Vietnam’s Economic Reform: A Path Towards Sustainable Growth

Deputy Prime Minister Nguyen Van Thang of Vietnam has underscored the crucial need to revamp the nation’s growth model, equating high growth and sustainability to “two wings of a bird” that must function in tandem. His comments came during a National Assembly session focused on addressing pivotal economic challenges and outlining future strategies.

Thang noted that while the quality of Vietnam’s economic growth has improved recently, several obstacles persist. These include slower-than-expected productivity increases, limited technological advancement, and a sluggish progression in core industries and strategic technologies.

He pointed out that achieving rapid and sustainable growth is increasingly challenging due to economic uncertainties, compounded by Vietnam’s openness to global markets. Consequently, sustaining macroeconomic stability is a critical priority for the government.

The Deputy Prime Minister asserted that evolving the growth model is vital for avoiding the middle-income trap and enabling Vietnam to compete on a global scale. He advocated for a new model founded on innovation, effective resource use, and modern development frameworks.

To stimulate future growth, the government intends to concentrate on emerging sectors, including the digital economy, data economy, green economy, and circular economy. Science, technology, and innovation will be pivotal in fostering these new growth engines.

Moreover, Vietnam plans to extend fiscal policies aimed at bolstering economic growth by increasing budget expenditures and investing significantly in developmental initiatives. Enhancing capital markets, particularly the stock market, is also on the agenda to improve long-term funding opportunities for businesses.

The Deputy Prime Minister highlighted the necessity for developing a skilled workforce, especially in areas like artificial intelligence, semiconductors, and nuclear energy. Concurrently, reforms are being implemented to enhance healthcare systems, education, and administrative efficiency to support sustainable national growth.