Innovating growth models, quality and sustainability

Establishing a new growth model

Resolution of the 14th Party Congress sets a goal to strive to achieve an average growth rate of gross domestic product (GDP) for the period 2026 - 2030 of 10%/year or more.

The goal of high growth poses a significant challenge, requiring Vietnam to strongly shift to a growth model based more on quality, efficiency and productivity.

The Government's action program to implement the Resolution of the 14th National Congress emphasized the establishment of a new growth model, restructuring the economy, taking S&T, innovation and digital transformation as driving forces. At the same time, promoting growth associated with macroeconomic stability, controlling inflation, ensuring large balance; mobilizing resources, renewing traditional driving forces and strongly exploiting new driving forces.

Many favorable conditions to promote new drivers

Talking to a reporter from Lao Dong Newspaper, Assoc. Prof. Dr. Bui Quang Tuan - Vice President of the Vietnam Economic Science Association, former Director of the Institute of Economics - said that for a long time, Vietnam's growth mainly relied on resources, capital, cheap labor and assembly, with a low position in the global value chain. This model once helped the economy grow rapidly, but now it has gradually reached its limit.

When reviewing the factors that are likely to create growth in the new context, it can be seen that S&T, innovation and digital transformation are the outstanding driving forces. These are fields that are making strong breakthroughs in the world and Vietnam has also clearly identified this as an important development direction to create new growth drivers for the economy" - Assoc. Prof. Dr. Bui Quang Tuan said.

The Vice President of the Vietnam Economic Science Association also stated that Vietnam has many favorable conditions to promote these new drivers.

First of all, we are a country with a young population structure and are in the golden population period. This is a very favorable factor for accessing technology and promoting the digital transformation process, because only when there is a young labor force can the ability to adapt and absorb new technologies take place quickly.

In addition, Vietnam is in a fairly favorable international context. This creates favorable conditions for Vietnam to access resources, technology as well as innovative ideas from outside.

After nearly 40 years of renovation, Vietnam has also accumulated important prerequisites for development resources. These factors show that establishing a new growth model at the present time is completely appropriate. It both meets the practical requirements of the economy and is based on the comparative advantages that Vietnam has," said Assoc. Prof. Dr. Bui Quang Tuan and proposed a new growth model based on four pillars and three platforms. The four pillars include S&T; digital economy and digital transformation; human knowledge associated with innovation culture and green growth.

In which, S&T and research and development will play a direct role in creating new products and technologies. The digital economy and digital transformation, including artificial intelligence, are developing very rapidly and will become an important growth engine of the economy. The third pillar relates to human resources and innovation culture, because a society that wants to develop strongly needs to form a wave of creativity and entrepreneurship throughout society. The fourth pillar is green growth, towards sustainable development through green economy sectors, clean energy, circular economy and mechanisms such as carbon markets.

For these pillars to operate effectively, three basic foundations are needed. The first foundation is a constructive institution, that is, building a legal and policy system to encourage innovation, creating conditions for individuals and businesses to dare to think, dare to do and accept risks in innovation. The second foundation is a market mechanism, helping to allocate resources effectively and encourage competition. Regarding the goal of double-digit growth, Assoc. Prof. Dr. Bui Quang Tuan said that this can be achieved if Vietnam effectively exploits new growth drivers.