Economic scale with orientation towards fast but sustainable growth

Photo caption — *Prime Minister Pham Minh Chinh, a National Assembly delegate from Can Tho City, spoke at the meeting. Photo: VNA*

Commenting on the draft document submitted to the 14th Party Congress on the afternoon of November 4, many National Assembly deputies expressed their agreement and high consensus with the structure, content and innovative spirit of the political report, which was carefully and scientifically prepared, reflecting the strategic vision and aspirations for the country's development by 2045.

Prime Minister Pham Minh Chinh said that growth must be associated with the scale of the economy , with the orientation of fast but sustainable growth, macroeconomic stability, inflation control, and ensuring major balances of the economy.

"We must ensure a deficit, because if revenue is not enough to cover expenditure, the economy will collapse immediately," the Prime Minister noted. With a growth target of over 8% this year and double-digit growth in the coming period, the Prime Minister commented that "high growth is very difficult, but there is room to do it."

This year, the average growth rate for the three quarters has reached 7.85%, but the Prime Minister is concerned about the growth rate in the last quarter of the year in the context of recent flooding in the North and the Central region also being submerged in heavy rain and floods.

'It is very difficult but we must put pressure to do it. The more pressure our people have, the more effort they make. In difficulties, innovations come up. Growth of over 8% is pressure but requires the whole system to make efforts, because if growth is achieved, labor productivity will increase, income will improve, and people's lives will be raised,' the Prime Minister emphasized. One of the important issues contributing to growth is strategic infrastructure.

The Prime Minister highlighted that in this term, investment for development increased by 55% compared to the previous term. Along with infrastructure development, the Prime Minister noted that ministries, branches and localities should be proactive in building institutions, because institutions are the driving force, the resource, and also the competitiveness of a country.

Regarding transport infrastructure, the Prime Minister said that the whole country is focusing on completing, first of all, the expressway system with an important transition step of assigning localities to be investors so that the project can be implemented more quickly.

The Prime Minister compared the transfer and assignment of project investor roles from ministries to localities as an important step contributing to infrastructure development.

This is also an experience that needs to be applied when implementing the North-South high-speed railway project. In addition, the Prime Minister noted that decentralization must go hand in hand with resource allocation and increased inspection and supervision.

Emphasizing that only public-private partnerships can develop infrastructure, the Prime Minister cited the recent implementation of a series of important transportation projects in this direction. For example, with aviation, the Prime Minister emphasized the need to invest in airports and form airlines to 'self-manage, compete and develop'.

'If there is only Vietnam Airlines, people will not enjoy cheap prices. There must be competition, creating a mechanism for public and private cooperation,' the Government leader stated his opinion. The Prime Minister also cited the example of Van Don airport being handed over to the private sector and being implemented very quickly, taking only 2 years instead of 5-7 years as expected. Or recently, Phu Quoc airport and Gia Binh airport were also boldly handed over to the private sector.

'Infrastructure requires huge investment, without a mechanism to mobilize resources it cannot be done', the Prime Minister reiterated.

In terms of institutions, the head of the Government has thoroughly abandoned the mindset of 'if you can't manage, then ban'. Instead of thinking of law as management, we must build laws to facilitate development. Law-making must therefore start from practice, closely follow practice, and use practice as a measure.

Regarding the operation of the two-level local government, the Prime Minister acknowledged the initial positive results after a few months of the new apparatus being put into operation. Accordingly, the entire system has transformed from management to creation and serving the people.

'With a system and habits that have been formed for 80 years, it is impossible to change quickly, but we are not perfectionists, not hasty, and do not miss opportunities,' according to the Prime Minister.

The Head of Government emphasized the need to build an apparatus suitable to the functions, tasks and powers, on that basis to build job positions and have a salary policy for civil servants according to job positions.

National Assembly delegate of Bac Ninh province Tran Thi Van said: The political report needs to continue to emphasize the requirement to innovate the growth model, strongly shifting from extensive to intensive development, based on science - technology, innovation and digital transformation.

To achieve the 2030 target of social labor productivity, it is necessary to increase by an average of 6.5-7%/year and many other targets set forth in the report... It is necessary to form a national innovation ecosystem, support businesses to invest in research, transfer technology, develop data infrastructure, artificial intelligence, and encourage entrepreneurship among young people.

According to delegate Tran Thi Van, developing new economic sectors, green economy, digital economy, and circular economy is an inevitable trend. It is necessary to identify green economy as a new growth engine that both creates development space and reduces environmental and climate risks.

Accordingly, it is necessary to issue and implement preferential policies for renewable energy, green transport, green construction and circular agriculture; and promote the transition from consumptive industrial production to low-emission industry.

At the same time, it is necessary to strongly develop a circular economy of recycling, reuse, and reduction of plastic waste towards a zero-waste, environmentally friendly economy. This is not only an environmental issue but also an opportunity to form new industries and businesses, creating sustainable jobs.

Finally, delegate Tran Thi Van said that it is necessary to continue perfecting institutions, improving the investment and business environment, encouraging the private sector to develop healthily, becoming an important driving force of the economy.

Bac Ninh's reality shows that, besides FDI corporations, if properly supported, domestic enterprises can completely participate more deeply in the global value chain...

It is necessary to review and remove legal barriers and complicated administrative procedures to increase predictability and stability of policies. Promote administrative procedure reform and apply digital technology in public service provision.

In addition, the private economic sector currently contributes about 42 - 43% of GDP, but average productivity is only half of the FDI sector.

There should be preferential mechanisms and policies to support small and medium-sized enterprises in accessing credit, land, and technology; and forming industry clusters and domestic supply chains so that Vietnamese enterprises can participate more deeply in the global value chain.

By 2030, the private sector is expected to contribute over 55% of GDP, be the pillar of a self-reliant economy, and be highly resilient to external fluctuations.

PV (synthesis)

Source: https://baohaiphong.vn/quy-mo-nen-kinh-te-voi-dinh-huong-tang-truong-nhanh-nhung-ben-vung-525615.html