Creativity key to growth promotion

Experiences of many countries show that "creativity" is considered as a key factor behind growth promotion, said UNDP Senior Adviser in Vietnam Rajah Rasiah at the Vietnam Development Forum (VDF) 2017 held in Hanoi on December 13
creativity key to growth promotion

Minister of Planning and Investment Nguyen Chi Dung and World Bank (WB) Country in Vietnam Ousmane Dione co-chaired the forum on the theme “Increasing Productivity - Leverage for Sustainable Development” in the presence of Prime Minister Nguyen Xuan Phuc.

Those in attendance included development partners, investors, and representatives from research institutes, ministries, embassies, foreign and domestic organisations, and the business community along with provincial and municipal leaders.

VDF 2017 focused on specific solutions to spur productivity, creating long-term solutions for Vietnam to overcome the middle-income trap and catch up to developing economies, the trend of global productivity growth and challenges for Vietnam.

The forum’s topic this year is considered very practical for Vietnam’s current affairs when its economic growth has experienced a continued reduction. According to a report released at the forum, Vietnam’s average economic growth in the period 1990-2000 stood at 7.3% and the figure fell to 6.7% for 2001-2010 and below 6% for 2011-2016.

Experts said that over the past years, Vietnam’s growth was primarily contingent on capital and natural resources and labour intensive industries. Therefore, slower labor productivity is the cause of slow economic growth. Meanwhile, the world is entering the era of the 4.0 industrial revolution and Vietnam is making every effort to maintain substantial growth.

In 2017, labor productivity has contributed up to 89% to GDP growth, much higher than the 66.3% level recorded in the 1990-2000 period. Thus, productivity growth is the key to ensuring Vietnam’s steady growth in future.

creativity key to growth promotion

In his remarks, Prime Minister Nguyen Xuan Phuc called for greater efforts to increase workers’ productivity, the efficiency of capital use, and total factor productivity.

“Increasing total factor productivity is an important task of the government, which strengthens investment in science, advanced technologies, development and research, infrastructure, smart connection, legal reform, governance, business environment, and reducing transaction costs for the economy.

We should uphold the people and businesses’ spirit of innovation and creativity and seize opportunities created by the 4th industrial revolution to develop the digital economy and smart industry and cities towards higher productivity and efficiency. On the basis of total factor productivity, Vietnam will have opportunities to overcome the middle-income trap.”

He also described increasing productivity as a foundation for improving national competitiveness.

In order to avoid productivity decline, UNDP Senior Advisor in Vietnam Rajah Rasiah suggested that Vietnam should learn experience from other regional countries. Experience from the Republic of Korea (RoK) Taiwan (China), and Singapore show that "creativity" is a key factor for growth promotion and these economies focus their investments on infrastructure, capital accumulation, and human resource development, export orientations.

Therefore, what Vietnam can learn is to focus on human development by strengthening science and technology education, and vocational training, and attracting talents and experience from overseas Vietnamese overseas and from abroad. In addition, it is essential to increase funding for innovation, including preferential interest rates for innovative activities, and sponsor or work out incentive financial policies for research and development, he said.

Like the Vietnam Business Forum 2017 on December 12, speakers once again underlined effective linkages between domestic and FDI enterprises by becoming involved in production and business activities towards moving up in global value chains and ultimately improving its productivity.

World Bank Country Director in Vietnam Ousmane Dione said improved productivity is significant to turning Vietnam into a middle-income country till 2035.

He hailed Vietnam’s growth over the past five years, saying there remains room for the country to improve economic productivity, upgrade transport and logistics and closer collaboration between domestic and foreign firms is vital to elevating Vietnam’s status in the global value chain.

Vietnam has witnessed another year of robust growth and macroeconomic

stability, marked low single digit inflation, a relatively stable exchange rate, and a strengthening

external position, he said

He also congratulated the government for achieving an improvement of 14 ranks in the WBG Doing Business 2018 ranking. Reform implementation must keep this positive momentum, as it is critical for continued macroeconomic stability and higher productivity growth, he noted.

