Renew and create new drivers of growth.

Global trade is facing unpredictable policy uncertainties. In its recently published “Global Trade Outlook and Statistics” report, the World Trade Organization (WTO) warned that serious risks, including the imposition of retaliatory tariffs and a wider spread of policy uncertainty, could lead to a further 1.5% decline in global merchandise trade, particularly harming less developed and export-oriented countries.

Difficulties on many fronts.

In this context, in Vietnam, Mr. Hoang Quang Phong, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI), stated that the business activities of enterprises are also being adversely affected by geopolitical conflicts and disruptions to supply chains and input materials. A nationwide survey by VCCI showed that only 32% of businesses indicated they would expand production and business in the next two years.

However, Vietnam remains committed to its GDP growth target of 8% or higher by 2025, laying the foundation for continuous double-digit growth in the following years; striving to become a modern industrialized and upper-middle-income country by 2030; and a high-income developed country by 2045. Therefore, according to experts, this is a crucial time to promote reforms and unlock resources to maintain high and sustainable economic growth.

Institutional reform, performance improvement.

The Vice President of VCCI emphasized that reforming economic institutions, improving the business environment, and promoting and supporting businesses will be key "keywords." This will increase the ability of businesses to absorb capital, develop and enhance the competitiveness of Vietnamese businesses, especially the private sector, enabling them to gradually master core technologies and integrate into global value chains. These are also important requirements for the coming period.

Sharing this view, Dr. Vu Thanh Tu Anh from Fulbright University Vietnam argues that in a rapidly changing global environment, achieving high growth requires a "non-traditional" mindset. This means placing the private sector in its rightful position as the most important driving force for economic growth. This is precisely what we are doing.

Along with that, increased labor productivity is crucial, with science and technology, especially the application of artificial intelligence (AI), being a key factor; forming an innovative economy. This is a crucial issue for achieving high growth.

Amidst the difficulties, Mr. Phung Xuan Minh, Chairman of the Board of Directors of Saigon Ratings, assessed that this is also an opportunity for Vietnam to implement a new economic development strategy towards restructuring the economy; restructuring import and export activities, avoiding dependence on a single main market.

Vietnam needs to rapidly shift from exporting cheap goods to an export model based on added value and enhancing the intrinsic value of products, in order to effectively cope with fluctuations in international trade policies both in the short and long term.

Furthermore, we need to be more proactive and implement feasible solutions to maximize our comparative advantages over many other countries, given that we currently have 17 Free Trade Agreements signed with over 60 countries worldwide. This is key to implementing a strategy of diversifying export and import markets, increasing competitiveness, and attracting FDI in the coming period.

To ensure stable and sustainable long-term economic development, in addition to renewing traditional growth drivers such as investment, consumption, and exports, Mr. Minh believes that Vietnam needs to continue creating new growth drivers and building a solid foundation for development in economic institutions, business environment, transportation infrastructure, human resources, digital economic infrastructure, science, technology, innovation, digital transformation, green economy, and circular economy. Among these, digital transformation plays a particularly important role.

Emphasizing the role of institutions, Dr. Dang Duc Anh, Deputy Director of the Institute for Policy and Strategy Research, argued that it is necessary to amend legal documents affecting growth, both on the supply and demand sides; truly removing difficulties for businesses and the private sector. Next, it is crucial to promote digital transformation and data connectivity to create a mechanism for fostering development. Simultaneously, thorough decentralization and delegation of power are essential, creating conditions for localities to make decisions and take action.

Source: https://thoibaonganhang.vn/lam-moi-tao-lap-nhung-dong-luc-tang-truong-163186.html