'Vietnam is entering a phase that will determine the country's destiny'

TPO - "Vietnam is entering a development phase that will determine the country's destiny. The target of double-digit economic growth in the coming period is not only an ambition, but also a practical requirement, aiming to quickly narrow the development gap with leading countries, resolve the risk of falling behind; enhance endogenous capacity, resilience, build an independent and self-reliant economy; create a worthy position for Vietnam in the international arena..." - said economic expert Ha Huy Ngoc.

Science , technology and innovation are the most important pillars

Speaking with Tien Phong reporter , Dr. Ha Huy Ngoc - Director of the Center for Research on Local and Territorial Economic Policy and Strategy, Vietnam and World Economic Institute - said that the trend of transitioning to a green economy and circular economy is becoming an inevitable, objective, irreversible trend and is the goal of many countries in the world to develop economic prosperity, environmental sustainability and social justice.

At the 26th United Nations Climate Change Conference (COP26), 147 countries committed to achieving net zero emissions (PTR0) by the mid-21st century, and by the end of 2021, 50 countries and territories have issued low-emission strategies towards green and clean with a long-term vision to the mid-21st century. South Korea, Canada, the European Union, Japan, as well as developing countries such as China, Malaysia, and South Africa have all made great strides in building a legal framework, strategy, roadmap, and implementing specific actions towards green growth.

The achievements of innovation have helped Vietnam, from a latecomer, catch up, move forward, and surpass the civilizational trends of humanity and countries in the region, to become a pioneering country, a global model in the transition to a green economy and circular economy.

Wind turbine towers in Dam Nai, Phan Rang, Khanh Hoa province. Photo: Bui Van Hai.

Vietnam has also made progress in building momentum to promote green growth through the promulgation of important strategies and policies along with strong commitments in the world market. Typically, the adoption of the National Strategy and Action Plan on Green Growth for the period 2021-2030, the commitment to achieve PTR0 at COP26 and in Vietnam's Nationally Determined Contribution (NDC).

Vietnam is at risk of falling into the middle-income trap if it skips this second stage. In Vietnam, according to a report by the Ministry of Science and Technology (2020), from 2015 to 2020, Vietnam's average economic growth rate was about 5.6%, of which 3.06% growth was due to investment; 3.29% due to technological innovation but negative (-1.36%) due to issues related to efficiency improvement.

Currently, the country is facing the need for strong, strategic and revolutionary policies and decisions to create new momentum, breakthroughs in science, technology and innovation development, to bring the country to develop strongly in the new era - the era of prosperity, realizing the goal that by 2030, Vietnam will become a developing country with modern industry and high average income, and by 2045, it will become a developed country with high income.

Thus, the shortest, fastest, only and most sustainable way to escape the middle-income trap and become a developed country is to develop science, technology and innovation.

The target of double-digit economic growth is not just an ambition.

Mr. Ha Huy Ngoc affirmed: “We are entering a development phase that determines the fate of the country. The 13th National Party Congress has set a very clear goal: By 2030, Vietnam will become a developing country with modern industry and high average income; by 2045, it will become a developed country with high income following the socialist orientation. To realize that aspiration, the urgent requirement is: Vietnam must achieve a high, continuous, stable and sustainable economic growth rate in the coming decades”.

Accordingly, the target of double-digit economic growth in the coming period is not only an ambition, but also a practical requirement, aiming to: Quickly narrow the development gap with leading countries, eliminate the risk of falling behind; enhance endogenous capacity, resilience, build an independent and self-reliant economy; create a worthy position for Vietnam in the international arena.

“If we do not promptly create a foundation to establish a new growth model, Vietnam will find it difficult to avoid the risk of falling into the middle-income trap. Therefore, the requirement is: We must create real breakthroughs, drastic changes in development thinking and actions,” said Mr. Ngoc.

According to Mr. Ngoc, Vietnam’s current growth model, which still relies heavily on resource exploitation, increased public investment and the use of cheap labor, is gradually running out of room. Extensive growth has played a role in the four decades of Doi Moi, but now it no longer meets the expectations of a dynamic, creative and globally competitive economy.

To achieve double-digit growth in the new era, Vietnam needs to establish a new growth model, focusing on quality, efficiency in the use of resources, and labor productivity. This model must take science and technology, innovation, and high added value as its core.

Two Tucano-R aircraft were made by Vietnamese hands and minds using new technology. Photo: Duong Trieu.

Along with promoting the application and popularization of technology in all manufacturing and service sectors, we need to strongly shift to creating products with high content of knowledge, technology and cultural identity. In which, the private economic sector plays the most important driving force of the economy, is the pioneer force promoting growth, creating jobs, improving labor productivity, national competitiveness, better connecting and moving towards dominating more and more regional and global supply chains.

The achievements of innovation have helped Vietnam, from a latecomer, catch up and progress with the civilization of humanity and countries in the region, to become a pioneering country, a global model in the transition to a green economy and circular economy.

Vietnam is currently in the midst of major institutional changes, with a restructured central government apparatus and a two-tier local government system. These changes may only occur once in a generation. They are occurring alongside determined efforts to refine and strengthen the institutional framework that has characterized much of Vietnam’s recent history.

Graphics: Loc Lien.

While the country has historically undertaken reforms cautiously and in a piecemeal approach that has been successful – major, groundbreaking institutional shifts, such as those initiated in August 2024, have not always happened.

These transformations address some of the country’s most pressing challenges, focusing on improving the performance of the state apparatus at both the central and local levels and enhancing accountability at all levels of government. In addition, the spirit of institutional reform can pave the way for further progress. As the country sets out its ambition to become a high-income economy by 2045, deeper reforms are still required to boost growth in a sustainable manner.

Green production and recycling model at Trang Due Industrial Park, Hai Phong City. Photo: Loc Lien.

Vietnam needs a modern, transparent, accountable institutional framework that promotes healthy competition, supports business innovation, and effectively attracts social resources. For example, eliminating bottlenecks in public investment procedures is the first step, but to go further, it is necessary to rethink the assignment of tasks and responsibilities between the central and local levels. Streamlining the state management apparatus and improving incentive mechanisms, including through salary mechanisms, are necessary, but increasing the motivation of civil servants is a much more challenging task.

In particular, it is necessary to eliminate the situation of “overlapping institutions and conflicting policies”, and build the capacity to manage economic policies in a flexible, proactive and long-term vision. Institutions cannot be just a set of administrative rules - they must be a system that promotes innovation, links the central government with localities, and synchronizes the public and private sectors.

Source: https://tienphong.vn/viet-nam-dang-buoc-vao-giai-doan-co-tinh-chat-quyet-dinh-van-menh-dat-nuoc-post1774545.tpo