Restructuring economy to catch up with world’s pace

Businesses speed up production to secure new orders and restore production. (Photo: VNA)

Hanoi (VNA) - Creating a clear change in the growth model towards increasing productivity, quality, competitiveness, efficiency of resource use, autonomy and adaptability of the economy, step by step heading to an economy based on science and technology...

This is one of the contents of the Government's report on economic restructuring scheme for the 2021-2025 period presented by Minister of Planning and Investment Nguyen Chi Dung during the ongoing second session of the 15th NA in Hanoi on October 29.

Increasing the economy’s adaptability

Minister Dung said the scheme offers six target groups, including restructuring credit organisations and public administrative units, improving the allocation and use of resources, as well as businesses to raise their competitiveness, internal capacity and self-resilience of the economy; strengthening regional connectivity, upgrading value chains of sectors based on technological advances and digital transformation, among others.

It also defines 130 specific tasks to be assigned to ministries, agencies and localities for the effort, he said.

Accordingly, the plan sets out the task of restructuring the economic space, developing the urban economy, strengthening regional linkages, urban-rural linkages, and promoting the role of key economic regions, the major cities in the promotion of growth model innovation; upgrading value chains of industries based on the application of scientific and technological advances, innovation, digital transformation, development of green economy, inclusive economy; and increasing adaptation to climate change…

According to Minister Nguyen Chi Dung, in the coming time, the international and domestic context will have opportunities and challenges. In particular, the development of the COVID-19 epidemic becoming more complicated, can be prolonged and has uncertain factors directly affecting economic centers and big cities, causing production stagnation and disruption of supply chains, affecting the implementation of the country's socio-economic development goals and tasks.

"In this context, a plan to restructure the economy needs to be implemented in order to accelerate the recovery process, take advantage of opportunities and create a breakthrough momentum for the coming period," Minister Nguyen Chi Dung emphasised.

The plan also aims to develop a full range of markets; promote the mobilization, allocation and use of social resources; forming a rational economic space structure; developing urban economy; upgrading value chains of industries; improving the internal resources of the Vietnamese enterprises and economy.

Catching up with the world economy

Chairman of the National Assembly’s Economic Committee Vu Hong Thanh said the committee basically agreed with the report and spoke highly of the Government’s efforts in directing the 2016-2020 economic restructuring plan.

He asked the Government to assess the COVID-19’s impacts on the possibility of achieving set targets in the restructuring of credit organisations, deal with slow public investment disbursement, pay attention to developing venture capital, derivatives and consumption credit markets, attract investment in agriculture and new-model cooperatives.

The committee suggested the Government add several targets in the scheme, including developing urban economy into the national pillar, making the best use of advantages from new-generation free trade agreements to promote domestic economic reform, ensuring green growth in combination with environment protection and effective response to climate change.

The Government should research, supplement and clarify the content and constitutive elements of the digital economy, serving as a basis for determining the goal of "The digital economy accounts for 20% of GDP, the proportion of the digital economy in each industry, sectors reach at least 10%”. This is a new content, so it needs to be concretized for each industry and field to ensure feasibility in implementation.

Basically, the committee agreed with measures set in the scheme and proposed the legislature offer opinions on the necessity of issuing the scheme, the list of programmes and projects, and other issues of deputies’ concern.

Chairman of the National Assembly’s Economic Committee Vu Hong Thanh said that economic restructuring must be placed in the context of complicated developments of the pandemic. COVID-19 can be prolonged and there are uncertain factors. There should be suitable solutions closer to the actual situation to catch up with the world economy and restructure the economy with breakthroughs in perfecting institutions, digital transformation and innovation./.