PM stresses institutional change for sustainable growth

Created 13 January 2018
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HANOI – What is important for Vietnam now is to pursue institutional reform to achieve fast and sustainable economic growth, Prime Minister Nguyen Xuan Phuc told a policy dialogue in Hanoi on January 11.

Kết quả hình ảnh cho Thủ tướng nhấn mạnh sự thay đổi về thể chế đối với tăng trưởng bền vững

Addressing the dialogue, part of the Vietnam Economic Forum 2018, the Government leader said the two targets seem to be conflicting, but South Korea and Japan succeeded. Vietnam needs to work hard to achieve them, he added.

According to Phuc, measures that are recommended to Vietnam to harmonize the two goals are focusing on green energy and sustainable development, increasing labor productivity amid industrialization, and improving the investment-business environment via risk management reforms.

Answering a question from Dr. Vu Thanh Tu Anh from Fulbright Vietnam University as the emcee at the dialogue on what measures Vietnam would use to cushion the economy from external shocks in the future, PM Phuc said institutional reform would help.

The Prime Minister referred to the classical economic book “Why Nations Fail” authored by Daron Acemoglu and James A. Robinson, saying “We have to continue heeding their warnings… the institutional corridor must be aligned with the market economy.”

It is important that the Vietnamese change mindset and methods to realize the aspiration of economic prosperity, he said.

2017 was a successful year of Vietnam’s economy with growth of 6.81% and a place in the group of fast-growing countries. However, Vietnam’s economy is still facing many challenges in the medium and long terms, including how to gain rapid, sustainable growth and escape the middle-income trap, according to the PM.

Ministries, agencies and localities have been told to target growth higher than assigned by the National Assembly (NA), boost labor productivity, enhance competitiveness in every field, locality and business, and improve people’s lives.

Dung said that after 30 years of economic reform, Vietnam has become an active market economy and become an attractive destination for investors. Nonetheless, Vietnam needs to be persistent with transforming growth models based on productivity and innovation, reducing dependence on natural resources and cheap labor.

 

Source: ThesaigonTimes

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