Prime Minister: Taking enterprises as the center and driving force for development

Prime Minister Nguyen Xuan Phuc attended and spoke at the Vietnam Reform and Development Forum 2019. (Photo: Thong Nhat/VNA)

On the afternoon of September 19, Prime Minister Nguyen Xuan Phuc attended and delivered a speech before a large number of policymakers, development partners, and domestic and foreign experts at the plenary session of the Vietnam Reform and Development Forum 2019 (VRDF 2019).

This year's forum, themed "Vietnam: Aspiration for Prosperity - Priorities and Actions", is organized by the Ministry of Planning and Investment in coordination with the World Bank (WB) and development partners.

VRDF 2019 takes place in the context of Vietnam preparing to conclude the third 10-year Socio-Economic Development Strategy for the 2011-2020 period to enter a new decade and era, with many new development opportunities along with many great challenges.

VRDF 2019 was organized earlier than VRDF 2018 with the aim of collecting comments from prestigious domestic and international experts for research on building the Socio-Economic Development Strategy 2021 - 2020, directions and tasks of the 5-year Socio-Economic Development Plan 2021 - 2025, expected to be submitted to the 11th Conference of the Party Central Committee (12th tenure) next October.

The theme and content of VRDF 2019 were chosen to be more inclusive, including issues of reforming market economic institutions, innovation to overcome the middle-income trap in the era of the 4.0 industrial revolution, and priorities and actions for a prosperous Vietnam.

According to Ms. Pinelopi Koujianou Goldberg, Chief Economist, World Bank Group, in the process of approaching the global value chain to increase productivity, Vietnam needs to prioritize increasing the proportion of domestic value.

Because to move to advanced industrial production and services in the global value chain, the level of trade openness of the economy and the skills of workers are decisive factors. Besides, resisting the temptation of protectionist policies, deep participation in trade agreements will increase the growth of the global value chain.

Referring to Vietnam's transition process to a new level of development, Dr. Jan Rielaender, Head of the Multidimensional Country Review (MDCR) of the Organization for Economic Cooperation and Development (OECD), said that different regions in Vietnam have large differences in development speed and Vietnam needs specific solutions to promote growth and improve productivity to overcome this situation.

Providing orientations for Vietnam to become a prosperous country, Mr. Bui Tat Thang - former Director of the Institute of Development Strategy said that it is necessary to improve the quality of socialist-oriented market economic institutions, better resolve the relationship between the State, the market and society; continue to promote substantial economic restructuring to quickly shape a new economic growth model; strongly develop science - technology and innovation as the main driving force of the new economic growth model.

Along with that is the strong development of infrastructure network and urban system - this is one of the three contents of strategic breakthrough in the period 2011-2020. At the same time, focus on human and cultural - social development, good environmental protection, efficient use of resources and response to climate change.

Prime Minister Nguyen Xuan Phuc with delegates attending the Forum. (Photo: Thong Nhat/VNA)

Speaking at the plenary session of the Forum, Prime Minister Nguyen Xuan Phuc emphasized the aspiration to strongly develop Vietnam's economy after decades of efforts to overcome the consequences of war.

The Prime Minister pointed out that in 30 years of renovation, Vietnam's economy has achieved high growth and that is the basis for the poverty rate to decrease from a very high level of over 53% in 1992 (at 1.9 USD/day, according to the 2011 PPP exchange rate), to 10 times lower to only 5.23% in 2018 according to the multidimensional poverty standard.

At the same time, the middle class has also increased, accounting for more than 15% of the population and is growing very rapidly. Children born in the first decade of renovation have now grown up, their dreams have now come true, many of them have become teachers, doctors, engineers, lawyers, singers, athletes... but there may still be many unfinished dreams with many worries.

Children today are growing up in better living conditions than before and have dreams that continue the dreams of their parents and predecessors, with aspirations to fly higher and reach further.

Affirming, “we have the honor and responsibility to nurture and support those dreams to become reality”, the Prime Minister mentioned the statement of Mr. Woodrow Wilson - the 28th President of the United States: “We become great because of dreams”. “A Vietnam that has constantly dreamed and acted upon those dreams throughout its history of reform and development”, the Prime Minister said.

Frankly mentioning the limitations and weaknesses, the Prime Minister acknowledged and highly appreciated the comments and assessments of international experts on the existing shortcomings, limitations and potential risks, and the weak ability to withstand and adapt to external impacts of Vietnam. The capacity to access the digital economy is still limited.

Recently, GDP growth has tended to slow down, the risk of falling into the middle-income trap and falling behind is still high. In 2018, Vietnam's population ranked 3rd in ASEAN, economic scale ranked 6th. Participation in the global value chain is still low.

The Prime Minister hopes that in the process of overcoming these weaknesses and limitations, Vietnam hopes to have the accompaniment and active support of the international community.

Informing the speakers that Vietnam is focusing on building the 2021 - 2030 Development Strategy in the context of many unpredictable developments in the world, especially trade wars, protectionism, climate change, etc., the head of the Government affirmed that this context requires Vietnam to have a strong will and confidence to continue implementing three strategic breakthroughs in institutional improvement, infrastructure development, and human resource development. It is necessary to maintain a peaceful environment and maintain socio-political stability for rapid and sustainable development.

Along with that is to strongly innovate economic institutions, transform to a modern, integrated Vietnamese market economy, serve people and businesses, towards a digital economy and digital society. Promote internal strength, liberate potential resources on the basis of strongly promoting new science and technology, promoting a dynamic, creative private sector, taking businesses as the center and driving force for development.

The Prime Minister also affirmed that Vietnam will continue to invest more strongly in national education, build an independent, self-reliant, resilient and adaptable economy, and achieve the SDG 2030 sustainable development goal of prosperity for all, leaving no one behind.

Along with that, Vietnam also continues to focus on expanding foreign relations, deeply integrating internationally, effectively implementing signed FTA agreements, and continuing to participate in global value chains.

In recent times, Vietnam has made efforts to cooperate with FDI, participating in large-scale FTA agreements, thereby directing the flow of global value chains and supply chains with transnational corporations through Vietnam. Vietnam will have to rise up, promote dynamic and creative human resources, promote the application of new science and technology to improve qualifications so that more and more Vietnamese enterprises are capable of participating in the global value chain and receiving technology transfer, strongly moving up the "ladder" with higher added value.

This is also a way to improve the capacity and competitiveness of each product, each enterprise and the entire economy, contributing to helping Vietnam enhance its national strength, confidently develop quickly and sustainably, and avoid falling into the middle-income trap, the Prime Minister said.

Appreciating the opinions and policy ideas to perfect the institutions of experts and speakers at this Forum, the Prime Minister said that these are very useful contributions for Vietnam in improving the effectiveness of policy making, which need to be seriously studied for specific implementation.

The Prime Minister requested the Minister of Planning and Investment and leaders of ministries, branches and localities to listen to the sharing of international experience and knowledge, comments and suggestions from international and domestic experts, to find suitable approaches for Vietnam, contributing directly to the completion of the draft Development Strategy 2021 - 2030, the 5-year Socio-Economic Development Plan 2021 - 2025 to realize the aspiration of building a strong Vietnam, by 2030 becoming an industrialized country in the leading group of upper-middle-income countries and by 2045 becoming a modern, developed industrialized country, following a socialist orientation./.