Boosting economic reform for sustainable growth

(VOVworld) – Vietnam, as a middle-income country, has been facing various challenges including lagging behind and the middle-income trap. The global development experience shows that countries that persevere in pursuing reforms, create an effective institutional and governance framework, and improve their competitiveness can overcome these challenges. The Vietnamese government is determined to drastically reform its thinking and actions to create a sustainable and inclusive economy.

Boosting economic reform for sustainable growth - ảnh 1

Prime Minister Nguyen Tan Dung said in his New Year Message that in order to regain growth momentum and ensure sustainable development the main impetus must come from institutional reform. Reforming and improving the institutions of the market economy is Vietnam’s most pressing work right now.  

Reforming thinking and long-term vision

Seeking new ways to build a sustainable economy with social and environmental harmony is not only an urgent necessity but also an important driver of economic recovery nationally and globally.

Over the past 30 years of renewal, Vietnam has faced many difficulties. Economic development has been unstable. The quality of growth, productivity, and competitiveness has been low. Despite an abundant workforce, the number of untrained workers is high. A large part of the population is struggling. There are environmental problems and climate change effects.

In its 2011-2020 socio-economic, Vietnam pledges to enact reforms with three strategic breakthroughs including improving its market economy institutions. Deputy Prime Minister and Foreign Minister Pham Binh Minh repeated Vietnam’s policy at an international conference “Economic reform for sustainable and inclusive growth” in Hanoi early this week.

"Vietnam will enhance economic institution reform. The state will ensure that the market plays an important role in resource allocation and create tools and policies to guarantee social equality and progress. Vietnam is accelerating reform and equitization of state-owned enterprises to create a level playing field for all people and enterprises of all economic sectors."

Vietnam’s economic reforms have drawn attention from international donors and organizations. UNDP General Director Helen Clark said during her visit to Vietnam early this month that Vietnam is a success story of growth and implementation of the UN Millennium Development Goals. Clark said: “Facing with more slowly economic growth, the Vietnamese government has actively reformed the “second generation” economy to boost growth. Vietnam has obtained remarkable achievements in socio-economic progress in the past 2 decades. Strategies to boost sustainable and inclusive economic growth will benefit Vietnamese people now and in the future.” 

Boosting international integration in the reform process

In a rapidly changing world, multi-layer economic cooperation, including Free Trade Agreements with a broader level of market opening, has generated a new space for development and great demand for internal changes. Vietnam has entered an important period of development which will require a determination to change and integrate into the world. Clark again: “Vietnam has many advantages including young, competitive workforce, abundant natural resources, and favorable geographical position in the center of a dynamic region. With wise policies, Vietnam will have a bright future.”

Besides internal strength and a desire to develop, experience and recommendations from the international community will be invaluable in helping Vietnam overcome its difficulties and realize its vision of becoming an industrial nation by 2020.

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