The 13th National Party Congress requires: “Continue to strongly innovate the economic growth model, strongly shift the economy to a growth model based on productivity, scientific and technological progress, innovation, high-quality human resources, efficiency and competitiveness of the economy”. This is the long-term strategic viewpoint of our Party on innovating the Vietnamese economic growth model.

The National Assembly also issued Resolution No. 31/2021/QH15 dated November 12, 2021 on the economic restructuring plan for the 2021-2025 period. This Resolution aims to form a reasonable and effective structure in each industry, sector and the entire economy, while clearly transforming the growth model, productivity, quality, efficiency and competitiveness of the economy.

Although Vietnam's economy recorded a growth rate of 6.42% in the first half of 2024, with GDP growth forecast to reach nearly 7% for the whole year, the current growth model has yet to create fundamental changes. The productivity, quality, efficiency and competitiveness of the economy are not high, and the economy still has many potential risks due to its dependence on imported raw materials.

Assoc. Prof. Dr. Bui Quang Tuan - Former Director of Vietnam Economic Institute at the Forum

Therefore, the innovation of our country's growth model aims to improve growth quality, labor productivity and competitiveness, develop the economy, society and environment quickly and sustainably. Do not promote growth at all costs, causing negative impacts. Innovate the growth model in the direction of focusing and relying more on factors that promote labor productivity, effectively use resources and scientific and technological achievements of mankind, all potentials and advantages of industries, fields, localities and the whole country.

According to Associate Professor, Dr. Bui Quang Tuan - former Director of the Vietnam Economic Institute, the economic growth model shows how fast or slow a country develops, based on what driving force and which factor is the main one, whether the structure is modern or not, and what is the quality of growth. Vietnam is moving towards a growth model based on quality, based on science and technology, innovation, productivity, efficiency and ensuring sustainable and in-depth development.

Vietnam is still considered one of the countries with good growth at an average level, despite experiencing many geopolitical fluctuations in the world, such as the recent COVID-19 pandemic. Some indicators of macroeconomic stability also performed well, such as exchange rate fluctuations, trade balance, and budget deficit, all of which are under the control of the State.

However, the Vietnamese economy still seems to have not escaped from extensive growth with the growth momentum still mainly relying on the contribution of capital and cheap labor, while the contribution of TFP (Total Factor Productivity) is still limited. Another "disadvantage" of the growth model in Vietnam pointed out by experts is that investment in science and technology is still limited, institutions for science, technology and innovation are still inadequate, not breakthrough, private enterprises' investment in R&D is still low... Green growth models based on the circular economy have not contributed much to the country's sustainable growth.

Capital contribution still accounts for the majority of Vietnam's economic growth, according to Mr. Bui Quang Tuan - former Director of the Vietnam Economic Institute.

The former Director of the Vietnam Economic Institute acknowledged that in a rapidly changing world, geopolitical conflicts occurring more frequently in the world could affect Vietnam's economic growth. New economic development trends are emerging, bringing many opportunities to innovate our country's economic growth model. For example, new technology trends (Industry 4.0), green and digital are flourishing; globalization and integration continue to be promoted; international commitments create conditions (Net Zero Commitment); many resources from international cooperation (JETP...); large population (digital resources), young population structure, good access to technology (71% of people use the internet)...

Regarding solutions, according to Mr. Tuan, it is necessary to rely more on new growth drivers from science and technology, sustainable economic models such as green economy, circular economy. The economy can make breakthroughs thanks to innovation, the more creative and drastic the implementation, the higher the growth quality will be, the faster and more sustainably the economy will develop.

The Associate Professor also emphasized that upcoming policies not only aim to improve capital efficiency and labor quality but also need to invest in technological change to promote rapid economic growth in the long term.

Mr. Tuan also proposed solutions to approach the green ecosystem, digital ecosystem, and innovation. Creating a connection between subjects in the ecosystem ensures the conditions of the ecosystem. At the same time, it is necessary to perfect institutions and policies, have pilots, specifics, breakthroughs... Innovation continues to play a key role in mobilizing resources, especially for the non-state economic sector...