Increasing resilience and self-strengthening of the economy

VCN - Speaking with Ms. Tran Thi Hong Minh, Director of Central Institute for Economic Management
Increasing resilience and self strengthening of the economy
Ms. Tran Thi Hong Minh, Director of Central Institute for Economic Management.

The government has set a target for economic growth in 2021 at 6.5%, do you think this is ambitious amid the continuing Covid-19 pandemic?

Facing many difficulties in 2020, Vietnam still exhibits relatively good resilience, with growth of 2.91%. This growth rate is the lowest in the past 30 years, but it shows strength when placed in the context that many countries are heavily affected by the Covid-19 pandemic in 2020.

However, the development of Covid-19 and the consequences on the economy are unpredictable in 2021. Therefore, there need to be many scenarios for economic development. By overcoming difficulties in 2020, I think that, with the scenario of preventing and combating Covid-19 effectively, the possibility of achieving economic growth from 6% to 6.5% is quite feasible.

What breakthrough solutions do you think we need to focus on to achieve the goals?

I think that promoting economic recovery must be based on radical solutions. In which the most important is to increase resilience of the economy. This is also the most urgent requirement when we are witnessing the disruption of the global economy.

Accordingly, we need to prioritize some specific groups of solutions. The first solution is to perfect institutions. In 2020, Vietnam passed a number of important laws such as the revised Enterprise Law, the 2020 Public-Private Partnership Investment Law and several other laws. In 2021, when these laws come in effect, there will be solutions to best implement these laws as well as review legal documents to avoid overlaps, creating a legal framework as a foundation for development. Because if there is no good and enforceable legal framework, the implementation will be inconsistent.

The second is to continue restructuring the economy in the direction of focusing on areas that in the past five years had many shortcomings. Thinking about industrial policy must be concretized in the direction of greater concentration, feasibility and towards the internal capacity of the economy. Focusing on developing stronger economic models to make the most of available resources in both space, time and people. Development of new economies that we have institutionalized in recent years such as night economic model and sharing economy. Similarly, digital economic development is also a key content for us to grasp the advantages of science and technology.

At the same time, strengthening institutions, promoting science and technology to take advantage of the achievements of Industry 4.0 to build an industry focusing on manufacturing creating high value and focus on core technology so that we can master the production chain and the supply chain.

We must promote more efficient exports in 2021, when we have entered into new-generation Free Trade Agreements that are key to the world economy like the EVFTA, CPTPP and RCEP. The EVFTA in the third quarter of 2020 has made a great contribution, creating a "push" for Vietnam's exports in 2020 to reach the export figure of $218 billion and a trade surplus of nearly $20 billion. However, it is necessary to pay attention to enhancing the participation of Vietnamese enterprises in export activities, creating added value to the domestic economic sector and improving the ability to meet rules of origin in FTAs.

Regarding FDI investment, we must take full advantage of opportunities from the investment shift from other countries to Vietnam. Reforming institutions, particularly the business investment environment, to catch foreign investment inflows. It is an important task.

On January 1, the Government issued Resolution 02/NQ-CP on continuing to perform major tasks and solutions to improve the business environment and improve national competitiveness in 2021. This is the commitment of the Government as well as ministries and local agencies to meet the expectations of businesses and people in order to help businesses grow and compete more effectively in domestic and foreign markets.

Besides, it is necessary to strengthen regional linkages to avoid the situation of the Vietnamese economy being "divided", not taking advantage of the local advantages. This issue has been mentioned for many years, but it is necessary to have a change in mindset, even the concepts of zoning, inter-regional integration, regional integration to handle it.

Finally, we must focus on human resource development. If we do not make adjustments, Vietnam will suffer negative consequences in the next five to ten years when the golden population period has passed. The context of Covid-19 and industrial revolution 4.0 does not change this requirement and does not allow us to "hesitate" anymore.

Thank you madam!

By Xuan Thao/Quynhlan

Related News

Challenges facing customs revenue collection in 2025

Challenges facing customs revenue collection in 2025

VCN - Revenue from import-export activities is expected to face significant challenges in 2025, necessitating coordinated and decisive measures to ensure accurate and sufficient tax collection, preventing revenue losses, and achieving assigned targets.
Support aggregate demand to promote economic growth

Support aggregate demand to promote economic growth

VCN - Financial policy, especially fiscal policy, has played an important role in promoting aggregate demand to contribute to economic development. In the current context, when the economy is entering the final year of the 2021-2025 terms with many difficulties and challenges, it is necessary to have solutions to promote production and business, supporting economic development.
Vietnam’s trade activity declines in early November despite strong year-to-date growth

Vietnam’s trade activity declines in early November despite strong year-to-date growth

VCN - Vietnam’s import-export activity showed signs of slowing in the first half of November, with total trade turnover reaching US$33.44 billion, a 9.7% drop (equivalent to US$3.58 billion) compared to the second half of October, according to preliminary data from the General Department of Vietnam Customs.
Hanoi Customs partners with businesses to boost import-export activities

Hanoi Customs partners with businesses to boost import-export activities

VCN - After a decade of fostering customs-business partnerships, Hanoi Customs Department has developed three collaborative models: Customs-Business Partnership, Customs-Import and Export Service Provider, and Customs-Business Association.

