New institutions for new growth models
After 40 years of Doi Moi (Renovation) (1986-2026), Vietnam has achieved socio-economic development achievements of historical significance, from a poor centralized planned economy to a middle-income economy with a GDP scale of 514 billion USD. However, according to Prof. Dr. Tran Thi Van Hoa - National Economics University, the current country's development model is revealing many limitations such as low quality of life, large environmental pollution, and growth still mainly depends on investment capital and cheap labor...
With the above context, Prof. Dr. Tran Thi Van Hoa emphasized that innovating the country's development model is an inevitable and urgent requirement when Vietnam enters a new development stage - a stage where traditional growth drivers (capital, cheap labor, resources) have reached their limits, while new drivers (science and technology, innovation, digital transformation, green economy) require a completely different institutional framework and capacity.
The achievements of 40 years of Doi Moi show that Vietnam is fully capable of creating "miracles" of development when it has a correct vision, high political determination and appropriate institutions. However, the real test lies in the ability to transform resolutions into practical policies, turn visions into specific actions, and narrow the gap between policy design and implementation capacity" - Prof. Dr. Tran Thi Van Hoa analyzed.
To truly enter the "era of national rise", Prof. Dr. Tran Thi Van Hoa said that the prerequisite is to implement synchronously and drastically solutions with a focus on institutional breakthroughs, promoting science and technology, innovation and developing high-quality human resources - three factors that both theory and international practice affirm as the key to sustainable development.
First, promote science - technology and innovation as the main driving force. Second, complete the socialist-oriented market economy institution. Third, restructure the economy associated with digital transformation and green transformation. Fourth, allocate resources reasonably in an efficient direction. Fifth, link growth with environmental protection and social justice. Sixth, improve the capacity for international integration and regional economic development" - Prof. Dr. Tran Thi Van Hoa proposed.
State leads and creates development
Switching to a growth model based on science, technology and digital transformation not only improves productivity but also creates new motivation and increases national competitiveness.
According to MSc. Tran Dinh Nuoi - Institute of Economics of Vietnam and the World, Vietnam needs to strongly shift its growth model from relying on cheap labor and resource exploitation to relying on productivity, knowledge and innovation. This requires Vietnam to enhance the role of science and technology in the economy, especially through increasing investment in research and development and promoting the application of technology in production and management. At the same time, it is necessary to develop the national innovation ecosystem in a synchronous and effective direction, in which strengthening links between the State - research institutes - universities - businesses.
In particular, it is necessary to innovate the role of the State in the direction of development creation, focusing on perfecting institutions, reforming administrative procedures and building a favorable business environment. The State needs to play a leading role in new fields such as digital transformation, green economy and renewable energy, and at the same time support businesses in the early stages of the innovation process.
Promote comprehensive digital transformation, from the public to the private sector, to improve management efficiency and competitiveness. Develop high-quality human resources, especially in the fields of science and technology, digital technology and innovation management.
Finally, Vietnam needs to take advantage of international integration and geo-economic position, develop industries with potential to participate deeply in the global value chain, and at the same time learn and flexibly adjust international models suitable to domestic conditions. Choosing the right development focus, combining innovation and national characteristics will be a decisive factor for Vietnam to achieve rapid and sustainable growth in the coming period" - M.A. Tran Dinh Nuoi affirmed.
