A new way of thinking is needed to establish a sustainable economic structure.

In reality, the economic restructuring efforts in recent years have not yielded significant results, and the outline of a new economic growth model remains unclear. Therefore, economic experts believe that a change in mindset is needed to find new energy for the economy.

The economic structure has not changed significantly.

Dr. Vu Thanh Tu Anh presented a paper at the Vietnam Economic Conference in 2024 and Prospects for 2025. Photo: TH

According to Dr. Vu Thanh Tu Anh, senior lecturer at the Fulbright School of Public Policy and Management, Fulbright University Vietnam, in Vietnam, when discussing economic structure, people often refer to structure by industry, sector, and labor force… However, a very important structure related to technology, added value, and productivity is not yet fully captured by the statistical system.

“Looking at Vietnam’s export basket 20 or 30 years ago, crude oil accounted for about 20%. Now, crude oil accounts for less than 2%. Twenty years ago, we didn’t export a single mobile phone, but now mobile phones account for 20% of total exports… Clearly, the structure of goods has changed, but the very important proportions we want – added value and productivity – have not changed,” Dr. Vu Thanh Tu Anh stated during a roundtable discussion at the National Scientific Conference: “Vietnam’s Economy in 2024 and Prospects for 2025: Promoting Economic Institutional Reforms in the New Era.”

During the discussion, Associate Professor Bui Tat Thang, former Director of the Institute for Development Strategy, argued that although the economic restructuring process has been underway for 15 years, the results have not met expectations. Overall growth has been relatively good, but it has not created a new development model or a new growth model.

"We have always linked the restructuring process to the formation of a new economic growth model, but fundamentally, after 15 years of strenuous restructuring efforts at all levels, in all sectors, and in all localities, we still haven't found any sign of a new growth model that is significantly different from the one before the restructuring," this expert frankly stated.

Agreeing with the perspective of Associate Professor Bui Tat Thang, Dr. Vu Thanh Tu Anh analyzed that, in general, the economy must go through a growth phase based on input factors, specifically related to allocating resources to investment and increasing the labor force.

Phase two begins to focus on productivity growth, where technology must be introduced, infrastructure must be modernized, institutions must be developed, and markets must be used as the primary mechanism for resource allocation…

In the third phase, the phase of innovation and technology transfer, there must be something unique to Vietnam and large corporations and enterprises.

"Now that Vietnam has passed the first stage and is in the second, it hasn't yet moved to the third stage. Failing to move to stages 2 and 3 will create a middle-income trap. Therefore, it will be impossible to increase the added value content of our products, including high-tech export products," stated Dr. Vu Thanh Tu Anh.

The private sector needs to be placed at the center of the economy.

Economists participated in a roundtable discussion at the conference.

Discussing efforts in restructuring the economy, Dr. Vu Thanh Tu Anh argued that it is necessary to redefine the sector that plays a pivotal and central role in development. This means returning the private sector to its crucial position. Achieving this will increase the added value content in Vietnam's export products and enable more efficient technology transfer and innovation.

Developing the private sector and considering it the most fundamental internal strength of the Vietnamese economy is one of the solutions to address the middle-income trap for Vietnam. Looking at the FDI and export sectors, while they provide Vietnam with many opportunities for prosperity, they are also sectors that will be immediately impacted and may quickly withdraw from Vietnam.

Experts suggest that the State should choose to support industries or businesses that have demonstrated, at least in their initial stages, competitiveness. The State's role is to provide support, giving businesses a stronger foundation and more energy through financial mechanisms, research and development fund mechanisms, and institutional support mechanisms.

At that time, businesses and industries began to break through to mature and lead the economy, instead of remaining stagnant or even gradually declining due to a lack of conditions.

With the perspective that the State plays a constructive role, society will be formed, Associate Professor Bui Tat Thang believes that this is the foundation for forming a new economic structure and a new growth model, in which relationships have a more rational proportion.

Currently, we shouldn't overemphasize restructuring the old model; instead, we need a new mindset, establishing a new economic structure model to achieve sustainable development. This includes the structure of industries, technology, and the spatial development of the entire economic system; the territorial space encompassing both mainland and islands, forests, plains, urban and rural areas.

"In short, a completely new way of thinking about the structure, the economic structure, and the supporting institutional structure is needed to hope for rapid and sustainable development for the country," Associate Professor Bui Tat Thang stated.

Source: https://hanoimoi.vn/can-tu-duy-moi-de-xac-lap-co-cau-kinh-te-phat-trien-ben-vung-698552.html