Reform hits the ceiling

The Prime Minister is taking a series of solutions to implement socio-economic recovery in 2022, including raising the GDP by 6 - 6.5% and maintaining the CPI at 4%, after the economy was seriously affected by Covid-19.

Reporting to the National Assembly, Prime Minister Pham Minh Chinh affirmed that one of the solutions is to prioritize building and improving institutions and organizing law enforcement, focusing on solving difficulties and reforming administrative procedures, and improving the business investment environment.

In addition, it is to carry out substantive and more effective restructuring of the economy in association with innovating the growth model, raising productivity, quality, efficiency and competitiveness, and developing digital economy and digital society.

He emphasized that the Government is committed to speeding up the construction and development of a modern strategic infrastructure system, especially in transport, energy, digital infrastructure, agricultural and rural infrastructure, and climate change response; and taking public investment to lead and activate social investment, especially the public-private partnership method.

These are just some of the 12 groups of solutions that the Government has set out to fulfill next year's socio-economic targets amid the context that the pandemic is still threatening the economy and people's health.

More drastic solutions

Cải cách chạm trần

In the context that the Government is discussing development indicators, a consultation on reform with a focus and roadmap to 2025 was held recently by the Central Institute for Economic Management (CIEM).

Tran Thi Hong Minh, Director of CIEM, stated that Vietnam’s economic context in 2021 is complicated. Many international organizations have taken a more cautious view of Vietnam's economic development prospects. The World Bank's updated report estimates Vietnam’s GDP this year at between 2.0% and 2.5%, significantly lower than the 4.8% forecast released in August. The figure will be 3.78%, according to the International Monetary Fund’s forecast.

She said that in some areas, reform may have "reached the institutional ceiling", so it is difficult to create more breakthroughs without more drastic solutions. In that context, thinking about national renewal in a modern way is even more necessary to support reforms.

Nguyen Anh Duong, Head of CIEM’s General Research Department, said the economy is facing risks and serious consequences. He agreed with Minh’s concern that reform may have "reached the institutional ceiling".

5 groups of problems must be addressed

In order to accelerate economic recovery and reform towards sustainable development in the 2021-2025 period, Duong said that Vietnam needs to answer five important questions.

Firstly, some experts proposed that the government have fiscal and monetary policies to support the economy that has had slow growth. He said: “However, the interaction between macroeconomic policy tools and economic institutional reform is not discussed thoroughly. Will the use of these packages reduce interest in economic institutional reform?”

Secondly, resources for economic recovery and development are an important content. There are still many resources in the people, and what mechanism is there to motivate people to invest in production and business? The role of public investment is still very important, but how should it be used effectively without affecting other sources of investment?

Thirdly, how should space for new economic activities be opened in a sustainable way such as the digital economy, circular economy, sharing economy? How should policies be developed, together with awareness and determination, in ministries, agencies and localities?

Cải cách chạm trần
 

In particular, new economic activities pose many unprecedented problems, so what approach and principles should be followed to promote coordination between ministries?

Fourthly, in the period of 2021-2025, how should momentum be created for institutional reform towards good international practices, in the context that integration, recovery and sustainable development are important requirements?

Fifthly, improving internal capacity in general and the private sector is necessary, but what conditions are needed to ensure transparency and avoid distortions in resource allocation? How can Vietnamese enterprises more effectively manage risks in the supply chain, especially in the post-Covid-19 period, while still strengthening their capacity to participate more deeply in global and regional value chains?

Change of mind

Cải cách chạm trần

Dr. Vo Tri Thanh said that Vietnam needs to prioritize digital transformation, but to have a digital economy the country must have a database and laws on databases. In addition, reform solutions must create a long-term impact, promote innovation and be breakthrough solutions.

“It is important to change the mindset. We should not just limit ourselves to the old thinking. Vietnam needs to go with the world, not follow or catch up with it,” Dr. Thanh said.

Economist Pham Chi Lan noted that we have not only disrupted the supply chain but also work coordination and the working relationship between the central and local governments.

“Reform must go hand in hand with recovery. Without reform, it is impossible to recover," Lan noted.

Dr. Can Van Luc, Chief Economist of the Bank for Investment and Development of Vietnam (BIDV), said that the quality of legal documents is not high, the consistency is still low, and the vitality and durability of the policy is also a weakness. Issuing of instructions for policy implementation is slow, while the execution is inefficient. This is the bottleneck pointed out by foreign investors.

Dr. Luc said: "If we are not determined to reform drastically, we will fall behind and miss the pace of development."

Tu Hoang

Business environment reform: drastic and consistent

Business environment reform: drastic and consistent

After several years using the World Bank Ease of Doing Business report as a measurement, Vietnam's business environment has made great strides.

Reform lessons: when ministries, branches take decisive action

Reform lessons: when ministries, branches take decisive action

Maintaining a high ranking and improving electricity access scores continue to be the mission of the reform program.

 
 

Other News

.
E-commerce platforms win big in 2021 amid pandemic
E-commerce platforms win big in 2021 amid pandemic
FEATUREicon  31/12/2021 

The Covid-19 pandemic has turned out to be a golden opportunity for e-commerce platforms as online shopping was the only alternative to obtain essentials during lockdown.