The Vietnamese government needs to continue improving its business climate, simplify administrative procedures and properly allocate land and capital resources, he said while stressing the importance of skill training, innovation and effective use of preferential loans.

In addition, ministries, sectors, localities and especially enterprises themselves need to raise their awareness about higher investment in research and application of science and technology so as to increase product value and productivity.

Source: VNA

Related News

How does the Fed

How does the Fed's interest rate cut affect Vietnam?

VCN - In the latest meeting of the Federal Open Market Committee (FOMC), the Fed decided to cut interest rates by 50 basis points to a range of 4.75%-5%. Analysts have given different perspectives on this decision.
Important step to soon upgrade stock market

Important step to soon upgrade stock market

VCN - According to experts, the Ministry of Finance's issuance of Circular No. 68/2024/TT-BTC dated September 18, 2024 is an important step in the process towards the goal of improving the quality of the Vietnam’s stock market.
Vietnam still primarily relies on processing and manufacturing with limited automation integration

Vietnam still primarily relies on processing and manufacturing with limited automation integration

VCN - Vietnam needs to cultivate domestic enterprises that are large-scale, possess international competitiveness, boast established brands, and can serve as cornerstones in leading the industrialization and modernization process.
Vietnam to achieve credit rating as set target

Vietnam to achieve credit rating as set target

VCN - With the current credit rating scale, Vietnam is getting closer to the target of raising the investment rating grade by 2030 set out in the National Credit Rating Improvement Project by 2030.

Latest News

ASEAN leaders engage with parliament, business, youth representatives

ASEAN leaders engage with parliament, business, youth representatives

Prime Minister Pham Minh Chinh joined leaders from other ASEAN countries in dialogue sessions with representatives from the ASEAN Inter-Parliamentary Assembly (AIPA), the ASEAN Business Advisory Council (ASEAN-BAC), and the ASEAN Youth Organisation, as part of the 44th and 45th ASEAN Summits and related meetings in Vientiane on October 9.
Bright prospects for exports to set new record in 2024: Experts

Bright prospects for exports to set new record in 2024: Experts

With positive results recorded in the first nine months of 2024 and efforts of businesses, experts are optimistic about the country’s bright export prospects in the rest of the year towards a historical record of 400 billion USD.
Vietnamese, Lao, Cambodian PMs seek measures to promote ties

Vietnamese, Lao, Cambodian PMs seek measures to promote ties

Prime Minister Pham Minh Chinh had a working breakfast with his Lao and Cambodian counterparts, Sonexay Siphandone and Samdech Thipadei Hun Manet, respectively, in Vientiane on October 9 to review, evaluate, and promote cooperation among the three countries.
PM arrives in Laos for 44th, 45th ASEAN Summits

PM arrives in Laos for 44th, 45th ASEAN Summits

Prime Minister Pham Minh Chinh and a high-ranking delegation of Vietnam arrived at Wattay International Airport in Vientiane on October 8, beginning his trip to Laos to attend the 44th and 45th ASEAN Summits and Related Summits.

More News

Timely decisions will bring about many innovations

Timely decisions will bring about many innovations

VCN - Speaking to reporters of Customs Magazine, economic expert, Associate Professor, Dr. Dinh Trong Thinh (photo) emphasized that the amendment and supplementation of 5 laws: Law on Public Investment, Law on Planning, Law on Investment, Law on Public-Private Partnership Investment and Law on Bidding will be an important policy lever to promote economic growth, help stabilize the macro economy, especially in the current period when the world economy is experiencing many fluctuations.
Vietnam, Tunisia promote trade cooperation

Vietnam, Tunisia promote trade cooperation

The Vietnam Trade Office in Algeria and Tunisia last week coordinated with the Tunisian Union of Industry, Trade and Handicrafts (UTICA) to organise a conference to connect Vietnamese businesses and their peers in in Tunis.
Vietnam welcomes over 12.7 million foreign tourists in nine months

