Exploiting the potential of new drivers towards growth above 8%

Vietnam maintains growth momentum in the context of global economic difficulties. Photo: Tuyet Lan

According to domestic and foreign economic experts, Vietnam is going against the world trend when it maintains strong growth momentum in the context of the global economy facing many difficulties.

According to Mr. Dang Duc Anh - Deputy Director of the Vietnam Institute for Policy and Strategy Studies (IPS), there are currently a number of key driving forces to achieve the growth target of 10% or more in the next 5 years, a level that our country has not achieved in 40 years of innovation.

Mr. Dang Duc Anh said that the first driving force comes from the industrial and construction sectors. In particular, the processing and manufacturing industry can play a very important role in growth if Vietnam can create a strong change in technology and upgrade products in the value chain. In this group of industries, supporting industry is the sector with the largest room.

“For some other industries, if we can take advantage of the achievements of the 4.0 revolution, apply automation, digital transformation, and upgrade spare parts and materials, we can also create a transformation. An example is the renewable energy industry. This is a huge “gold mine” for Vietnam if institutional bottlenecks can be resolved. Construction is also a field with the potential for breakthrough growth with key projects of the State on expanding the highway system, seaports, and construction and airport system,” Mr. Dang Duc Anh emphasized.

Further analysis, Mr. Dang Duc Anh said that the second driving force is services, which have great growth potential, especially in the tourism, e-commerce, transportation and warehousing and financial services sectors. Agriculture is also considered a pillar of the economy. However, there are still many opportunities to develop this sector, including in the manufacturing and export sectors.

“The third driving force is to take advantage of the development space from growth poles. In many localities, development potential still exists, especially in areas with advantages in infrastructure, human resources and resources. This factor becomes more prominent when the Party and Government are undergoing an institutional revolution, streamlining the apparatus, and reorganizing localities to expand development space,” Mr. Dang Duc Anh emphasized.

Although there is a driving force for double-digit growth, to ensure this process takes place in the long term, Mr. Dang Duc Anh recommended that the State needs to ensure that the growth process goes hand in hand with the transformation of the development model, avoiding relying too much on capital growth while other factors such as productivity and innovation capacity are forgotten.

"Vietnam also needs to be cautious in loosening monetary and fiscal policies to ensure that credit flows do not enter high-risk areas, creating economic bubbles," Dang Duc Anh recommended.

Source: https://baoquangninh.vn/khai-thac-tiem-nang-cac-dong-luc-moi-huong-toi-tang-truong-tren-8-3366189.html