Stock market 2021: records broken
Stock market 2021: records broken
FEATUREicon  30/12/2021 

Covid-19 posed difficulties to many people in 2021, but not to securities investors. They earned big money as the VN Index climbed to new highs.

Hanoi warned of more serious traffic jams if it bans motorbikes too soon
Hanoi warned of more serious traffic jams if it bans motorbikes too soon
FEATUREicon  30/12/2021 

If Hanoi authorities prohibit motorbikes by 2025 in the center, when the public transport network is still not capable of satisfying people’s demand, many would have to use private cars. If so, the traffic would be even worse.

Tourism 2021: opens today, closes tomorrow
Tourism 2021: opens today, closes tomorrow
FEATUREicon  29/12/2021 

The tourism industry experienced another tough year in 2021 as policies applied by local authorities changed often.

Farm export deadlock at border gates: long-term solution needed
Farm export deadlock at border gates: long-term solution needed
FEATUREicon  29/12/2021 

Preliminary treatment centers and cold storage warehouses along the border and systematic logistics chains are both needed, experts said.

Finance ministry proposes tax policy to prevent land speculation
Finance ministry proposes tax policy to prevent land speculation
FEATUREicon  29/12/2021 

Prime Minister Pham Minh Chinh has assigned the Ministry of Finance (MOF) to study and design some kinds of tax related to the real estate market, including property tax, in order to stabilize the market and reduce speculation.

ESports could be lucrative for 4G, 5G service providers
ESports could be lucrative for 4G, 5G service providers
FEATUREicon  28/12/2021 

As the telecommunication market is getting saturated, new content services such as livestream and e-sports are expected to help telecom carriers maintain growth.

5,000 container trucks stuck at border gates amid 50 talks with China
5,000 container trucks stuck at border gates amid 50 talks with China
FEATUREicon  27/12/2021 

The Ministry of Industry and Trade (MOIT) reported that 1,555 trucks carrying exports to China are stuck in Quang Ninh as of December 25, and 4,204 in Lang Son as of December 25. Some of them have been deadlocked for a month.

Thu Thiem land auction puts an end to sale of public land at low prices
Thu Thiem land auction puts an end to sale of public land at low prices
FEATUREicon  28/12/2021 

Four land plots in advantageous positions in the new urban area of Thu Thiem in HCM City were sold for VND37.346 trillion through an auction recently.

Hanoi needs to change its way of managing Covid patient treatment
Hanoi needs to change its way of managing Covid patient treatment
FEATUREicon  28/12/2021 

As the number of Covid-19 cases is increasing day by day in Hanoi, the municipal authorities need to create another scenario.

Vietnamese farmers benefit from high-tech
Vietnamese farmers benefit from high-tech
FEATUREicon  30/12/2021 

In recent years, thanks to the introduction of digital technology into agricultural production, Vietnamese farmers have earned millions of US dollars or even tens of millions of dollars.

Casinos suffer heavy losses, wait for brighter days
Casinos suffer heavy losses, wait for brighter days
FEATUREicon  25/12/2021 

As many as 56 businesses in Vietnam are licensed to provide prize-winning games at 63 hotels and nine casino businesses.

Metaverse: the race to enter the virtual universe
Metaverse: the race to enter the virtual universe
FEATUREicon  27/12/2021 

Metaverse is very close to human life. Right now, government agencies, businesses and citizens need a way to be ready to adapt to a future world.

Congestion at border gates, seaports stalls transport of farm exports
Congestion at border gates, seaports stalls transport of farm exports
FEATUREicon  25/12/2021 

Farm exports experienced a tough year in 2021 due to continued congestion at border gates. Despite this, agricultural produce still reached export turnover of $47 billion for the year.

Pandemic offers lessons and once-in-a-century opportunity: MIC Minister
Pandemic offers lessons and once-in-a-century opportunity: MIC Minister
FEATUREicon  25/12/2021 

Vietnam expects to jump into the second position in the region in terms of digital economy, just following Indonesia, officials have said.

When will congestion at Vietnam-China border gates end?
When will congestion at Vietnam-China border gates end?
FEATUREicon  24/12/2021 

Vietnamese exports stuck at Vietnam-China border gates has been a common sight for years.

Parents debate about need for handwriting practice
Parents debate about need for handwriting practice
FEATUREicon  24/12/2021 

Vietnamese parents agree that their children need to be good at math, but disagree on whether they need to have good handwriting.

Vietnamese fruits sell for sky-high prices in world market
Vietnamese fruits sell for sky-high prices in world market
FEATUREicon  24/12/2021 

2021 has been a fruitful year for Vietnam’s agriculture as many farm specialties have entered choosy markets.

Hanoi has ‘more than enough’ money to develop modern transport under new investment model
Hanoi has ‘more than enough’ money to develop modern transport under new investment model
FEATUREicon  27/12/2021 

The Cat Linh – Ha Dong elevated railway project provides a lesson on public asset valuation. Selling and buying back infrastructure projects at their real value will allow the effective usage of resources.

Lockdown is unnecessary amid rising Covid cases in Hanoi: official
Lockdown is unnecessary amid rising Covid cases in Hanoi: official
FEATUREicon  23/12/2021 

The number of Covid cases in Hanoi is increasing rapidly, but experts believe that re-imposing a lockdown would be ‘unnecessary’ and ‘ineffective’.

 
 
 
Leave your comment on an article

OR QUICK LOGIN