Vietnam welcomes over 12.7 million foreign tourists in nine months

Vietnam welcome nearly 1.3 million international visitors in September, according to the latest report from the General Statistics Office (GSO).
Prime Minister presides over Cabinet’s regular meeting

Prime Minister presides over Cabinet’s regular meeting

Prime Minister Pham Minh Chinh urged the acceleration of public investment disbursement while chairing a regular Cabinet meeting, which was connected online with 63 provinces and centrally-run cities on October 7.
Risks for the economy when cash flow has not yet been put in to production and business

Risks for the economy when cash flow has not yet been put in to production and business

VCN - Investment channels in Vietnam have a lot of potential, but financial and banking expert Dr. Nguyen Tri Hieu, Director of the Institute for Research and Development of Global Financial and Real Estate Markets, said that cash flow into production and business is still modest, leading to risks for the economy.
Vietnam suggests ways to promote multilateralism at Francophonie Summit

Vietnam suggests ways to promote multilateralism at Francophonie Summit

Party General Secretary and State President To Lam attended official sessions and delivered an important speech at the 19th Francophonie Summit in Paris on October 5.
Top leader meets with Vietnamese community in France

Top leader meets with Vietnamese community in France

Party General Secretary and State President To Lam had a meeting with the Vietnamese community in France on October 5 (local time), as part of the leader's trip to attend the 19th Francophonie Summit and pay an official visit to France.
Standardising fruit quality can open up new markets for Vietnam: Insiders

Standardising fruit quality can open up new markets for Vietnam: Insiders

There is plenty of room for Vietnamese fruit and vegetables to enter more stringent markets such as the US, Australia, and the EU by focusing on high-quality fruit, accurate origin certificates, and food safety standards, according to insiders.
Support policies needed for businesses to recover after the super typhoon No. 3

Support policies needed for businesses to recover after the super typhoon No. 3

VCN - Super Typhoon No. 3 has left severe consequences. The livelihoods of the people and the operations of businesses have been significantly affected, making timely and appropriate support policies from regulatory agencies essential.
Read More

Your care

Latest Most read
ASEAN leaders engage with parliament, business, youth representatives

ASEAN leaders engage with parliament, business, youth representatives

Prime Minister Pham Minh Chinh joined leaders from other ASEAN countries in dialogue sessions with representatives from the ASEAN Inter-Parliamentary Assembly (AIPA), the ASEAN Business Advisory Council (ASEAN-BAC), and the ASEAN Youth Organisation, as part of the 44th and 45th ASEAN Summits and related meetings in Vientiane on October 9.
Bright prospects for exports to set new record in 2024: Experts

Bright prospects for exports to set new record in 2024: Experts

With positive results recorded in the first nine months of 2024 and efforts of businesses, experts are optimistic about the country’s bright export prospects in the rest of the year towards a historical record of 400 billion USD.
Vietnamese, Lao, Cambodian PMs seek measures to promote ties

Vietnamese, Lao, Cambodian PMs seek measures to promote ties

Prime Minister Pham Minh Chinh had a working breakfast with his Lao and Cambodian counterparts, Sonexay Siphandone and Samdech Thipadei Hun Manet, respectively, in Vientiane on October 9 to review, evaluate, and promote cooperation among the three countries.
PM arrives in Laos for 44th, 45th ASEAN Summits

PM arrives in Laos for 44th, 45th ASEAN Summits

Prime Minister Pham Minh Chinh and a high-ranking delegation of Vietnam arrived at Wattay International Airport in Vientiane on October 8, beginning his trip to Laos to attend the 44th and 45th ASEAN Summits and Related Summits.
Timely decisions will bring about many innovations

Timely decisions will bring about many innovations

VCN - Speaking to reporters of Customs Magazine, economic expert, Associate Professor, Dr. Dinh Trong Thinh (photo) emphasized that the amendment and supplementation of 5 laws: Law on Public Investment, Law on Planning, Law on Investment, Law on Public-Pr
Mobile Version