Double-digit growth target: Economic model must be reformed.

Mobilize all forces to engage in economic activities.

Dr. Le Dang Doanh, former Director of the Central Institute for Economic Management Research, stated that the reform of the economic management model should aim to enable businesses, entrepreneurs, scientists , experts, and even households to participate in economic activities, thereby enabling them to contribute to large-scale national projects. " Only then can we maximize the utilization and development of resources and foundations to achieve the set goals ," Dr. Doanh said.

According to Mr. Doanh, it is also necessary to increase the proportion of domestic industrial and service enterprises. Currently, Vietnam relies too heavily on foreign investment. It is time to build a team of national enterprises, elevating household businesses into enterprises. Because only when they become enterprises can households take advantage of the benefits from the signed free trade agreements.

" Households do not have legal status, while connecting with foreign countries requires many clear conditions such as address, legal entity...in order to conduct transactions ," Mr. Doanh explained.

According to experts, reforming the economic management model will help the system develop smoothly and could improve GDP growth by 1-2%. (Illustrative image)

Mr. Doanh further analyzed: Currently, Vietnam has 101 million people, but only about 800,000 businesses are operating, a very low number of businesses per capita. Meanwhile, in Hong Kong (China), on average, each person over 18 years old participates in 3-4 businesses.

" A university lecturer friend of mine shared that he invested in a company, helped it legally, then invested in another company, and also invested in real estate. He works 12-14 hours a day. Thus, as a university lecturer, he has also contributed to and created value for the economy, " Mr. Doanh cited as an example.

Experts emphasize that GDP is generated solely by agriculture , industry, and labor. Therefore, the workforce and its participation in production and economic activities need to be prioritized for development during the economic model reform process.

We must increase the proportion of domestic enterprises in industry and services. Currently, Vietnam relies too heavily on foreign investment. It's time to build a team of national enterprises, elevating household businesses into enterprises.

Dr. Le Dang Doanh

However, Mr. Doanh also advised that businesses must cooperate with each other to grow. “ The economic management model needs to promote national businesses to create Vietnamese brands, thereby generating significant value. We must avoid hasty changes in the short term to rely on foreign businesses. This might be acceptable for a certain period, but now, when we want stable growth of 8-10%, we cannot do that, ” he cautioned.

Meanwhile, Dr. Le Duy Binh, Director of Economica Vietnam, argues that Vietnam is transitioning from a capital- and labor-based growth model to one based on science, technology, and innovation. However, the actual effectiveness is not yet high. The economy still relies heavily on labor, and technological capabilities are very limited. The added value of the domestic economy and key sectors remains low.

Therefore, according to Mr. Binh, it is necessary to decisively focus on technology and innovation. “ This is a long-term and inevitable goal, an opportunity and a path for Vietnam to escape the middle-income trap and become a developed, high-income country. The transformation of the economic model requires further investment, adoption, and development of technology, gradually leading to innovation and the creation of new technologies, products, services, and business models. We need to upgrade infrastructure and train human resources to best support this transition to a new economic model ,” he said.

Businesses need a one-stop shop mechanism.

Economic experts also believe that the biggest goal of the economic management model reform process must be to create a transparent investment environment to attract resources most effectively. Speaking at the 17th Vietnam Economic Scenario Forum - VESF 2025, former Deputy Minister of Planning and Investment Dang Huy Dong analyzed: Vietnam's current economic development management system stems from a centralized economic management model. Over the past few decades, Vietnam has adjusted regulations to suit the integration process, contributing to significant economic achievements. However, maintaining the current management approach will make it difficult to achieve major goals.

For example, some projects take 5-7 years to get approved, which hinders the company's development efforts. Therefore, it is necessary to redesign the management system, optimize processes, and shorten project approval times.

Furthermore, it is necessary to change the management method towards a gradual shift from quantity to quality, using results as the goal to streamline procedures and focus on the final outcome. If management is based on final results, procedures will be much simpler and faster. In addition, results-based management also helps reduce administrative risks for civil servants.

Sharing the same view, expert Le Dang Doanh emphasized that reforming the economic management model must create a transparent mechanism, ideally a one-stop shop with a single decision-making level, to shorten the approval time for various procedures and licenses. This would help businesses save time, effort, costs, and missed opportunities.

In addition, a more open mechanism will make it easier for households and small businesses to participate in the overall development of the economy.

Establishing a streamlined management mechanism will help businesses save a significant amount of time and money, which can then be reinvested in economic development. (Illustrative image)

He observed that domestic businesses are currently facing many difficulties, as they have to deal with numerous "sub-licenses" to carry out a project or production activity. Therefore, he suggested reviewing the economic management model, and identifying and eliminating any steps that still cause difficulties for businesses if possible.

“ We need a streamlined economic management system. From businesses, there should be just one step to the regulatory agency with decision-making power. Only then will cumbersome procedures, harassment, and overlapping permits be eliminated. This will allow businesses to save time and money, which can then be reinvested, and the quality of their work will improve, ” the expert suggested.

Furthermore, the new economic management model must be open and transparent. This is a crucial issue, because only with openness and transparency can there be no corruption or waste, and money can be used for its intended purpose and effectively.

During a recent working meeting with the Prime Minister, representatives from the Housing and Urban Development Investment Corporation (HUD) highlighted the difficulties the corporation faces in the process of investing in and constructing social housing. They requested that the Government allow a shortening of the bidding process to reduce unnecessary procedures and time, which are costly for the enterprise.

The transformation of the economic model requires further investment, adoption, and development of technology, thereby gradually leading to innovation and the creation of new technologies, products, services, and business models.

Dr. Le Duy Binh

Economist Nguyen Bich Lam also commented that creating a smooth management mechanism would greatly benefit businesses. " Procedural bottlenecks will be removed, eliminating the difficulties businesses face from the outset, thereby helping businesses move faster, develop more sustainably, and contribute more to the country's economic growth goals ," Mr. Lam said.

Experts also suggested focusing on developing a digital government so that administrative procedures can be carried out as quickly and smoothly as possible. Accordingly, businesses only need to upload information to the management database, and the authorities will process and respond immediately on this system. Businesses can receive results immediately or within a certain time, without going through any intermediate steps.

New thinking cannot operate within the framework of old laws.

Economic experts also noted that another issue needing improvement when reforming the economic model is the legal framework – an indispensable foundation for businesses to operate legally and efficiently.

Currently, innovative thinking is incompatible with old regulations, especially in a context where many legal provisions only address temporary problems, creating certain obstacles in state management. Some regulations even fail to reflect reality, leading to impracticality and hindering socio-economic development.

Therefore, it is necessary to decisively eliminate many overlapping legal documents. At the same time, we must innovate the mindset of law enforcement, focusing on goals and results rather than being rigidly bound by procedures.

Dr. Nguyen Duc Kien, former head of the Prime Minister's Economic Advisory Group, analyzed: Currently, the State is making great efforts to reform and streamline the administrative apparatus for economic management. However, there are still many things that need to change in management thinking. Domestic businesses are mostly small and medium-sized enterprises. Therefore, with the current complex administrative procedures, many businesses cannot operate smoothly and develop as expected.

Therefore, drastic and effective reforms are needed, ensuring openness, transparency, and transparency in the law-making process.

Institutional reforms should focus on dismantling unreasonable regulations and business conditions that are incompatible with market mechanisms. Strong decentralization and delegation of power to local governments will create healthy competition among localities in attracting investment and promoting economic development. Furthermore, close coordination and supervision between the Government and all levels of management are necessary to accelerate the reform process.

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