In his presentation, Dr. Nguyen Dinh Cung, former director of the Central Institute for Economic Management, stated that institutions determine a nation’s success or failure. Since 2011, Vietnam’s economic growth has been hindered by institutional limitations. The 11th Party Congress in 2011 identified institutional reform as one of three strategic breakthroughs, yet after more than a decade, the expected progress has not materialized. Instead, institutions have become ‘the bottleneck of the bottleneck’.

He cited Party General Secretary To Lam, saying the core issue lies in a restrictive legislative mindset, where regulations are based on ‘allowing only what is understood’and banning what cannot be controlled. This approach has led to an overly complex legal system, excessive administrative procedures, and increased legal risks for businesses.

With competent authorities showing resolve to accelerate administrative reform as a key breakthrough, Dr. Cung emphasized that people are the decisive factor in institutional effectiveness. Restructuring the administrative system and eliminating geographical constraints will open new development spaces and enhance economic efficiency.

He described this approach as ‘the breakthrough of breakthroughs’, saying a well-structured administrative system will boost efficiency and drive strong institutional reforms, laying the foundation for sustained high growth of 8% in 2025, with double-digit growth in the coming years.

Meanwhile, Dr. Tran Du Lich, an economic expert, highlighted that achieving double-digit growth is not just a target but a national ambition, and failure to do so could mean missing Vietnam’s chance to become a developed nation.

To make this happen, he said, Vietnam needs a true institutional revolution. Current government restructuring efforts must be accompanied by at least a 30% reduction in administrative procedures, or more if necessary.

Reorganizing the administrative system may be challenging, but if done right, it will significantly enhance governance efficiency. A streamlined, digitalized government will be the key to Vietnam’s sustainable development, stressed Dr. Lich.

From a local perspective, Bui Minh Tri, vice chairman of the Binh Duong People’s Committee, shared that Binh Duong province is actively restructuring its administration to achieve 10-15% growth in 2025, despite the challenges of simultaneously managing economic development and administrative reform.

The idea of accelerating administrative reform to meet the high growth target also received positive support from the business community. Nguyen Ngoc Hoa, chairman of the Ho Chi Minh City Business Association (HUBA), stated that targeting over 8% growth is essential, as a growing economy creates opportunities for businesses.

One major concern for businesses is burdensome administrative procedures, he said, adding currently, resolving an issue requires approvals from multiple agencies, often exceeding 10 departments, with each step taking 10-15 days, causing excessive delays.

To address the issue, the HUBA representative proposed empowering lead agencies, setting clear time limits for decision-making, increasing accountability and improving the efficiency of local governments.

He advocated for a new governance approach, where the central government only regulates critical matters, while local governments have full authority over all else. However, he admitted, this requires rapid capacity building at the local level, to ensure officials have the skills and competence to handle increased autonomy.

A pivotal milestone in legislative reform and state apparatus streamlining

VOV.VN - After 6.5 days of serious, democratic, and highly responsible discussions, the 9th extraordinary session of the 15th National Assembly (NA) concluded on February 19, having fulfilled its planned agenda.