At the second plenum of the Party Central Committee, General Secretary To Lam emphasized four core principles for achieving double-digit growth: substantive growth, macroeconomic stability, efficient use of resources, and ensuring people’s benefits.

These requirements show that growth must not only be faster but also more sustainable and higher in quality. VietNamNet spoke with former National Assembly deputy and former Vice Chair of the National Assembly’s Economic Committee Nguyen Van Phuc about how to realize this goal.

Nguyen Van Phuc: I am pleased that the Party has affirmed that growth should not be measured solely by speed, but must be viewed in relation to quality and sustainability. An economy may achieve high growth in the short term, but if the cost is declining quality, rising inflationary pressure, or imbalances in key indicators, such growth cannot be sustained.

Growth is only truly meaningful when accompanied by increased productivity, improved resource efficiency, and the creation of substantial added value for the economy.

In this regard, macro-economic stability plays the role of a “foundation.” When inflation is controlled, major balances are maintained and policies are operated consistently, the economy can function flexibly, safely, and effectively.

Reality shows that whenever the major balances of the economy are broken, the subsequent adjustment costs are often very large, not only economically but also socially. When trust is eroded, capital flows become more cautious, businesses are more hesitant to invest, and people tend to contract their spending.

The 14th National Congress set an average GDP growth target of 10 percent per year or higher. At the recent 2nd Central Conference, Lam emphasized four core principles, including substantial growth, macro-economic stability, effective resource utilization, and ensuring people's interests. When targets are raised very high, “growth discipline” also becomes stricter. What does this imply for development strategies in the coming period?

The double-digit growth target reflects the country’s aspiration to rise in a new stage of development, where Vietnam seeks not only greater scale but also fundamental improvements in growth quality.

If achieved, by 2030, GDP per capita could reach around $8,500, laying an important foundation for becoming a high-income developed country by 2045.

What matters, therefore, is not just the 10 percent figure, but how to achieve it in a sustainable, high-quality way that can be maintained over the long term.

In my view, this target will only be meaningful if accompanied by a new growth model, in which productivity, quality, and value-added are not merely supporting factors but become the foundation of the entire development process, ensuring that each increment of growth reflects the real capacity of the economy.

The national economy now relies on three main pillars: public investment, the FDI sector, and domestic consumption. The domestic private sector, although identified as the most important driver, still has significant room to fully realize its role.

In this context, shifting the growth model toward science and technology, innovation, digital transformation, the green economy, and the circular economy is not just an option, but a necessity to improve growth quality and strengthen internal capacity.

The Party General Secretary cautioned against chasing achievements or focusing solely on GDP. How should we understand the quality of current growth?

GDP reflects the total value created in an economy in a period, but not all of that value remains within the country or benefits its people, as a significant portion, especially from the FDI sector, may be repatriated abroad.

Therefore, alongside GDP, greater attention should be paid to GNI (gross national income), which more accurately reflects the income that actually belongs to the domestic economy and its people.

When growth is assessed from both scale and structure, the economic picture becomes more transparent, allowing for a more accurate evaluation of internal strength.

High growth driven largely by public investment often comes with risks of waste and inefficiency, even though such spending still contributes to GDP. Therefore, improving growth quality and sustainability requires minimizing waste and inefficiencies as a key priority.

One key principle is maintaining macroeconomic stability, while in reality, high growth is still significantly driven by public investment and exports. How should this be viewed to both support growth and ensure stability?

Price pressures and inflation risks often accompany growth driven by public investment and monetary expansion, which can undermine growth quality and directly affect people’s real incomes and living standards.

Alongside promoting investment, increasing incomes and consumption capacity must be given greater importance in growth strategies. Public investment will be most effective when it unlocks and spreads to the private sector, while also strengthening the domestic market through increased purchasing power.

Lan Anh