Latest News

Minister of Planning and Investment outlines six strategies to boost Việt Nam’s private sector

Minister of Planning and Investment outlines six strategies to boost Việt Nam’s private sector

Dũng’s message to Việt Nam’s business community was clear: the private sector must continue to evolve and innovate to maintain its role as a key driver of economic development in the face of new global challenges.
Positive economy growth forecast in 2025, but caution remains

Positive economy growth forecast in 2025, but caution remains

Growth is expected to moderate from 7.5 per cent year-on-year in H1 to 6.1 per cent in H2, driven by increased business activity and sustained foreign investment.
Labour market to see changes in key industries

Labour market to see changes in key industries

It is anticipated that the technology, renewable energy and logistics sectors would continue to expand rapidly in 2025.
Prime Minister warns of possible global trade war, pushes for preparation

Prime Minister warns of possible global trade war, pushes for preparation

The Government leader warns of a possibility of a trade war that may disrupt the global supply chain.

More News

Positive economic indicators recorded in early 2025: Gov

Positive economic indicators recorded in early 2025: Gov't spokesperson

Trade remained smooth, with total import-export turnover estimated at $63.15 billion, down 10.5 per cent from the previous month and 3.5 per cent year-on-year.
General Secretary urges immediate return to work after Tết

General Secretary urges immediate return to work after Tết

Party General Secretary Tô Lâm praised efforts to ensure a well-organised holiday, but stressed the need for authorities and businesses to return to work promptly. He warned against extended celebrations and called for full focus on meeting February and first-quarter deadlines.
Government holds gathering to celebrate Party’s 95th anniversary, Lunar New Year

Government holds gathering to celebrate Party’s 95th anniversary, Lunar New Year

PM Phạm Minh Chính expressed his hope for continued support from the Party Central Committee, its Politburo and Secretariat, current and former leaders, the National Asembly, and the Việt Nam Fatherland Front for the Government to fulfil its tasks, creating momentum for the whole country to make development breakthrough and enter the era of the nation’s rise.
Việt Nam’s manufacturing PMI slips into contraction in January

Việt Nam’s manufacturing PMI slips into contraction in January

Business conditions in the Vietnamese manufacturing sector weakened in the first month of 2025 with drops in both output and new orders.
Party’s 95-year journey: Capitalising on great solidarity in era of nation’s rise

Party’s 95-year journey: Capitalising on great solidarity in era of nation’s rise

The past 95 years have formed a glorious and pride-worthy period for the Vietnamese people as they have gradually eliminated poverty and backwardness, steadily moving towards a wealthier and happier future.
Great opportunities for cooperation with Việt Nam in 2025: Malaysian Ambassador

Great opportunities for cooperation with Việt Nam in 2025: Malaysian Ambassador

Malaysian Ambassador to Việt Nam Dato’ Tan Yang Thai says he believes that 2025 will bring even greater opportunities for cooperation between the two countries in his recent interview with the Vietnam News Agency.
Structural reform, innovation to drive Việt Nam

Structural reform, innovation to drive Việt Nam's sustainable development: EuroCham chair

Bruno Jaspaert, chair of EuroCham Vietnam told the Vietnam News Agency in a recent interview that Việt Nam continued to stand out as a highly attractive destination for foreign investors, including those from Europe.
At threshold of a new era: Vietnam accelerates toward breakthroughs

At threshold of a new era: Vietnam accelerates toward breakthroughs

Vietnam is poised to enter a new era of the nation's rise, acceleration and breakthroughs, marked by a major milestone: the 14th National Congress of the Communist Party of Vietnam (CPV).
Vietnamese, Russian leaders exchange congratulations on diplomatic ties anniversary

Vietnamese, Russian leaders exchange congratulations on diplomatic ties anniversary

Building on the strong ties nurtured by generations of leaders and people over the past 75 years, the traditional friendship and Comprehensive Strategic Partnership between Việt Nam and Russia will continue to yield positive results, living up to the two countries’ glorious histories.
Read More

Your care

Latest Most read
Minister of Planning and Investment outlines six strategies to boost Việt Nam’s private sector

Minister of Planning and Investment outlines six strategies to boost Việt Nam’s private sector

Dũng’s message to Việt Nam’s business community was clear: the private sector must continue to evolve and innovate to maintain its role as a key driver of economic development in the face of new global challenges.
Positive economy growth forecast in 2025, but caution remains

Positive economy growth forecast in 2025, but caution remains

Growth is expected to moderate from 7.5 per cent year-on-year in H1 to 6.1 per cent in H2, driven by increased business activity and sustained foreign investment.
Labour market to see changes in key industries

Labour market to see changes in key industries

It is anticipated that the technology, renewable energy and logistics sectors would continue to expand rapidly in 2025.
Prime Minister warns of possible global trade war, pushes for preparation

Prime Minister warns of possible global trade war, pushes for preparation

The Government leader warns of a possibility of a trade war that may disrupt the global supply chain.
Positive economic indicators recorded in early 2025: Gov

Positive economic indicators recorded in early 2025: Gov't spokesperson

Trade remained smooth, with total import-export turnover estimated at $63.15 billion, down 10.5 per cent from the previous month and 3.5 per cent year-on-year.
Mobile Version