The 14th National Congress of the Party: A milestone in establishing a new growth model.

Establishing a new growth model

The 14th National Congress of the Party marked a major shift in thinking about national development, including the renewal and establishment of a new national development model and a new growth model. What should Vietnam do to promote continuous high economic growth that will last for decades?

During the period 2021-2025, despite more difficulties and challenges than advantages, the Vietnamese economy will maintain macroeconomic stability, control inflation, ensure the overall balance of the economy, and sustain growth among the highest in the region. In 2025, GDP growth is projected to reach 8.02% (compared to 7.09% in 2024), and the total value of goods exports and imports will reach US$930.05 billion, an 18.2% increase compared to 2024 – setting an all-time record. Foreign direct investment (FDI) for the whole year of 2025 is expected to reach US$27.62 billion, a 9% increase compared to the same period, setting the highest level for the 2021-2025 period.

In particular, science and technology , innovation, and digital transformation have been implemented vigorously, gradually becoming new pillars of the country's development model; the rate of businesses applying digital technology has increased rapidly; and renewable energy has developed strongly. The economic structure has shifted from extensive to intensive, focusing on productivity, science and technology, and innovation. Institutional reforms have been accelerated, and many laws impacting the economy and society have been amended. These achievements are not just impressive growth figures, but represent a qualitative and quantitative shift – a crucial prerequisite, opening a major door for the economy to establish a new development model: self-reliance, self-strength, linked to deep international integration and sustainable development.

Science and technology; innovation; digital economy, green economy, and circular economy are the driving forces of the new growth model.

According to Ms. Nguyen Thi Viet Nga, a National Assembly representative from Hai Phong City, establishing a new growth model requires the synchronized exploitation and connection of traditional drivers—investment, exports, and consumption—with three new drivers: science and technology; innovation; and the digital, green, and circular economies—considering this a strategic task. To achieve this, it is necessary to transform tasks into specific mechanisms, resources, and responsibilities.

“First and foremost, science, technology, and innovation must become the ‘heart’ of every development strategy. Businesses need to be encouraged to invest in R&D (Research and Development) through tax incentives, innovation funds, state-ordered research, and the development of a creative startup ecosystem. For the digital economy, data must be considered a strategic resource; digital infrastructure, cybersecurity, and digital transformation in businesses and government need to be implemented synchronously, reducing transaction costs and improving governance efficiency. With a green, circular, and low-emission economy, this is not only a trend but also a vital requirement for Vietnam to participate deeply in the global value chain. The development of renewable energy, green transportation, carbon credits, green cities, etc., needs to be linked to a genuine market and stable, long-term policies. These three driving forces will only be effective if they are based on a modern institutional framework, high-quality human resources, and a synchronized infrastructure system. Therefore, breakthroughs are needed simultaneously, "This ensures both sustainability and consistency in implementation," Ms. Nga stated.

Economic institutions must play a decisive role.

According to Mr. Nguyen Bich Lam, former Director General of the General Statistics Office, now the Statistics Department (Ministry of Finance), for the new growth model to truly become a driving force for long-term economic growth, economic institutions must play a decisive role. However, first and foremost, it is necessary to remove and eliminate all institutional bottlenecks that are hindering growth.

“The competent authorities need to urgently address institutional shortcomings, grasp new issues, build inclusive, open, and transparent institutions, create high social consensus, and put businesses and people at the center. In particular, private enterprises should be the main and most important driving force for development, creating an equal business environment for all types of businesses,” Mr. Lam said.

Mr. Lam also added: “The Party and the State need to urgently build and implement a National Strategy for the Development of Ethnic Minority Enterprises with breakthroughs and flexibility in institutions, policies, and capital sources to create, nurture, and develop ethnic minority enterprises, aiming to build an economy that harmoniously combines internal strength, self-reliance, and self-improvement with external strength. Policies should be in place to create incentives and conditions for the private sector to access, apply, and innovate technology, and enhance its innovation capacity.”

For the new growth model to truly become a driving force and propel long-term economic growth, economic institutions must play a decisive role.

Recently, at a working session with the Central Committee's Policy and Strategy Board on the orientation for drafting resolutions on reforming the national development model based on science, technology, innovation, and digital transformation; and resolutions on strategic solutions to promote double-digit growth associated with establishing a new growth model, General Secretary To Lam emphasized that the drafting of these two resolutions must meet five requirements: Adherence to and full institutionalization of the viewpoints and objectives outlined in the draft documents of the 14th Party Congress; a long-term, comprehensive, and in-depth vision, not constrained by short-term interests or term-based thinking; a foundation based on Vietnam's reality, not a mechanical imitation of foreign models; and high feasibility and actionability, linked to the implementation roadmap and resources. It must be inspiring and motivating, creating high unity throughout the Party and the political system, gaining social consensus, and arousing the nation's desire to contribute and strive for progress through knowledge and creativity.

Transforming the growth model to be based on science, technology, and innovation is a necessary path to realize the country's two centenary goals – by 2030, the 100th anniversary of the Party's founding, Vietnam will become a developing country with modern industry and a high-middle income; and by 2045, the 100th anniversary of the nation's founding, it will become a developed country with a high income.

To transform the development model and establish a new growth model, we must first drastically shift our thinking, from extensive to intensive development; from relying solely on resources and cheap labor to relying on knowledge, technology, and productivity; from management to development creation; from the state "doing the work" to "creating conditions for society and businesses to innovate," along with fully leveraging the roles of all economic sectors: the state-owned economy playing a leading, creative, and pioneering role; and the private economy being the most important driving force of the national economy...

Source: https://baohungyen.vn/dai-hoi-xiv-cua-dang-dau-moc-xac-lap-mo-hinh-tang-truong-moi-3190337.html