Streamlining the apparatus - a breakthrough to create momentum for economic development

At the first discussion session of the Vietnam Economic Forum 2025 with the theme: "Breakthrough solutions to achieve the growth target of over 8%" organized by the Laborer Newspaper on the morning of March 13, Dr. Nguyen Dinh Cung, former Director of the Central Institute for Economic Management Research, commented that growth of 8% or more this year and aiming for 10% or more in the following years is a very challenging goal, but it will attract talented people and create pressure forcing us to think differently and act differently.

"Continuing to maintain the same pace as previous years will not achieve the goal," Mr. Cung said, adding: "Each person needs to think differently, act differently and must be empowered to think differently and do differently."

Specifically analyzing the institution, Mr. Cung said that this is the decisive factor for the success or failure of a country. Because pursuing appropriate steps, making breakthroughs and developing superiorly compared to other countries depends greatly on the institution.

"A suitable institution will help expand development space, encourage people, businesses and the state apparatus to continuously innovate and create, thereby effectively mobilizing and allocating all resources in society, ensuring that benefits are distributed harmoniously, creating a dynamic society, continuously improving the quality of development and moving towards prosperity," Mr. Cung analyzed.

Dr. Nguyen Dinh Cung, former Director of the Central Institute for Economic Management

According to Dr. Cung, for many years now, institutions have become barriers and bottlenecks to economic development. The 11th Party Congress has identified three strategic breakthroughs, of which institutions are the most important.

"However, over the years, we have not created a real breakthrough, making the institution a bottleneck of bottlenecks," Mr. Cung said, adding that although the strategic choice was correct, the implementation method was not suitable, leading to a deadlock.

General Secretary To Lam has chosen to build a leaner, higher-quality apparatus. This shows that people are the decisive factor in institutional quality and implementation efficiency. This is a huge change, reflecting a new way of thinking in national governance.

The restructuring of the administrative apparatus helps to remove development constraints due to geographical limitations that do not open up multidimensional development space, creating more favorable conditions for socio-economic development. In addition, there is a streamlined legal revolution, with a plan to eliminate dozens of laws that are no longer suitable or hinder development.

In the past, there were too many regulations that caused businesses to incur compliance costs, losing many business opportunities. So this is a very favorable time for institutional reform. Conditional business sectors should have regulations reduced and switch to a post-audit mechanism. This will create conditions for businesses to expand operations, increase freedom in business, while still ensuring safety criteria.

“I believe that reducing regulations is a necessary path to create a breakthrough in institutional reform. Therefore, streamlining the apparatus is the breakthrough of breakthroughs. To choose the best apparatus, people must be the top priority. Only then will efficiency, effectiveness and efficiency be improved, thereby promoting stronger institutional reform. This will be the driving force to achieve 8% growth this year and aim for double-digit growth in the following years,” Dr. Cung stated his opinion.

Mr. Nguyen Duc Lenh - Deputy Director of State Bank of Vietnam, Region II Branch

From the perspective of a manager in the sector considered the "blood vessels" of the economy, Mr. Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam, Region II Branch, said that to achieve the GDP growth target of 8% or more this year, the State Bank's viewpoint is to mobilize resources, focus on supporting and promoting the economy.

This year, the credit growth target is 16%, with flexible management policies, ensuring stable interest rates at low levels to support businesses and boost the economy. Macroeconomic stabilization policies are also consistently implemented to create momentum for growth.

In the first two months of the year, credit growth in the area decreased slightly compared to the end of last year, but when analyzed in depth, there are still positive signals. Specifically, by the end of February 2025, about 75% of credit capital had been disbursed to the production and business sector, an increase of 1.37% compared to the end of last year. Credit institutions in the area are also implementing very well the 30,000 billion VND loan package for the agricultural - forestry - products sector...

Achieving the credit growth target of 16% this year is not difficult if the economy grows by 8%. However, the core issue is the ability to absorb capital and direct capital flows in the right direction. For example, public investment projects have an economic stimulus impact but need to develop a synchronous surrounding ecosystem to be effective.

The combination of public and private investment will help credit activities develop better. The real estate sector, especially housing, is also having positive developments. Supporting people under 35 years old to buy houses will boost the real estate market and create conditions for people to have the opportunity to own houses...

"These solutions will help Vietnam soon achieve its double-digit economic growth expectations," Mr. Lenh concluded.

Source: https://thoibaonganhang.vn/tinh-gon-bo-may-dot-pha-tao-dong-luc-phat-trien-kinh-te-161327.html