Proper time for reshaping growth model
-   +   A-   A+     01/12/2010

Việt Nam should restructure its growth model and improve the efficiency of the national economy, according to the National Competitiveness Report released by the Asia Competitiveness Institute on Tuesday in Hà Nội.

The suggestion is similar to the spirit of the socio-economic development strategy for the next decade that the Vietnamese Government is developing.

Việt Nam should restructure its growth model and improve the efficiency of the national economy, according to the National Competitiveness Report released by the Asia Competitiveness Institute on Tuesday in Hà Nội.

The suggestion is similar to the spirit of the socio-economic development strategy for the next decade that the Vietnamese Government is developing.

Background

Presented by well-known professor Michael E. Porter, the father of modern competition theory, the report illustrates all strengths and weak points of the economy.

Mr. Michael E.

Professor  Michael E. Porter  at the international workshop to introduce National Competitiveness Report, Hà Nội, November 30, 2010 - Photo: VGP

Porter was deeply impressed with the achievements gained by Việt Nam during the past years of renovation. The most outstanding features include stable growth rate, quick and widespread poverty reduction, and quick post-crisis recovery.

However, the overall prosperity rate and economic productivity are low. And Việt Nam needs to create proper adjustments to fine tune the current growth model, he said.

The current model is predominated with strong economic structure transformation, which was kicked off with international integration through the full use of advantages like cheap labor.

But Việt Nam will face challenges to surpass the middle-income level when the price of labor is no longer cheap. The current trade deficit is attributed to shortcomings in industrial planning and shortages of skillful workforce and infrastructure.

Future strategy

Right after the introduction of the report, a workshop was held with the participation of many professors and senior officials from the Government, the Việt Nam Chamber of Commerce and Industry (VCCI), the World Bank, Intel Việt Nam, and the Việt Nam Young Entrepreneurs Association, to discuss the future strategy for Việt Nam

Participants agreed that higher productivity, investment efficiency, infrastructure, labor skills, and administrative reforms are the solution.

Mr. Rick Howarth, Intel Việt Nam General Director, voiced his concern over unskilled workforce, electricity shortage, weak distribution chain, and weak supporting industries.

Meanwhile, WB’s Country Director Kwakwa suggested the separation of the ownership and business management in State-owned enterprises with more transparency in information disclosure.

Việt Nam will consider to set up the National Competition Council to deal with one of the most important issue for a nation, said Deputy PM Hoàng Trung Hải.


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