Report shows way for Vietnam to achieve upper-middle income status

Hanoi (VNA) – A report was released in Hanoi on February 23, laying out a path for the country to reach upper-middle income status by 2035.

The report “Vietnam 2035: Toward Prosperity, Creativity, Equity and Democracy” was jointly prepared by the World Bank (WB) and the Vietnamese Government.

At the launch ceremony, Minister of Planning and Investment Bui Quang Vinh said the report comprises of seven chapters that deal in-depth with three development pillars and make recommendations for turning Vietnam into an upper-middle income country by 2035.

Accordingly, the Southeast Asian nation must have a high and continuously stable growth rate in the next two decades, with an annual GDP growth of 7 percent (equal to around 8 percent annual growth), reaching 15,000 – 18,000 USD per capita by 2035.

The report focuses on three areas: improving productivity and private-sector competitiveness, promoting equity and social inclusion, and improving public sector effectiveness.

It proposes strengthening the economy and the financial sector, focusing on more effective regulation, protection of property rights and enforcement of competition policies.

It also recommends Vietnam consider new policies and investments supporting the growth of industries linked to global supply chains, along with smarter use of international trade agreements like the Trans-Pacific Partnership.

Improvements to the agriculture sector – which employs nearly half of the nation’s workforce – as well as stronger environmental protections and better planning for clean energy generation are recommended.

The report also calls upon Vietnam to continue fostering equality and social inclusion by providing greater access to opportunities for minorities, people with disabilities and women, and delivering public services that provide to an aging, urbanised and middle-class society .

The report recommends governance improvements to help boost accountability and transparency, and ensure Vietnam has strong institutions to keep pace with the country’s rapid development. Another recommendation calls for Vietnam to strengthen state accountability by ensuring checks and balances between the three branches of government and creating opportunities for citizen feedback on public service delivery.

At the ceremony, Deputy Prime Minister Vu Duc Dam highlighted achievements during the Doi moi (Reform) process launched in 1986, noting that aspirations for a bright future with an affluent economy, sustainable environment and a free, prosperous and happy life for all people requires more effort from Vietnam.

He said “Vietnam 2035” is an important report on a Vietnam in the next 20 years. The Vietnamese Government will refer to its suggestions while making policies, including the socio-economic development plan for 2016 – 2020 and the socio-economic development strategy for 2020 – 2030.

Meanwhile, World Bank Group President Jim Yong Kim considered the report as important to both Vietnam and the World Bank, adding that their cooperation in preparing the report illustrated the World Bank’s commitment to helping with Vietnam’s development.

Vietnam has a strong aspiration, which is to become a modern industrialised country towards prosperity, creativity, equality and democracy. That aspiration can be realised through institutional reforms and support policies based on the three pillars: economic prosperity with environmental sustainability, equity and social inclusion, and a capable and accountable state, he noted.-VNA