Strategy of Vietnam economic development in 5 years 2021 - 2025
- QTH-3Q19 Nguyen Thi Nhung
- Feb 20, 2022
- 3 min read
Updated: Mar 28, 2022
General goals
Assuring rapid and sustained economic growth in order to improve macroeconomic stability and advance research, technology, and innovation. At the same time, maximize the country's potential and advantages. Furthermore, to increase the economy's productivity, quality, and competitiveness, concurrently implement remedies to successfully overcome the impact of the Covid-19 pandemic, recover rapidly, and build the economy.
Detail goals
In the last five years, the average economic growth rate (GDP) has been around 6.5-7% every year. GDP per capita is expected to be at 4,700-5,000 USD by 2025. Set a target for total factor productivity (TFP) to contribute roughly 45 percent to growth at the same time. The average annual increase in social labor productivity is about 6.5 percent. The urbanization rate is at 45 percent, and the processing and manufacturing industries account for more than a quarter of GDP. The digital economy accounts for almost 20% of GDP, while the state budget deficit rate averages 3.7 percent of GDP from 2021 to 2025.
Main tasks and solutions
The Resolution lays forth a number of essential tasks and solutions for achieving the above goals. The first goal is to prioritize COVID-19 prevention and control, as well as economic recovery and development, according on the current situation and unique places. Continue to construct the development institution, first and foremost, the socialist-oriented market economy, in a timely manner.
First, create an independent economy by increasing the economy's adaptability and resilience. In the early years of the administration, quickly rebuild the economy and continue to drive industrialization and modernization. Creating national and international supply chains, value chains, quality assurance, and traceability rules. Prioritize spearhead industries, high-tech industries, and supporting industries in the development of a number of platform industries.
Second, agricultural restructuring should be accelerated; rural economic growth and high-efficiency agriculture should be linked to new rural construction. To modernize and develop large-scale concentrated commodity agriculture in a sustainable manner. Encourage the growth of green agriculture as a means of coping with climate change. Promoting consumption of key items with potential in developing markets.
Third, encourage the growth and improvement of service sectors, with a focus on industries with competitive advantages and high added value. Restructure public investment in a way that will forcefully overcome the spreading and long-term condition. Complete the restructuring of state-owned firms by 2025 in order to assure progress and efficiency. Handle the flaws and losses of state corporations and corporations completely. Develop and consolidate a number of large-scale, efficient, and competitive state economic groups. Restructuring credit institutions and dealing with bad debts should be more drastic and effective.
Fourth, speed up economic restructuring in association with the development of the digital economy and the innovation of the growth model. Increase resource mobilization and effective usage, as well as the pace with which the infrastructure system is built and developed. The resolution also calls for fostering regional connectivity, industrial zones, and urban development. Economic growth is linked to the consolidation and enhancement of defense and security capabilities.
Fifth, research appropriate zoning and improve regional planning quality in the direction of integration and multi-sector planning. Researching and enacting coordination regulations; promoting the development of regional, intra-regional, and inter-regional linkages; establishing regional coordination institutions, mechanisms, and policies to support the role of key economic regions as growth engines; and establishing new regional economic zones as soon as possible. Fresh growing pole, new driving force
Finally, for urban growth and the urban economy, diversify, exploit, and effectively use resources, as well as reinvent urban finance. Attempt to establish at least three smart cities in each of the three primary economic zones of the North, South, and Central. To mix urban and rural growth by heavily developing satellite towns of a number of large cities. Grow coastal ecological urban regions, build and develop strong marine commercial hubs, and protect sovereignty over sea and islands at the same time. To establish an economic and financial center with breakthroughs and high international competitiveness, connect with important economic centers in the region and the world, select a number of places and metropolitan regions with specific advantages. Annually report to the National Assembly to evaluate the pilot implementation of specific mechanisms and urban government.
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