Friday, 15:58 18/01/2019
No need for Vietnam to trade off sustainability for economic growth: PM
The high growth rate would allow Vietnam to gather conditions and resources to address shortcomings of the economy, and more importantly, to grasp opportunities arising from the Fourth Industrial Revolution and globalization.
There is no need for Vietnam to trade-off between growth and sustainability, as sustainable development would ensure a Vietnam’s rapid economic growth in long-term, Prime Minister Nguyen Xuan Phuc has stated.
Vietnam’s government identifies three main pillars for its growth model, which are economy, society and environment, Phuc said at the Vietnam Economic Forum held on January 17.
Vietnam ensures no one is left behind during its development course, which is also a basic principle of the country’s socialism-oriented market, Phuc added.
The high growth rate would help Vietnam gather conditions and resources to address shortcomings of the economy, and more importantly, to catch up opportunities arising from the Fourth Industrial Revolution and globalization, in which Vietnam and ASEAN have been the highlight, Phuc continued.
In 2018, Vietnam recorded the highest GDP growth rate in 10 years of 7.08% and was one of the fastest growing economies worldwide. Along with the industry sector, the agricultural sector was Vietnam’s spotlight with the highest growth rate in 7 years at 3.76%.
The agricultural sector has laid the foundation for Vietnam’s macro-economic stability, Phuc added.
More importantly, the growth quality has been improved through higher productivity and a gradual decline in the incremental capital-output ratio (ICOR) compared to previous years.
Vietnam also witnessed a strong rise of the private sector, with over 130,000 newly established enterprises in 2018 and 34,000 enterprises resuming operation.
In 2019, the government would focus on improving its governance capabilities and facilitating new growth engines. According to Phuc, digital economy is considered an essential part of Vietnam’s objective for rapid and sustainable development.
Additionally, the government continues to give priority in stabilizing both macro and micro economy, with a view to bolstering economic resilience against external shocks, Phuc stated.
The government is committed to pushing for a stronger reform to improve the quality of legal system and state governance capabilities.
The PM requested a higher efficiency in the state sector and more support from government agencies to the development of the private sector, while there must be a strong linkage between the FDI and domestic sectors.
Phuc mentioned high quality human resources and infrastructure, especially smart infrastructure as investment priority.
Prime Minister Nguyen Xuan Phuc. Source: VGP.
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Vietnam ensures no one is left behind during its development course, which is also a basic principle of the country’s socialism-oriented market, Phuc added.
The high growth rate would help Vietnam gather conditions and resources to address shortcomings of the economy, and more importantly, to catch up opportunities arising from the Fourth Industrial Revolution and globalization, in which Vietnam and ASEAN have been the highlight, Phuc continued.
In 2018, Vietnam recorded the highest GDP growth rate in 10 years of 7.08% and was one of the fastest growing economies worldwide. Along with the industry sector, the agricultural sector was Vietnam’s spotlight with the highest growth rate in 7 years at 3.76%.
The agricultural sector has laid the foundation for Vietnam’s macro-economic stability, Phuc added.
More importantly, the growth quality has been improved through higher productivity and a gradual decline in the incremental capital-output ratio (ICOR) compared to previous years.
Vietnam also witnessed a strong rise of the private sector, with over 130,000 newly established enterprises in 2018 and 34,000 enterprises resuming operation.
In 2019, the government would focus on improving its governance capabilities and facilitating new growth engines. According to Phuc, digital economy is considered an essential part of Vietnam’s objective for rapid and sustainable development.
Additionally, the government continues to give priority in stabilizing both macro and micro economy, with a view to bolstering economic resilience against external shocks, Phuc stated.
The government is committed to pushing for a stronger reform to improve the quality of legal system and state governance capabilities.
The PM requested a higher efficiency in the state sector and more support from government agencies to the development of the private sector, while there must be a strong linkage between the FDI and domestic sectors.
Phuc mentioned high quality human resources and infrastructure, especially smart infrastructure as investment priority.
