Institutional breakthrough, rapid growth

VTV.vn - Institutional reform and administrative procedure reduction are becoming the "golden key" to help Vietnam liberate resources, paving the way for double-digit growth aspirations.

Vietnam is facing a major challenge to realize its double-digit growth aspiration in the coming period. Cutting administrative procedures and reforming institutions are the "golden keys" to unlocking the economy 's internal production capacity.

"Double-digit" target - challenge of traditional growth model

After a strong recovery from the impact of the pandemic, Vietnam's economy is standing at an important threshold of the growth model transformation process to make a breakthrough. According to the General Statistics Office ( Ministry of Finance ), GDP in the third quarter of 2025 increased by 8.23% over the same period and is expected to reach about 8.3-8.5% for the whole year. This achievement helps Vietnam continue to affirm its position as one of the most dynamic economies in the region. However, the greater aspiration that the Government and experts are aiming for is the target of double-digit average growth in the period 2026-2030.

To realize this aspiration, it is clear that Vietnam cannot continue to rely entirely on old driving forces such as exploiting cheap labor, credit growth and public investment alone. These driving forces have begun to show their limits and are not strong enough to put the economy on a new "lightning-fast" growth trajectory. Instead, it is necessary to create systemic breakthroughs, focusing on unlocking endogenous resources.

When businesses no longer have to worry about unnecessary procedures, they can focus all their efforts on production and innovation.

The most important factor today is institutional reform and the business environment. Despite many efforts, the burden of administrative procedures and business regulations remains a major barrier, creating high compliance costs, eroding confidence and delaying investment and business decisions. Especially in the context of an unstable global economy, the search for stability and transparency in policies by multinational corporations and domestic investors is more urgent than ever.

Economists and the business community agree that Vietnam's potential growth is being "frozen" by overlapping and complex regulations. If the time and money costs of administrative procedures can be reduced, huge resources will be released, creating a multiplier effect for productivity and investment. Economist Dr. Nguyen Minh Phong commented that the most important goal of administrative reform is to create openness, fairness and predictability of policies. When businesses no longer have to worry about unnecessary procedures, they will focus all their efforts on production and innovation. This is a competition of speed and cost, where administrative procedures are a fatal weakness if not thoroughly overcome.

The transformation of the growth model requires a shift from extensive investment (increasing quantity) to intensive investment (increasing quality and efficiency). To achieve double-digit growth, the growth rate of social labor productivity needs to reach 6-7% per year, a target that cannot be achieved if compliance costs remain high and policy risks remain. The change must come from creating a transparent, safe and highly predictable business environment, putting businesses in a position to compete fairly in the international arena.

Domestic enterprises, which are facing fierce competitive pressure, are the ones who feel this burden most clearly. Ms. Le Thi Minh Hoa, Director of Minh Viet Industrial Equipment Manufacturing Company, shared: "We want to invest in expanding the factory, but the process of applying for construction permits, fire prevention and fighting, and land procedures takes too much time, sometimes longer than the time to install the production line. If we can save 6 months of procedures for each project, we can bring products to market sooner, creating higher revenue and profit, which is the real growth driver." This is clear evidence that the liberalization of institutions is not just a reform on paper, but a direct capital and time lever for enterprises.

Institutional reform – the invisible capital of growth

In that context, institutional reform and administrative procedure reduction are not only administrative tasks but have become breakthrough macroeconomic solutions. This is the main driving force to create a difference, attract high-quality investment capital, promote innovation and build market confidence.

The Government is vigorously implementing resolutions to cut 50% of the time and 50% of the cost of complying with administrative procedures compared to 2024. The focus is on digitizing 100% of records and results of handling administrative procedures, providing online public services throughout the process, as well as strictly implementing policy impact assessments right from the stage of drafting legal documents. These commitments demonstrate the highest political determination to create a leap forward in the business environment.

Experts say that in the new development stage, the most important driving force for growth does not only come from investment capital or exports, but lies in institutional reform and improving the quality of national governance.

Administrative reform becomes an imperative to liberate productive forces and unlock resources for growth.

Assessing the role of reform, Mr. Phong said that the double-digit growth target in the next 5 years is a big challenge but is completely achievable if Vietnam creates institutional breakthroughs. “If we only rely on exports, the economy will hardly be able to make a breakthrough in the short term. It is necessary to promote domestic demand more strongly and especially administrative and institutional reform,” he said. According to him, an open, transparent and streamlined institutional system will create a huge “invisible capital source” for the economy, helping businesses reduce costs, improve productivity and increase competitiveness. When institutional reform is accompanied by macroeconomic stability, Vietnam will have a solid foundation to maintain high growth and move towards the aspiration of breakthroughs.

Administrative reform is no longer a slogan, but is becoming a command to release productivity and unlock resources for growth. Macroeconomic stability today is not only about keeping inflation low, but also about transparency, consistency and predictability of policies. When the “rules of the game” are clear and procedures are streamlined, businesses will boldly invest long-term, shifting capital from a defensive state to expanding production and business.

According to a survey by the Vietnam Chamber of Commerce and Industry (VCCI) in 2025, 75% of FDI enterprises assessed the stability and predictability of policies as more important than tax incentives. This shows that institutional reform is not only of administrative significance but has become a core element of national competitiveness.

A clear example is in the public finance sector, the Ministry of Finance has implemented a program to reduce and simplify administrative procedures by 2025, focusing on taxpayers. Strong reforms in tax, customs and digital transformation have significantly shortened the time for tax declaration, refund, and customs clearance, saving hundreds of working hours each year for businesses, while increasing transparency and market confidence.

Institutional reform is therefore not only a “necessary condition”, but has become a “growth engine” – a stimulant to help Vietnam move faster towards its double-digit growth target in the next decade, with the foundation of a streamlined apparatus, transparent policies and a spirit of serving businesses as the center./.

Source: https://vtv.vn/the-che-but-pha-tang-truong-but-toc-100251022111331038.htm