Achieving the growth target is crucial for determining the size of Vietnam’s economy, its per capita income, and its global economic ranking, he told a conference Friday morning.
“There is no other way; we must sustain high and continuous growth from now until 2045.”
The Party, the government and the National Assembly all agree with the goal, and therefore acting without hesitation is necessary, the PM added.
The National Assembly has approved an economic growth target of 8% or more this year, aiming for GDP to exceed $500 billion.
The middle-income trap occurs when a country becomes stuck at an average per capita income level of around $4,000 to $6,000 per year, often due to reliance on natural resources and initial economic advantages, along with a sluggish labor market.
34 economies have escaped the middle-income trap to become high-income nations since 1990, while 108 countries have yet to break free, according to the World Bank statistics.
Vietnam’s per capita income was over $4,700 last year as the economy reached $470 billion in size.
“If we only grow at an average of 7% per year, it will be difficult to achieve our target,” PM Chinh said.
He pointed out that economies that successfully transitioned to high-income status managed to maintain an annual growth rate of around 10% for approximately 30 years.
Japan grew at an average of 11.5% per year from 1951 to 1973, and South Korea maintained 9.6% annual growth from 1963 to 1996.
Similarly, China grew by around 10% annually from 1978 to 2011, and Singapore recorded 8.5% annual growth from 1961 to 1997.
In 40 years of economic reforms, Vietnam has maintained an average growth rate of 6.4% annually.
This demands a higher growth rate in the upcoming years to achieve the 2045 target.
Policymakers must ensure macroeconomic stability, control inflation, and guarantee social welfare. That is, Vietnam will not sacrifice social progress, equity, or the environment in the pursuit of mere economic growth, Chinh said.
Enhancing investment efficiency and improving the disbursement rate of public investment capital are key factors, he added.
The PM required ministries and localities to mobilize institutional, financial, technological, and human resources to harness growth drivers and create economic leverage.
Deputy Minister of Planning and Investment Tran Quoc Phuong suggested that Vietnam should focus on administrative reform, investment procedure acceleration, and removing obstacles for businesses.
The government must implement pilot policies, special mechanisms and breakthrough regulations for projects in high-tech industries, he added.
Phuong proposed that ministries and localities focus on reviewing and refining regulations that are outdated, overlapping, or incomplete. Authorities must continue to identify public investment disbursement as a top political priority.
Additionally, regulators need to develop tax and credit policies to support purchasing power, stimulate domestic consumption, and promote domestic tourism.
The goal is to increase total retail sales and service revenue by at least 12% this year, attract 22-23 million international tourists, and 120-130 million domestic tourists.
Furthermore, Vietnam must effectively leverage opportunities from 17 signed free trade agreements, diversify export markets, and create all favorable conditions for experts, especially top foreign experts and overseas Vietnamese, to work and contribute to scientific research and innovation in the country.
