For the economy to achieve a growth rate of over 8%, one of the most important driving forces is public investment. In fact, public investment is considered the “key” to Vietnam’s strong economic growth in 2025.
Determined to achieve growth target of 8% or more
At the 9th Extraordinary Session, the National Assembly passed a Resolution on supplementing the 2025 socio-economic development plan with a growth target of 8% or more.
The Resolution clearly states that in 2025, the focus will be on promoting growth with the target of reaching 8% or more, associated with maintaining macroeconomic stability, controlling inflation, ensuring major balances of the economy; harmoniously developing the economy with society and protecting the environment, ensuring national defense and security; creating the premise for higher growth in the following years.
In 2024, the National Assembly Resolution set a target of gross domestic product (GDP) of 6 - 6.5%, but with the efforts of the entire political system, Vietnam's economy recorded a growth rate of 7.09%, which is an impressive growth rate in the context of the world situation continuing to develop in a complex and unpredictable manner. Thus, setting a growth target of 8% or more in 2025 requires us to continue to make great efforts, and the synchronization and cooperation of the entire political system to achieve it.
To achieve the goal, the National Assembly has clearly stated a number of key tasks and solutions for the Government and relevant agencies. Accordingly, the National Assembly has proposed five main groups of tasks and solutions for the Government and relevant agencies to implement. First, promote the improvement of institutions and laws and improve the effectiveness of law enforcement. Second, focus resources on completing a synchronous and modern strategic infrastructure; clear and effectively use public investment resources. Third, focus on reforming administrative procedures, improving the investment and business environment, creating all conditions to quickly resolve investment procedures, difficulties and obstacles in investment and business activities, and encourage investment from all economic sectors. Fourth, promote and renew traditional growth drivers. Fifth, strongly promote new growth drivers, develop new and advanced production forces.
It is no coincidence that the issue of perfecting institutions and laws and improving the effectiveness of law enforcement organization is identified by the National Assembly as the first task and solution to implement. Because institutions are considered one of the three major bottlenecks. General Secretary To Lam has frankly pointed out that among the three biggest bottlenecks today, which are institutions, infrastructure and human resources, institutions are the "bottleneck of bottlenecks", the quality of law making and perfecting has not met the needs of practice; the organization of law enforcement and policies is still the weak link.
Institutional bottlenecks and “weak links” in law enforcement are among the major barriers to our socio-economic development. Therefore, it is necessary to find solutions soon to remove these bottlenecks and barriers. This requirement becomes even more urgent when we are working together to realize the growth target of 8% or more in 2025.
The viewpoint of innovation in law-making thinking was once again raised by the National Assembly for the Government and relevant agencies, that is, law-making must be in the direction of "both strict management and development creation", abandoning the mindset of "if you can't manage, then ban"; promoting the method of "management by results", strongly shifting from "pre-inspection" to "post-inspection" associated with strengthening inspection and supervision. Creating a favorable environment for investment, production and business, science and technology development, innovation, promoting digital transformation. Continuing to perfect the legal framework to promote rapid, healthy and effective development of all types of markets, including financial, securities, science and technology, labor, real estate markets... If the institution is perfected in accordance with the spirit of the resolution, along with good implementation of the remaining 4 groups of solutions, we believe that our growth target for 2025 will be achieved.
The National Assembly's Resolution clearly identifies five groups of tasks and solutions to achieve the growth target of 8% or more in 2025. However, to realize this target is not an easy task, requiring the efforts, joint efforts, and consensus of the entire political system. To do so, the Government and relevant agencies and localities must immediately issue a plan to implement this resolution. Because as emphasized by National Assembly Chairman Tran Thanh Man, "the growth target of 8% or more must be determined to achieve. There must be synchronization from the Party, State, Central, local to the entire people to promote strength to be able to achieve it. Each ministry, each sector, each level must get involved, solve each problem one by one to quickly resolve it".
What is the solution?
According to economist Dr. Vo Tri Thanh, the world economy in 2025 may face many difficulties, including geopolitical conflicts, increased trade protectionism and climate change risks. In addition, the global economic recovery process is still slow, while Vietnam's major economic partners such as the US and China are forecast to grow more slowly than in 2024. This could negatively affect Vietnam's trade and exports.
"Vietnam needs to supplement solutions on immigration procedures, visas, promotion and development of tourism products to enhance its attractiveness and attract international tourists. At the same time, it is necessary to promptly and thoughtfully implement policies to support vulnerable groups, unemployed and redundant workers in the process of streamlining the Party and State apparatus. At the same time, promoting public investment, especially the implementation of key national infrastructure projects, will contribute to promoting sustainable economic growth," said Dr. Thanh.
Economist Ngo Tri Long agrees that the global economy is facing many uncertainties, especially the decline in trade in Vietnam's major export markets such as the US, EU, and China. If demand in these markets decreases, the growth rate of key export industries such as textiles, footwear, and electronics will be affected.
Inflation remains a major concern. In the context of volatile energy and food prices, if the State Bank has to apply tight monetary policy to control inflation, high interest rates could reduce the incentive for domestic investment and consumption.
Another important factor is public investment, which is considered an important driving force for growth. However, according to experts, the progress of public investment disbursement is still slow due to complicated administrative procedures, legal problems and limitations in implementation capacity. If this problem is not resolved, it will be difficult for Vietnam to achieve the expected GDP growth rate.
According to expert Dinh Trong Thinh, Vietnam's economy will still face many challenges, including geopolitical instability and international tensions that could disrupt supply chains, affecting exports and FDI attraction.
In addition, the uneven recovery among economic sectors has resulted in growth not being stable and sustainable, while domestic enterprises still face many difficulties due to increased production costs, limited access to capital and a lack of strong recovery of purchasing power in the market.
According to economist Bui Kien Thanh, to achieve double-digit growth, Vietnam needs to implement many breakthrough solutions synchronously. Firstly, it is possible to reduce corporate income tax for innovative enterprises, increase investment or expand production. At the same time, it is necessary to provide tax incentives for export, high-tech and start-up enterprises to improve competitiveness.
Second, there should be a strong reward and support mechanism for businesses with breakthrough initiatives, especially in the fields of technology, export and manufacturing. Research support funds, intellectual property protection policies and public-private partnership programs will help promote innovation.
Third, Vietnam needs to have policies to attract and retain domestic talent, while opening up to attract good personnel from abroad. Lessons from Singapore show that creating a favorable working environment, reasonable remuneration policies and research support will help attract international experts as well as overseas Vietnamese to contribute to the homeland.
Fourth, promote research and application of new technologies. Technology, especially artificial intelligence (AI), big data, blockchain and automation, will be important driving forces in the digital age. It is necessary to promote investment in research, support businesses in digital transformation and develop high-tech business models.
"If the above solutions are implemented synchronously and drastically, Vietnam will not only achieve double-digit growth but also build a sustainable economy with high competitiveness in the international arena," Mr. Thanh emphasized.
Source: https://baodaknong.vn/dau-la-giai-phap-giup-tang-truong-kinh-te-dat-tren-8-243529.html
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