minh City People's Committee, made the statement when analysing the issue of a knowledge-based economy in the southern metropolis. Phong’s views on future development were outlined in a report presented at a working session on January 27 in Hanoi within the framework of the ongoing 13th National Party Congress.

The push to achieve a knowledge-based economy has become a general development trend for the global economy and has therefore been chosen by several countries as a development strategy moving forward.

Drawing on lessons of experience from the successful practices implemented in a number of countries throughout the region and around the world, Ho Chi Minh City has always identified the importance of developing a knowledge-based economy as it fits in with its development orientation and strategy.

Most notably, the southern metropolis has effectively exploited the advantages of being a unique city with a large economic, cultural, education, training, science, and technology centre, all of which can be used to grow a local knowledge-based economy. The advantages the southern city has include being home to a large contingent of intellectuals, smart cities, high-tech parks, creative start-up centres, major technology corporations, research and development centres, and information technology infrastructure on a 5G network platform, Phong said.

The southern city has proposed seven key solutions aimed at developing the knowledge-based economy, with a specific focus on reforming mechanisms and policies, thereby creating a new legal framework which is suitable for the development of the knowledge economy.

Furthermore, it can be viewed as essential to strongly develop a source of high-quality labour whilst improving local citizen’s knowledge and training new skills.  This is alongside concentrating on investment in education development and reform whilst applying knowledge into current practices. Along with this, negotiation, co-operation, and transfer of advanced training schemes of countries in the region and around the world should be further enhanced.

Moreover, strong investment should be put into developing information technology infrastructure and digital transformation, especially following the complicated developments caused by the novel coronavirus (COVID-19) pandemic. It is therefore both an opportunity and challenge for the country to develop a digital economy in the near future.

It will also be necessary to promulgate mechanisms and policies in an effort to perfect the startup ecosystem, while also encouraging enterprises to invest in science, technology, and innovation. This can be done alongside promoting the leading and management role of the State for the purpose of leading the national economy towards deeper international integration.

Amid the trend of increasing globalisation and Industry 4.0, it remains certain that economic growth based on natural resources and cheap labour will pave the way for economic growth based on the implementation of high-technology and added value, the municipal leader said. Indeed, in order to continue boosting the nation’s role and position in the international arena, the development of a knowledge-based economy represents an inevitable trend.