To achieve growth goals, businesses must "suffer" restructuring

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	Worst is over for garment, footwear exports, growth next year
	Strengthening growth momentum for 2024
	Worst is over for garment, footwear exports, growth next year

Prof.Dr. Hoang Van Cuong

The National Assembly has passed a Resolution on the 2024 socio-economic development plan in which GDP reaches 6-6.5%. In your opinion, what is the basis for our country to be able to achieve these goals?

The world and domestic economic situation is still forecast to be difficult in 2024 with many factors hindering development and recovery. Vietnam's economy depends heavily on the world market, so implementing growth goals will certainly face many challenges. However, there are still many foundations for Vietnam to be able to achieve the goals approved by the National Assembly.

Accordingly, we all see that the implementation of macroeconomic policies is quite effective in 2023, when Vietnam has gone upstream to loosen monetary policy, reducing interest rates, thereby helping to control inflation well. At the same time, we have also controlled public debt at a low level, ensured budget revenue and expenditure balance, and promoted public investment stimulation. With the difficulties of businesses, the Government has also had a series of solutions to solve hot issues such as land, corporate bonds... to create business confidence. Therefore, the economy is currently tending to recover, the next quarter is higher than the previous quarter, especially the fourth quarter of 2023 shows some positive signals from the market, exports are increasing.

On the other hand, our country's economy is facing new trends in economic development and economic transition. Not only is the United States strengthening cooperation, investment, and upgrading relationships, but many other countries also conduct cooperation and promote trade relations. Not only relying on the external market, our country is also opening up the domestic market, exporting services, expanding policy mechanisms for tourism, so we expect that the domestic market will develop even more strongly in 2024.

From the above premise, what does Vietnam need more drastic solutions to seize opportunities, Sir?

Clearly, with existing internal and external influences and premises, along with promoting institutional reform, achieving growth goals for 2024 is not too difficult. But we must have a solution to bring it all together and must make great efforts to seize the opportunity.

First of all, we must be more drastic in removing institutional "bottlenecks", thereby helping to free up resources and capture new investment opportunities. We must do it faster and stronger, because in the context of a wave of investment shifts, if we keep waiting, we may lose the opportunity. Furthermore, good institutions can free up public investment resources.

In the Government's reports and explanations on socio-economic management solutions in the coming time, the proposed solutions are quite comprehensive to solve the institution issues. The determination is great, but which level it can be moved is still a question, because there are policies within the Government's reach that can be changed, such as decrees, circulars or increased decentralization, but there are policies that belong to the legal system and institutions.

Regarding the organization of the state apparatus, there are currently issues that are not regulated by law, there are overlapping, contradictory, and inappropriate legal documents, but it is impossible to do otherwise and still have to comply, making officers performing public duties becomes mechanical and stiff. This is the most problematic issue, so we need to look directly at the actual requirements to carry out reforms and support the economy.

What is expected is that after 2 years of preparation, the Government has enough resources and budget to implement salary reform according to Resolution 27-NQ/TW of the Central Executive Committee. The salary reform policy is expected to have an impact on other areas, aiming to pay salaries according to job position and commensurate with the level of contribution. Therefore, this will be one of the driving forces to promote and encourage an increase of labour productivity and creativity to create higher added value.

Regarding the business sector, what issues need attention to contribute to economic goals, Sir?

The business sector needs to continue to strengthen and promote the implementation of support policies, such as continuing to implement policies on value-added tax reduction in 2024, or policies on extending taxes, fees... in a reverse account cycle so that the economy continues to recover and consumption increases. Along with that are policies to restructure industry and investment to create overall conditions for businesses to seize opportunities.

Regarding trade, businesses need to make more efforts, with support from authorities, quickly grasp opportunities from new markets to expand consumption markets. Especially we need to pay attention to the issue of business restructuring, because during times of crisis like the past, reallocation of supply chains is creating new opportunities and challenges for businesses. So, to take advantage of these opportunities, businesses must restructure, even accept "one-time pain" to cut out outdated production methods that no longer follow the trend, innovate new production methods not relying on low-value processing as before.

Thank Sir!