Vietnam striving to become new "economic tiger”

Prime Minister Nguyen Xuan Phuc speaking at Vietnam Economic Forum

At the high-level policy dialogue with the theme of “Fast and sustainable economic growth: existing challenges and new motivation” under Vietnam Economic Forum, Prime Minister Nguyen Xuan Phuc confirmed his hopes that Vietnamese people would change their mindset and habits to create a prosperous Vietnam.

The prime minister said that 2017 was a successful year for the Vietnamese economy, with a growth of 6.81 per cent. Vietnam is one of the highest-growing countries in Asia and over the world. The economic reform has been strengthened and the business climate has been improved. These have consolidated the faith of investors and enterprises, creating new momentum for the economy.

“We should affirm that the Vietnamese economy is facing many challenges in the medium and long term. It is necessary to find a way to promote fast and sustainable development and overcome the middle-income trap in the coming time,” PM Phuc emphasised.

In 2018, the government asks ministries, branches, and localities to strive to reach father than the growth targets set forth by the National Assembly. Thereby, GDP growth should be over 6.7 per cent, with the quality of growth and productivity improved significantly, accompanied by rising environmental indicators.

Vietnam has produced many socioeconomic development achievements during 30 years of reform. The prime minister noted: “We should not be subjective and satisfied with these achievements. In the coming time, Vietnam should follow a new growth model based on productivity and innovation, and reduce dependency on old advantages like natural resources and low-cost labour.”

He added, “Growth and development is a marathon, not a sprint. We could be delighted with the 2017 achievements, but we should consider them as a basis for economic restructuring and shifting the growth model. This way we will create a solid foundation for the economy to grow in the long term.”

The prime minister talking with the business community on the sidelines of the forum

The prime minister said that besides economic achievements, the poverty rate has reduced, environmental protection and afforestation received more attention, and forest coverage has increased.

The prime minister was especially proud of Vietnam’s global competitiveness index (GCI) that jumped to the 55^th

place, five places up against the previous year, according to the latest list announced by World Economic Forum (WEF). Vietnam climbed 14 places to 68^th

in the World Bank’s latest Ease of Doing Business 2018 ranking. The reliability index of the banking system has shifted from “stable” to “active.”

Additionally, the leader of the government expressed concerns over the issues of climate change and Industry 4.0 and emphasised the need to find better ways to implement the nation’s sustainable development strategy.

In order to improve the resilience of the economy, the prime minister focused on mechanisms which boost innovation in the country.

“We need to improve productivity, apply science-technology, and promote e-commerce. The economy needs to be restructured on every level, branch, and business, in order to improve the competitiveness of the country. This should go along with reducing costs, as well as promoting anti-corruption and preventing group interests from taking over. Thus, we need an innovative national education in line with the development,” PM Phuc state