“In order to achieve the expected goals and development aspirations of the country over the next decade, the process of economic restructuring and renewing the growth model in the 2021-2025 period needs to be accelerated and truly break through,” Mr. Hoang Quang Phong, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI), told a forum entitled “Restructuring the economy for the 2021-2025 period: Problems faced by businesses” held by VCCI on December 14.

He also pointed out that, in the context of the pandemic, there have been new trends emerging in investment, trade, and digital transformation, as well as rapid changes in business models and production and consumption methods.

This represents both an opportunity and a challenge in restructuring Vietnam’s economy. Businesses therefore need to pay greater attention to economic restructuring and put themselves in an active role. Due to the unstable business environment and especially the instability brought about by the global pandemic, businesses must adapt and make appropriate adjustments.

The process of restructuring Vietnam’s economy in the 2016-2020 period posted positive results, such as promoting the development of the domestic private sector, attracting growing levels of FDI, continuing to develop markets, improving the business environment, and bolstering investor confidence.

However, such efforts also showed certain some limitations in the period, such as a slow growth model and low workplace productivity growth.

The restructuring of industry has also not been clear or sustainable. The processing and manufacturing sector is still mainly operating at the lower end of the value chain, with high material imports and dependence upon the foreign economic sector.