Traditional growth drivers tend to be less effective

New requirements for growth

The report was announced at the National Scientific Conference on Vietnam's Economic Assessment in 2024 and Growth Prospects in 2025, organized by the National Economics University in collaboration with the Central Policy and Strategy Committee and the National Assembly's Economic and Financial Committee.

The workshop was held to clarify the international context and the world 's impacts on Vietnam's economy in 2024; assess Vietnam's economic developments in 2024 through the main sectors of the economy (real economic sector, foreign affairs sector, monetary and financial sector, budgetary and financial sector); achievements and limitations, and assess the causes of the limitations.

At the same time, the workshop also analyzed opportunities and challenges in 2025; Vietnam's economic prospects in 2025; proposed policy recommendations in economic management in 2025 as well as proposed economic institutional reforms in the new context.

Accordingly, in the context of Vietnam setting a high growth target in the coming period to become a high-income country by 2045, economic institutional reform is a key task to maintain growth momentum and create new growth momentum.

Promoting economic institutional reform is an urgent task in the context of new growth. Photo: QL

Regarding Vietnam's economic prospects, according to the report, traditional growth drivers are showing a tendency to reduce marginal efficiency, the operation of the private enterprise sector is still facing many difficulties, and new growth drivers have not really had a strong impact. The macro-financial environment still has many potential risks.

The new context for Vietnam's growth requires maintaining high growth rates while stabilizing the macroeconomy. At the same time, it is necessary to expand the capital market while ensuring monetary security as well as expanding investment opportunities for private sector enterprises. The State needs to support domestic enterprises to improve their competitiveness in a fair manner through improving innovation capacity.

With the theme "Promoting economic institutional reform in the new context", the report argues that it is necessary to establish clear policy requirements for economic legal documents as well as set clear indicators in examining and appraising draft documents.

Quickly issue legal documents to recognize and protect digital assets, assets created by artificial intelligence, and digitized physical assets.

Review the number of conditional business lines in the Investment Law and related specialized laws, eliminate unclear and non-specific business conditions. At the same time, review to adjust and eliminate legal regulations that unreasonably restrict or exceed the necessary level for business activities.

Overcoming “hesitation” in economic law

Commenting on the report, Prof. Dr. Pham Hong Chuong, director of the National Economics University, said that it is necessary to fully assess the impacts of both the world and domestic economies to create a favorable growth environment for the Vietnamese economy not only in 2025 but also in the coming years.

Emphasizing that promoting economic institutional reform is contributing to untying the "knots" of "knots", this expert said that building a suitable economic and political institutional system is extremely important.

“An inclusive institutional system is an important foundation for a full market economy and helps encourage the participation of the vast majority of people in economic activities ,” said Mr. Chuong.

Meanwhile, Professor To Trung Thanh, National Economics University, commented that the biggest limitation of Vietnam's current economic law is the hesitation between respecting market principles and maintaining administrative management measures. " This leads to unnecessary barriers, reducing the flexibility of the economy ," Mr. Thanh acknowledged.

Regarding creating conditions for private sector enterprises to contribute better to the economy, Mr. Thanh proposed that the State should shift its mindset from doing things for them to supporting them, while strengthening the enforcement capacity of relevant agencies. Create a truly transparent and equal business environment.

Sharing this view, Prof. Dr. Ngo Thang Loi, National Economics University, said that the private sector – comprising more than 900,000 enterprises and 5.2 million business households – is facing many barriers. Although contributing more than 43% of GDP and employing 85% of the workforce, this sector has not yet been established as a central pillar of the growth strategy.

In particular, according to Mr. Loi, new business models – such as fintech, e-commerce, and innovative startups – still do not have a clear legal framework for development. “Small and medium-sized enterprises are wearing institutional clothes that are too tight, and cannot grow and break through in such an environment, ” the expert commented.

After nearly 40 years of renovation, Vietnam has achieved great achievements in economic development, with GDP size among the 30 largest economies in the world. The economic institutional system has been gradually improved, creating a more favorable legal environment for the market and international integration.

Quang Loc

Source: https://congthuong.vn/dong-luc-tang-truong-truyen-thong-co-xu-huong-giam-hieu-qua-382340.html