Economic restructuring for rapid and sustainable development

According to Dr. Nguyen Thi Huong, Director of the General Statistics Office ( Ministry of Finance ), in order for GDP to grow high and stable, it is necessary to promote economic restructuring.

Dr. Nguyen Thi Huong, Director of the General Statistics Office (Ministry of Finance). (Photo: Investment Newspaper)

Despite facing difficulties from outside, especially the US's reciprocal tax policy, production, business, export, investment activities... in the first 4 months of the year continued to improve, madam?

In the first 4 months of the year, the macro economy was basically stable; major balances were ensured; exchange rates were stable; the average consumer price index in the first 4 months of the year was at 3.2%, creating room for flexible and effective management of macro policies. State budget revenue reached 48% of the estimate and increased by 26.3% thanks to production and business activities in the last months of 2024 and early 2025 continuing to maintain growth momentum; the Government and the Ministry of Finance promptly issued and focused on implementing fiscal policies from the beginning of the year, reducing and extending taxes, fees, charges and land rents, contributing to supporting businesses and creating revenue for the state budget.

With the US reciprocal tax policy, import and export activities and foreign direct investment capital in the world have been disrupted as never before in recent decades, but in the first 4 months of the year, Vietnam still maintained its export momentum with a total turnover of over 140 billion USD, up 13% over the same period in 2024, with a trade surplus of 3.79 billion USD.

Foreign direct investment (FDI) realized in the first 4 months of the year reached over 6.7 billion USD, the highest in the first 4 months of the year since 2020. Many multinational corporations actively invested and put into operation large-scale factories, such as the Samsung Electronics expansion project, the LG Display & LG Innotek expansion project, the Intel expansion project, the LEGO Group project, the Amkor Technology expansion project... That shows that Vietnam continues to be an attractive destination for international investors.

All three economic sectors grew positively. Agricultural production maintained its growth momentum, the value of many agricultural export products increased significantly such as coffee, pepper, rubber, seafood, etc. The Industrial Production Index (IIP) for the first 4 months is estimated to increase by 8.4% (same period last year increased by 6.3%), in which the processing and manufacturing industry increased by more than 10% (same period last year increased by 6.5%). Total retail sales of goods and consumer service revenue increased by 9.9% and improved month by month. Tourism was a bright spot, attracting nearly 7.7 million international visitors, the highest in the first 4 months of the year in many years, up 23.8% over the same period last year.

Madam, with these positive results, the Government is determined to achieve the economic growth target of at least 8% this year and double digits in the following years?

At the opening session of the ninth session, reporting to the National Assembly, Prime Minister Pham Minh Chinh emphasized the need to focus on promoting growth with a target of 8% or more. To achieve this goal, since the beginning of the year, the Prime Minister has chaired many important conferences, including 9 conferences with businesses and business associations; promoted disbursement of public investment capital; promoted exports, and stimulated domestic consumption.

Economic growth of 8% is a very high and difficult target, but the Government and ministries and branches have carefully analyzed and closely assessed the implementation of the Socio-Economic Development Plan for 2025 and the 5-year period of 2021-2025, continuing to have breakthrough solutions to strive to complete the set goals, especially the growth target of 8% or more. However, to achieve sustainable growth, in addition to renewing traditional growth drivers (investment, consumption, export), exploiting new growth drivers, developing the private economy as the most important driving force of the national economy in the spirit of Resolution 68-NQ/TW on private economic development just issued by the Politburo on May 4, 2025, it is necessary to focus on shifting the economic structure towards industrialization and modernization. Because economic restructuring is the inevitable path to help the country quickly escape backwardness and underdevelopment and become a civilized, modern nation.

Can you explain more clearly why economic restructuring is the inevitable way to escape backwardness and underdevelopment?

In economics, economic restructuring is the movement and transformation of industries, activities, and economic types in accordance with the capacity and development level of the productive forces, corresponding to the socio-economic conditions in different stages. In the process of economic restructuring, the more developed industry groups have an increased proportion; conversely, the less developed industry groups have a decreased proportion.

Karl Marx's theory (1909) introduced the categories of economic and rational sectoral structure. According to Karl Marx, a rational economic sectoral structure is a structure capable of creating an expanded reproduction process. A rational economic sectoral structure must meet conditions such as being in accordance with objective laws, in accordance with regional and world economic and political trends; reflecting the ability to exploit and use domestic economic resources.

Thus, economic restructuring is a regular process and an important driving force to shape the development of each country.

What about reality, ma'am?

In high-income countries, the industrial and service sectors bring large revenues to the economy, highly skilled labor, and adequate and modern infrastructure. These are the countries leading the world's industrial revolutions and are gradually moving towards a knowledge-based economy.

According to the World Bank (WB), the group of high-income countries has a large economy and fairly stable growth; a modern economic structure, in which the service sector accounts for a very high proportion of GDP, often accounting for 65% or more; the industrial and construction sector accounts for 22-27%; the agricultural, forestry and fishery sector accounts for a very low proportion (1-2%).

Typical economic structures of high-income countries with service, industry and construction, agriculture, forestry and fishery sectors are as follows: The United States is 81.3%; 17.7% and 1%. Singapore is 72%; 22% and 0.6%. Japan is 71%; 27% and 1%. The European region is 66%; 22% and 2%.

In middle-income countries, by 2023, the proportion of the agriculture, forestry and fishery sector will account for about 8.8%; the industry and construction sector will account for 33.6%; and the service sector will account for 53.6%.

In low-income, underdeveloped countries, the economy depends heavily on agricultural production, which usually accounts for 24-34%; higher than the industrial and construction sector (21-30%). Meanwhile, the service sector accounts for 33-43% of the economic structure.

The above data shows that, in order to quickly bring the country out of backwardness and meet the requirements of international economic integration, it is necessary to focus on shifting the economic structure towards reducing the contribution of the agricultural, forestry and fishery sectors in GDP, increasing the proportion of the service sector, industry and construction sectors.

Shifting the economic structure towards industrialization and modernization is the inevitable way to escape backwardness. Madam, how is the process of shifting the economic structure in Vietnam?

After nearly 40 years of renovation, our country's economic structure has continuously shifted towards industrialization and modernization. If in 1986, the agriculture, forestry and fishery sector accounted for 36.76% of GDP, it now accounts for only 11.86%. Meanwhile, the industrial and construction sector has increased from 24.74% to 37.64%. Meanwhile, the service sector has increased from 29.18% to 42.36%.

Since 2011, the economic structure has shifted in a positive direction and is more suitable for the growth model gradually shifting to depth, based on the application of science - technology and innovation. However, compared with the economic structure criteria of the above income groups, Vietnam has just surpassed the low income level, not reaching the average income level, when the agricultural, forestry and fishery sector still contributes a lot (11.86%), the service sector contributes disproportionately (42.36%), while in middle-income countries, these rates are 8.8% and 53.6% respectively.

Compared to other countries in the region, if we consider the proportion of agriculture, forestry and fishery in GDP, Vietnam's economic structure is currently only equivalent to that of Thailand in 2011 (11.59%), Malaysia in 1996 (11.68%), China in 2005 (11.64%), South Korea in 1984 (11.87%)... Therefore, along with drastic and synchronous solutions, in order for GDP to grow by 8% or more this year and double digits in the following years, economic restructuring needs to be prioritized and focused on.

According to Investment Newspaper

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Source: https://thoidai.com.vn/chuyen-dich-co-cau-kinh-te-de-phat-trien-nhanh-va-ben-vung-213522.html