Minister of Planning and Investment Nguyen Chi Dung  (Photo: VNA)

Hanoi (VNA)
– The quality of Vietnam’s economic growth in 2011-2017 has improved in many aspects with high expansion of gross domestic product (GDP) and increasing labour productivity and incremental capital output ratio (ICOR).

Minister of Planning and Investment Nguyen Chi Dung affirmed the positive outcomes at the May 25 debate during the fifth session of the 14th National Assembly in Hanoi.

He said the business environment and the national competitiveness have also seen a lot of progress in recent time.

The average per capita income reached 2,385 USD, approximately doubling that of 2010.

The human development index of Vietnam has also significantly increased, he added.

Responding to deputies’ concern over problems related to foreign investment such as environment pollution, transfer pricing, trade frauds or slow technology transfer, Minister Dung stressed that the FDI sector is an indispensible part of Vietnam’s economy, especially in the light of extensive and intensive global integration.

The important matter at present is helping the domestic private economic sector to join the global value chain and creating a strong link with the FDI sector, he said.

The Government will put out new orientations to attract foreign investment in the coming time, focusing on hi-tech projects using less land and natural resources, he added.

Priority will be given to investors who are able to transfer technology to and embrace connectivity with domestic enterprises, according to the minister.

Dung also underlined labour productivity as one of the core factors to improve growth quality and push reforms of growth models.

He referred to optimising opportunities from the fourth industrial revolution (Industry 4.0) as one of the most effective measures to increase labour productivity and help developing countries like Vietnam to accelerate growth and narrow development gaps with developed nations in the world.

The labour productivity in Vietnam is on the upward trend in recent years, expanding by nearly 6 percent in 2017 and an average 4.7 percent in the 2011-2017 period.

“This is a good sign, but we cannot be satisfied,” he said, adding that Veitnam’s labour productivity remains at the low level in the region.

He noted that the Government is directing the Ministry of Planning and Investment and relevant ministries and departments to devise measures to reform growth models, increase growth quality, labour productivity and competitiveness of the economy in the context of the 4.0 industrial revolution.-VNA