Vietnam: Unleashing Its Potential for Growth

In my view, Vietnam’s developmental path leans towards a ‘socialist orientation’, while the influence of the market is somewhat limited, hindering progress. This combination has prevented both aspects of a ‘socialist-oriented market economy’ from fully maturing.

We adopted a ‘market economy’ approach to navigate the challenges faced during the crisis of our centrally planned economy.

Essentially, “development” remains the core objective of Socialism. By embracing the ‘Market Economy’ approach during our most crucial times, we have reaffirmed the significance of the market economy as a vital element of our ‘socialist orientation’.

Despite its small and fragile state, the Vietnamese private sector has played a crucial role in upholding the socialist orientation by generating significant employment and income for workers.

Enhancing job opportunities and increasing incomes for workers are fundamental goals of socialism.

The private sector contributes to 50% of GDP, accounts for 35% of total budget revenue, and creates 50-60% of overall employment.

It is clear that if the market’s growth is stifled, the national economy may struggle, jeopardizing our socialist objectives.

Currently, we operate within a market economy that hinges on price mechanisms, supply and demand, and competitive practices.

In the early years of doi moi (renovation), the government abolished the ration card system, replacing it with a market-driven pricing mechanism that adjusted prices based on supply and demand.

This transition reinvigorated the economy, leading to a flourishing environment and substantial poverty reduction.

However, in subsequent development stages, various issues arose, and sometimes fundamental principles were overlooked. Efforts to maintain bias, uphold ‘ask-and-grant’ systems, and impose complex administrative procedures created bottlenecks and distorted competition.

Moving forward, we must adopt a strategy that effectively balances the ‘market’ and ‘orientation’, with a focus on evaluating essential resources.

Vietnam possesses considerable potential for advancement. Resource markets remain constrained, but opening them could unlock economic prosperity. Additionally, rethinking innovation strategies is essential to harness the unique talents of the Vietnamese people.

Modernizing national and business administration systems will provide substantial momentum for growth. Adopting global best practices will enable us to harness the strengths of the international community.

We still grapple with traditional mindsets. The vast resources for development include wind, solar, oceanic resources, and digital technologies, not just agricultural land.

Fortunately, Vietnam is beginning to explore innovative developmental strategies. The government is setting its sights on sectors like semiconductors and green development, alongside recent guidance from the Party Committee Secretary General regarding Vietnam’s future in digital transformation, paving the way for transformative opportunities.

Now is the moment for Vietnam to embrace renovation and shift towards a new development model. It is imperative to change our thinking and perspective.