To achieve high growth, Vietnam must create values that it owns

Thạch Lam |

To achieve high growth rates, it is necessary to strongly shift to a deep growth model, based on science, technology, and innovation.

After 40 years of Doi Moi, Vietnam has built an important development foundation, maintained a relatively high growth rate and rapidly expanded the scale of the economy. Average growth in 40 years of Doi Moi reached about 6.7%/year with an investment level of about 30% of GDP; in the period 1991-2000 alone, average growth reached 7.6%/year and had six consecutive years of growth of over 8%.

However, the trend of gradually decreasing growth in long-term periods is still biased towards breadth, heavily dependent on external factors, especially the FDI sector; while capital accumulation, labor productivity and technological innovation have not improved strongly enough.

According to Assoc. Prof. Dr. Nguyen Ngoc Son, Vice Rector of the School of Economics and Public Management, Head of the Department of Planning and Development, National Economics University, to achieve high growth rates from now to 2045, the growth model must be strongly transformed, from broad growth to deep growth, based on science, technology, and innovation. In particular, it is necessary to create unique values of Vietnam, values created by Vietnam.

Regarding institutions, I made a comparison based on the World Governance Index (WGI) set used internationally to assess institutional quality. Here, we divide it into three groups of countries. The index is assessed in the range of -2.5 to 2.5 points; the highest level is 2.5 and the lowest is -2.5.

Currently, Vietnam's indicators are at levels from -0.5 to 0. Among them, some of our indicators are still very low, such as voice and accountability; the effectiveness of the Government; the quality of regulations; the rule of law. We have had very strong policies, improvements and efforts to prevent and combat corruption; however, our corruption control index is still not high," Assoc. Prof. Dr. Nguyen Ngoc Son assessed.

According to Assoc. Prof. Dr. Nguyen Ngoc Son, the issue is to improve the quality of institutions, create a motivational mechanism. In the past time, Vietnam has issued many resolutions on innovation, private enterprises and many related policies...

However, the important thing is how to turn those resolutions and orientations into specific results, creating added value and specific values in the development process.

To implement in the coming period, for the model towards, Assoc. Prof. Dr. Nguyen Ngoc Son proposed, first, national orientation and central capacity. Countries must liberate and nurture domestic capacity through long-term vision; effective coordination; grasp global trends; build strength to survive, maintain, innovate and develop.

The second is autonomy, integration and linkage between the Government, businesses and the technology sector. A professional government apparatus, based on the rule of law, must be closely connected with businesses and the technology sector.

Third is focused industrial policy, accompanied by effective discipline. Conditional support is needed such as credit, procurement and standards. In particular, it is necessary to build a system of priority procurement standards and policies for domestic enterprises, especially domestic private enterprises, with clear timelines and termination clauses.

Fourth is new human resources and capabilities. Investment is needed in education, technology procurement skills, and research and development.

Fifth is infrastructure, development finance and digital platforms. It is necessary to upgrade logistics capabilities, access to capital, technical infrastructure and shared platforms such as AI, IoT or cloud data. These contents need to be developed on an ecosystem. Especially in the digital age, this is a very important factor, which can help us shorten the gap with developed countries.

Sixth is strategic opening up and global integration. We attract FDI but must build domestic linkages, meet standards and upgrade domestic enterprises.

Finally, evidence-based governance and social consensus.

Thạch Lam
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