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PM: Vietnam must continue to pursue new growth model

Released at: 09:31, 12/01/2018

PM: Vietnam must continue to pursue new growth model

PM Nguyen Xuan Phuc (c) at the Forum (Photo from VGP )

Productivity and innovation key, PM tells 2nd Vietnam Economic Forum in Hanoi on January 11.

by Nghi Do

Vietnam should continue to pursue a new growth model based on productivity and innovation in the time to come, Prime Minister Nguyen Xuan Phuc told a policy dialogue session held within the framework of the 2nd Vietnam Economic Forum in Hanoi.

With the theme “Fast and Sustainable Economic Growth: Challenges and New Motivation”, the Forum was organized by the Central Economic Commission on January 11 and attended by nearly 1,500 leading Vietnamese and international economic scholars.

The Prime Minister said the Forum is important for policy makers, central and local government agencies, enterprises, experts from universities, research institutes, and organizations to exchange views on macroeconomic development and Vietnam’s economic situation as well as propose measures to help the government tackle bottlenecks and accelerate growth drivers in order to achieve goals set.

He asked the Central Economic Commission to report on all opinions from delegates to the Politburo, the Secretariat, and the government, and send them to functional agencies for study and practice. The government needs specific proposals to bring into life.

Vietnam’s GDP grew 6.81 per cent last year; among the highest in Asia and the world. At the same time, economic reform was accelerated, transparency was enhanced, and anti-corruption was promoted. The business environment improved significantly, with healthy competition, equality, and equity. These matters strengthened the confidence of investors and the business community, breathing new life into the economy.

However, it should be acknowledged that the economy still faces a range of challenges in the medium and long terms. One of the key challenges is how to develop rapidly and sustainably, thereby fleeing the middle-income trap, according to the Prime Minster, who recalled the requirements in 2018 made at a recent national meeting between the government and localities.

Of which, growth must be close to the level approved by the National Assembly, of 6.7 per cent. The quality of growth must be improved, workplace productivity must be higher, and environmental indicators must be improved. Society is to be peaceful and secure. Every citizen, especially the poor and disadvantaged, must have a better material life and spiritual life. The economy must be more resistant to major fluctuations.

After more than 30 years of reform, since 1986, Vietnam has recorded major achievements in socioeconomic development, Prime Minister Phuc emphasized. “We are not subjective and satisfied with the results achieved,” he said. “In the time to come, Vietnam should persist in pursuing a new growth model based on productivity and innovation.” It is necessary to quickly ease any dependence on old competitive advantages such as natural resources and cheap labor, especially in the context of the country’s golden demographic structure, which will only last about two decades, and tougher international pressure.

PM Nguyen Xuan Phuc speaking at the policy dialogue session

The great and important question is how to make Vietnam’s economic growth both rapid and sustainable, the Prime Minister told the gathering. These are two goals that can be contradictory, but some countries have been successful at their attempt, such as Japan and South Korea. “So, what to do to achieve both goals? In Vietnam, the two objectives need to be met,” he said.

“I’ve read the forum’s documentation, which specifically pointed to three levers for Vietnam to achieve these two important goals,” he went on. “I have learned that experts, scientists, and delegates have engaged in frank discussions, sharing insights on lessons, new growth models, and economic growth drivers. This will help the Party and the government identify initiatives and policies to promote rapid and sustainable development.”

“Growth and development is a marathon, not a sprint. Rejoice over the results in 2017, but consider these achievements as the basis of our confidence in efforts to restructure the economy and transform the growth model. This creates a stronger foundation for the economy to grow higher in the long run.”

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