After the accumulation period, Vietnam enters the breakthrough year.

To promote economic growth in 2025 in particular, and create momentum for breakthroughs and sustainable development in general in the coming period, removing institutional bottlenecks is considered one of the most important factors.

Breakthrough to remove institutional bottlenecks

Looking back, 4/5 of the past period in the 2021-2025 Socio-Economic Development Plan recorded an average GDP growth of only 5.81%/year (GDP growth rates in 2021-2024 were respectively: 2.55%; 8.54%; 5.07% and 7.09%). Assuming that in 2025 the GDP growth rate reaches 10%, the average for the whole period will reach 6.65%; and if the GDP in 2025 reaches 9%, the average for the whole period of 2021-2025 will reach 6.45%; and if the GDP in 2025 reaches 8%, the average for the whole period of 2021-2025 will reach 6.25%. Thus, in terms of the average GDP growth target, the 2021-2025 Socio-Economic Development Plan will now achieve what level it achieves, depending entirely on the implementation results of 2025. From the above data, perhaps our greatest wish is that this year's GDP growth will be at 10% so that the average for the entire 5-year period will reach 6.65% - slightly exceeding the low limit in the 2021-2025 Socio-Economic Development Plan (the 5-year average GDP target is from 6.5-7%).

Although we know that each additional % growth this year will help improve many indicators for the entire period, this target will not be easy. Therefore, the most likely scenario is to grow at around 8%, while consolidating resources and foundations for a real breakthrough period in the next 5 years. Therefore, the successful implementation of the 2025 Socio-Economic Development Plan (in which the growth rate is expected to reach at least 8%), creating favorable momentum, striving to achieve the highest targets of the 2021-2025 Socio-Economic Development Plan, is also the focus of the Government's direction and administration.

To promote economic growth in 2025 in particular, and create momentum for breakthroughs and sustainable development in general in the coming period, removing institutional bottlenecks is considered one of the most important factors. As General Secretary To Lam has repeatedly affirmed, the three biggest bottlenecks today are institutions, infrastructure and human resources; in which, institutions are the “bottleneck of bottlenecks”.

The Government and the Prime Minister have also repeatedly mentioned this issue in their directives, emphasizing that institutional solutions are “breakthroughs of breakthroughs”. Most recently, in Resolution 01/NQ-CP on key tasks and solutions to implement the Socio-Economic Development Plan and State Budget Estimates for 2025, the Government identified institutional breakthroughs as “breakthroughs of breakthroughs”, which must be done early and ahead to pave the way for development.

According to Mr. Dau Anh Tuan, Deputy Secretary General of VCCI, to achieve the target of high growth, institutional solutions are certainly very important. In particular, three main groups of issues that need to be addressed and reformed include: Quality of the legal document system; Difficulties in administrative procedures; Quality of implementation at all levels, especially at the local level. And throughout these three groups of issues, poor coordination between ministries, branches and localities is still the root factor.

“Not long ago, we coordinated with a province to survey 30 projects that had just finished investment and redraw the process that the projects had to go through in reality. This process is very different from the regulations on paper (the process on paper we see is very convenient), because there needs to be coordination between departments, ministries, and branches. Many times, just one problem can cause the project to be blocked,” said Mr. Tuan, adding that the legal document system in the coming time needs to have important changes; along with that, reviewing and amending policy processes and administrative procedures to make them “neat”, shortening the time to comply with administrative procedures through the application of information technology, and strengthening coordination between ministries, branches, etc.

Exports are one of the important drivers of growth.

Replicating successful lessons

In addition, when it comes to high growth, the practical experience of localities that have continuously maintained double-digit growth should also be a lesson for the national level. “The common characteristics of localities that have achieved double-digit growth are a very favorable business environment, administrative procedures are implemented in a streamlined, convenient direction, and the spirit of supporting businesses and supporting business activities is very good. I believe that Vietnam tends to change from the bottom up. So how to create space for dynamic and creative localities and instead of only 7-8 localities with double-digit growth like now. If we have about 30 or 40 localities with double-digit growth, Vietnam's overall growth rate will certainly improve significantly,” Mr. Dau Anh Tuan expected.

Sharing the same view, Deputy Minister of Planning and Investment Nguyen Duc Tam said that to achieve the GDP growth target of at least 8% and strive for double-digit growth, one of the important driving forces is to innovate and perfect institutions. However, along with that, it is necessary to continue to maintain macroeconomic stability, control inflation and ensure major balances of the economy. "This is one of the key tasks, although we strive for high growth rates, we still have to ensure the fundamental factors of the macro economy as well as control inflation," said Mr. Nguyen Duc Tam, along with that is to continue to operate fiscal and monetary policies in a proactive, flexible, timely, effective and synchronous manner.

Renewing media growth drivers is also an important solution. Regarding investment, according to the 2025 plan, ministries, sectors and localities will need to disburse a total public investment capital of about VND 295 trillion, plus the amount carried over from 2024 according to the law of about more than VND 300 trillion. This is a very large number. If we can disburse all of this capital, it will create a driving force to attract other economic sectors, as seed capital to attract and promote growth.

The Government has just issued Resolution 01/NQ-CP on the main tasks and solutions to implement the Socio-Economic Development Plan and the State Budget Estimate for 2025. The Resolution clearly states: In order to successfully implement the goals and tasks of the Socio-Economic Development Plan for 2025 and the entire 5-year period of 2021-2025 according to the Conclusions and requirements of the Central Committee, the Politburo, and the Resolution of the National Assembly, the Government requests all levels, sectors, and localities to focus on directing, operating, and achieving GDP growth of the whole country in 2025 of at least 8% and striving for double digits in more favorable conditions (higher than the target set by the National Assembly of 6.5-7%, striving for 7-7.5%). The GRDP growth target of localities in 2025 is at least 8-10%, especially Hanoi and Ho Chi Minh City. Ho Chi Minh City, potential localities, large cities are locomotives, growth poles need to strive for a higher growth rate than the national average to promote a stronger role in 2025. Promote the strength of solidarity, the spirit of innovation, constant efforts to be creative, dare to think, dare to do, the will to be self-reliant, self-reliant and the desire to rise up, join hands and unite, turn all difficulties and challenges into breakthrough opportunities, high determination, great efforts, drastic actions according to the theme "Discipline and responsibility; proactive and timely; streamlined and effective; accelerated breakthrough".

In addition, stimulating domestic consumption is also one of the important tasks. The Government has recently issued a Decree on reducing value added tax until the end of June 2025 to support businesses and stimulate consumption of goods, stimulating domestic demand. Stimulating domestic consumption, including attracting domestic and foreign tourists... will also be resources to promote growth. Exports, an important traditional growth driver, also need to be focused on, especially effectively exploiting the 17 signed FTAs ​​and consolidating and expanding markets.

In the contemporary context, science and technology, innovation and digital transformation will be the “key” to take the country further on the path to realizing its development aspirations. But to truly be the “golden key”, we need breakthroughs in both awareness and action. Resolution 57 of the Politburo on breakthroughs in science, technology, innovation and national digital transformation has set out strategic directions, now is the time to focus on implementation. “Right in 2025, it is necessary to select and solve very fundamental issues, creating a foundation for the 2026-2030 period, creating a boost for new labor productivity, and creating trust for society”, the General Secretary emphasized at the recent National Conference on Breakthroughs in Science, Technology, Innovation and National Digital Transformation.

Source: https://thoibaonganhang.vn/qua-giai-doan-tich-luy-viet-nam-buoc-vao-nam-but-pha-159947.html