Hanoi (VNA) - The transition to a new business growth model is a process of shifting mindset, perception, and action, where businesses and entrepreneurs play a crucial role.
A long-term strategy for Vietnam’s economy is to effectively utilize growth drivers toward inclusive and sustainable growth in 2024 and beyond.
This remark was made by Hoang Quang Phong, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI), at the Business Forum 2024: ‘Unlocking New Growth Drivers.’ The event was organised by the VCCI and the Business Forum Magazine in collaboration with related agencies on April 12.
According to Phong, the transition to a new business growth model is a process of shifting mindset, perception, and action. In this process, the Vietnamese business community and entrepreneurs play a crucial role.
Phong emphasized that there are also difficulties and challenges alongside opportunities. A major challenge is the investment resources. For instance, for the Green Transition alone, according to estimates by the Asian Development Bank, Vietnam requires about 368 billion USD until 2040, equivalent to 20 billion USD annually.
At the forum, experts acknowledged that despite bright spots in Vietnam's economy, the business community continues to face challenges. To support businesses in recovery and promote growth, on January 5, 2024, the Prime Minister issued Resolution 01 on the key tasks and solutions to implement the socioeconomic development plan and state budget estimate for 2024. As well, the PM issued Resolution 02 on key tasks and solutions to improve the business environment and enhance national competitiveness in 2024.
Additionally, Government Resolution 58 dated April 21, 2023, provides key policies and solutions to support businesses in recovery, and achieving sustainable development by 2025.
The aim of these measures is to remove barriers and difficulties for businesses, enhance competitiveness, and contribute to socio-economic development.
At the forum, policymakers, experts, and entrepreneurs engaged in open discussions on solutions and recommendations to unlock new growth drivers. Most businesses proposed the swift removal of legal bottlenecks and barriers that hinder business investment activities.
Dr. Tran Thi Hong Minh, Director of the Central Institute for Economic Management Research, emphasized the need for institutional reforms to facilitate the recovery and development of the business community.
According to Minh, legal institutions are a crucial resource, even a "key" factor. The Organization for Economic Cooperation and Development (OECD) calculated that if Vietnam completely eliminates the gap in terms of trade and investment barriers, it could increase GDP per capita by an additional 1% after one year, and by 7.3% after 10 years.
Minh said Vietnam needs to pay attention to other internal dynamics of the economy. This includes consideration of its population scale of over 100 million people, its middle class, which could reach over 50 million people by 2050, the expanding 'Gen Z' generation, and the abundant potential of data resources, Minh stated./.
