More efforts needed to refine Vietnam"s economic development

Illustrative image (Photo: baodautu.vn)

The implementation of the digital economy and the circular economy will create opportunities for rapid and sustainable development, help fulfill socio-economic development goals, and effectively respond to complications due to climate change, according to experts.

On June 7, 2022, the Prime Minister issued a decision approving a project on the circular economic development in Vietnam, which affirmed that proactively developing the circular economy is inevitable, in line with global trends as well as requirements to create breakthroughs in economic recovery and the implementation of the Sustainable Development Goals (SDGs).

However, currently, Vietnam does not have a specific legal framework to develop its circular economy; or have developed and issued a set of indicators to identify, evaluate and classify the development level of the circular economy.

In addition, infrastructure for digital transformation is still limited, while the implementation of circular economy requires the innovation and application of modern technology.

Human resources are also a big challenge, as the development of these economies requires a team of experts who are good at performing all stages of the production process, especially the reuse and recycling of waste in an efficient and safe manner.

Currently, the training level of employed workers is still low, with 72.5% having no professional and technical qualifications, and 12.5% having university or higher degrees. This means that the workforce has not yet met the needs when implementing digital economy and circular economy.

Furthermore, fierce competition from foreign digital technology enterprises with big potential is a huge challenge for domestic companies whose capacity remains limited.

Illustrative image (Photo: VNA)

According to experts, in order to promote the digital and circular economies in the context of having to deal with the above-mentioned challenges, the Government should direct ministries, sectors and localities to carry out solutions to innovate the management and leadership, as well as management capacity.

Shifting to a digital platform and circular economy means transforming business models as well as the qualifications and skills of human resources.

Economist Nguyen Bich Lam, former head of the General Statistics Office, said that developing digital and circular economies is not a technological revolution but an institutional one.

It is necessary to create a legal environment that can be flexibly adjusted to encourage and absorb new technologies, products, services, and models, stated Lam.

He stressed the importance of perfecting institutions and the legal corridor to create a legal framework for economic development.

The Government also needs to amend and supplement the Law on Environmental Protection; specifies specific responsibilities of manufacturers and distributors for the collection, sorting and recycling of wastes, he added.