Vietnam Economy Growth: Problems and Solutions
Vietnam economy growth now has much prosperity, the growth rate of 7 – 8% is the highest growth rate among ASEAN countries and the world, the CPI is stable, and the growth rate of import and export is high, attracting many FDI projects into Vietnam; stable socio-political situation… Vietnam is highly appreciated by the world for achieving the dual goal of controlling the epidemic while maintaining growth. However, the socio-economic problems that Vietnam is and will have to face are also many. The article analyzes the main problems of Vietnam’s economic situation in the current context and offers solutions to overcome difficulties and build a creative economy.
Problems of Vietnam economy growth
Currently, Vietnam economy growth has achieved high growth, and the epidemic is under control, creating favorable conditions for socio-economic recovery and development.
The macro-economy remained stable, inflation was controlled, and major balances were ensured in the context of many difficulties and pressures. Production and business activities recovered strongly. Foreign direct investment continues to be a bright spot, reaching a new record while competition is increasingly fierce. The fight against corruption and negativity has been promoted.
The year 2023 is an important year in implementing the goals of the Five-Year Plan 2021-2025. Meanwhile, the world situation still has many risks and challenges. In the country, there are still difficulties, there are long backlogs, and the resilience and adaptability of the economy are still limited. If the problems are not solved thoroughly, the situation of the country will become complicated, it is necessary to have necessary solutions to overcome difficulties and build a creative economy.
Employing talents in public agencies
Our Party has proposed three breakthrough solutions: Institutional reform, infrastructure construction, and human resource development. These three breakthrough solutions have been proposed and implemented, but so far, there has been no desired change.
The main reason is that these three breakthroughs were not enough. The situation of “running for office, running for power”, and “running for payroll” still exists, making public agencies lack talented people to work and talented people do not want to work under those “runaways”. because it serves “group interests” rather than national development interests. When talent is not recruited into public agencies, negative effects arise. Because they have to spend money to “buy positions”, civil servants will find ways to corrupt to compensate. The gap between the rich and the poor between the people and the powerful officials affects the belief in the Party and the State. So what should be the solution? How to have a policy of respecting talents?
- Evaluation and promotion of cadres must be based on specific work results, if they are cadres, they must have excellent work, not just be based on degrees, need to review the doctoral training program, should only train doctors for universities and research institutes, remove the criteria for appointing officials who must have academic titles and degrees.
- There must be a mechanism for selecting civil servants in a fair, public, and transparent manner to select talented people from the very beginning. Each ministry needs to set up a council to recruit civil servants – the Minister must be the Chairman of the Council.
- After 2 years of internship, cadres who do not achieve the required results are definitely not accepted into public agencies.
- It is necessary to have a policy to use overseas Vietnamese and foreign intellectuals who are excellent enough to attract them to Vietnam to work in terms of salary, living, and working conditions.
- It is necessary to boldly appoint good and talented people to hold important management positions such as General directors of state-owned companies; Directors of customs offices; Heads of economic zones of high-tech zones; Deans of faculties, Deans of research institutes at universities…
- Building 2 Global Education Centers in Hanoi and Ho Chi Minh City with the program inviting the world’s top universities. If these schools are opened in Vietnam, then Vietnamese students will not have to study abroad, and moreover, they will attract good foreign students to study.
- Vietnamese civil servants must be evaluated publicly and transparently every two years by an independent ministerial-level Evaluation Council with experts inside and outside the ministry. If the required results are not met, they must be replaced.
Institutional renewal of Vietnam economy growth
If the above policy of respecting talents can be implemented, the reform of the new institution can be realized because we have talented people in the institution. The most important issue of institutional innovation is to orient institutional innovation – innovation according to the model of China, Japan, Korea, Singapore… or the model created by Vietnam.
In 2021, Korea rises to be one of the innovative countries, second only to Switzerland, Sweden, the US, and the UK… Korea has a successful strategy of pursuing an innovative economy, through strong investment in basic research combined with application, system reform, and talent mobility. South Korea’s spending on research and development as a percentage of its gross domestic product (GDP) is the second highest worldwide.
China considers the talent development strategy to be the key to comprehensive national construction and development, raising the ruling level of the Communist Party of China, and transforming China from a large country to a population powerhouse. talent, capable of competing with any country in the international arena. For domestic resources, China always encourages localities and businesses to work together to pilot talent management reform and integrate with the talent management system in the world. China builds a mechanism to detect and evaluate talents mainly based on the requirements of responsibility for the profession, and then consider the capacity and achievements; step by step perfecting standards for talent evaluation, overcoming the situation of overemphasizing qualifications, focusing on actual capacity and development potential for evaluation.
For resources from abroad, China focuses on exploiting the advantages of a densely populated country with more than 40 million overseas Chinese. Among them, there are many people who have become outstanding professors, excellent scientists, presidents of famous multinational corporations, etc. China’s development breaks through to a new height, ready to compete for the position of a world power. Being well aware of the important role of that team, China has long-term strategies and specific strategies to attract and use overseas Chinese forces to return to their homeland to work. develop his career and talents while being dedicated to the country.
Currently, the legal system of Vietnam has many shortcomings. Looking at the most developed countries around Vietnam, how did they make the law? Singapore has imported almost all the best British institutional systems. Korea imported the Japanese system and now they are approaching the US system. If Vietnam wants to break through into a developed country, it must definitely build an institution following the model of the most advanced developed countries. There is no other way. The leadership of the Communist Party of Vietnam needs to absorb the experience of advanced countries, ruling in a modern way. To do that, the Party and Government must have a resolution on building the Vietnamese legal system in a modern direction.
You can read the previous article here: Open Business in Vietnam: Establishing a Company
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Q: What is the currency in Vietnam?
The currency in Vietnam is the Vietnamese dong (VND). The exchange rate as of February 2023 is around 23,000 VND to 1 USD.
Q: What are the main industries driving Vietnam’s economy?
Vietnam’s economy is driven by several key industries, including manufacturing, agriculture, and services.
Q: What is the current state of the economy in Vietnam?
Vietnam’s economy has been experiencing rapid growth in recent years, with a 7.11% growth rate in 2019 before being impacted by the COVID-19 pandemic in 2020.