Vietnam’s Economic Development Strategy 2021-2030
- QTH-3Q19 Nguyen Thi Nhung
- Feb 20, 2022
- 4 min read
Updated: Mar 28, 2022
Introduce
Promote the perspective of national development, strongly bring into play Vietnam's economic advantages and the international context. In addition, mobilize all resources, develop rapidly and sustainably with the goal of becoming a developing country with modern industry, high middle income by 2030 and a developed country with high income by 2030.
International context
Despite continuing progress, globalization and international integration still face many obstacles. Populism and protectionism tend to increase. World economic growth and international trade and investment tend to decrease. In particular, the Covid-19 pandemic has complicated developments, causing a severe recession and global economic crisis. This situation is likely to persist into the early 20th century, resulting in a profound change in the economic order, the structure of the economy, the mode of global governance, the way the world's economy operates.
Sustainable development has become an all-encompassing trend in the world; Digital economy, circular economy, green growth are the development models chosen by many countries. The 2030 Agenda for Sustainable Development (SDGs) has a great influence on the mode of growth, economic cooperation, trade and investment in the world. Shifting to renewable energy, green energy will be a clearer trend in the coming period. Science and technology innovation and the Fourth Industrial Revolution are happening very quickly and in many directions on a global scale. In addition, digital technology will change state management methods, production and business models, consumption and promote the development of the digital economy.
The trend of urbanization and smart city development is increasing. Competition among countries in becoming financial and innovation centers is increasing. Non-traditional security issues, natural disasters, epidemics, climate change increase. Moreover, the use of transboundary water resources (especially the Mekong River) poses unprecedented challenges for sustainable development. Positively, the Asia-Pacific region has an important position in the world and is an important driving force of the global economy. However, this area has potential destabilizing factors due to strategic competition, disputes over territory and resources. The situation in the East Sea is also becoming more and more complicated, seriously threatening the peace and stability of the region and the investment and development environment.
Domestic context
After 35 years of renovation, our country has achieved great achievements of historical significance. The position and power of our country has grown much stronger in terms of scale, the competitiveness of the economy has been increased and the autonomy has been increased. The quality of economic growth has been gradually improved, the economic structure using input factors for the economy has been significantly improved, attracting large foreign direct investment (FDI). The private sector contributes more and more and becomes an important driving force for the country's economic development.
However, the economy still has limitations and potential risks. The foundational factors for Vietnam to soon become an industrialized country in the direction of modernity are still low compared to the requirements. The level of science and technology, productivity, and competitiveness are still low. Moreover, the ability to withstand and adapt to external impacts is still limited. GDP growth tends to slow down, the goal of building the country into an industrial country is still challenging.
The process of urbanization continues to take place rapidly, creating great pressure on the need for infrastructure development and environmental pollution treatment. Challenges of exploitation and sustainable use of natural resources. In particular, the Covid-19 epidemic may have a negative impact, lasting until the early years of the Strategy period. Therefore, it is not only necessary to deal with risks and overcome challenges, but also to be proactive about new opportunities when the world economic structure and global governance are reshaped.
In the new difficult context, it is necessary to renew development thinking, working methods and accelerate institutional reform. At the same time, drastically implement digital transformation, build a digital economy, stimulate investment demand for large-scale infrastructure development, promote domestic consumption, and create jobs. Focus on redirecting and reorganizing economic activities. There are policy solutions to overcome the impact of the Covid-19 epidemic, quickly recovering the economy. Promote the formation of linkage chains, domestic value chains, strongly develop the domestic market. Gradually form a new national production capacity with self-reliance and effective resistance to external shocks.
Vision and perspective of strategic development
Dr. Nguyen Nhu Quynh, Deputy Director in charge of the Institute of Strategy and Financial Policy, said that national financial policy must play a pioneering role in mobilizing and effectively using domestic and foreign resources. At the same time, it is necessary to associate financial policies with in-depth growth model innovation, improve growth quality, and prioritize economic development goals in each period. Therefore, in order to perform the above tasks well, it is necessary to focus on perfecting the policy of mobilizing national financial resources in order to effectively mobilize resources for development. In addition, it is necessary to move towards a synchronous and efficient state budget collection system. Moreover, it is necessary to continue to restructure revenue in a sustainable way, ensure the state budget revenue to perform the state's functions and improve the business investment environment; increase the mobilization of financial resources outside the state budget. In addition, strictly manage the state budget deficit, appropriate public debt, etc. to gradually improve fiscal space, improve the resilience of the national finance.
Vice Chairman of the National Financial Supervisory Commission Vu Nhu Thang said that in order to build a healthy and efficient financial market, Vietnam needs to focus on reforming the financial sector, establish a system of regulations so that market participants perceive it to be in their best interest on that basis to act effectively and prudently. The banking system must be managed and developed according to three criteria: both ensuring healthy competition and maintaining stability; capital market development and investor base; enhanced regulation and prudential supervision. At the same time, improve and complete the financial infrastructure to be proactive in the face of drastic changes coming from financial technology in the coming time, diversify information supply channels to develop products and services. have higher quality but cheaper price.
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