Vietnam to invest in human capital: World Bank chief economist

(VOVWORLD) - Vietnam has set up initiatives to foster innovation and ramped up the application of science and technology in socio-economic development and state management.

Vietnam to invest in human capital: World Bank chief economist - ảnh 1Prime Minister Nguyen Xuan Phuc (2nd from right, 1st row) and participants to the Vietnam Reform and Development Forum 2019. (Photo: 

It has worked to innovate and promote start-up ecosystems, according to Minister of Planning and Investment Nguyen Chi Dung at the Vietnam Reform and Development Forum in Hanoi on Thursday. 

“The world we are living in is changing rapidly with ever-increasing complexity and growing economic competitiveness. The Industry 4.0 is one of groundbreaking technology which can change the operations of businesses and the whole economy. The sharing economy and circular economy are becoming popular. In this new socioeconomic context, developing countries, including Vietnam, need to seize opportunities and address challenges to keep up with developmental trends.  Moreover, in realizing the goal of prosperity, overcoming the middle-income trap alone is such a challenge, requiring Vietnam to push innovation and reform its institutions," Dung said.

It was suggested at the forum that Vietnam cement its modern economic system, free its market of production bottlenecks, refine administrative operations, and increase the added value of processed or manufactured products.

Pinelopi Koujianou Goldberg, the World Bank chief economist, said Vietnam should participate more in global value chains, improve its human resources, and continue on in its international integration.

She said: “It becomes more challenging, then, its skilled labor force and increases in human capital are crucial, and that is the stage in which Vietnam finds itself right now. So the main message of our work at the WB is that countries that want to move up in the global value chain need to invest in human capital. When it comes to making it to the top stage, so participation in innovation and intensive activities, in some senses, the requirements are similar to the ones that are needed for countries who participated in advanced manufacturing, so one is its skilled labor force, one is human capital.”

Prime Minister Nguyen Xuan Phuc said Vietnamese enterprises should make full use of their innovative labor force and step up the application of new technologies to gain greater benefits when joining the global value chain.

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