The government of Vietnam recently released its Vietnam Development Strategy draft for 2021-2030, which emphasizes the country’s need to transform into a modern market economy and embrace technological advances. The Vietnamese prime minister called on businesses to improve human resources and implement technology to increase their position in the global value chain.
According to the draft strategy, Vietnam aims to embrace a market economy model adhering to global norms and standards, and to establish legal frameworks for new business models, the digital economy and Environmental protection. Furthermore, substantial investments in digitalization, artificial intelligence and automation aim to pave the way for Vietnam to continue to attract international investment and sustain its economic growth.
The average GDP growth rate for Vietnam in the period from 2011 to 2018 is 6.2%. The country’s GDP reached USD 250 billion in 2018, translating to a per capita GDP of around USD 2,560 and USD 7,434 in purchasing power parity terms. Vietnam has also become an attractive destination for international companies and investors, receiving total foreign investment of USD 200 billion between 2011 and 2018. Vietnam has also reached a rank of 42 in the 2019 Global Innovation Index (published by Cornell University, INSEAD, and the World Intellectual Property Organization), leading the lower-middle-income nations and at the third position in South East Asia, behind Singapore and Malaysia.
To avoid a middle-income trap and enhance competitiveness and productivity, the World Bank director for Vietnam proposed critical reforms to promote innovation-based growth and capitalize on the fourth industrial revolution, including a modernization of the country’s market institutions and national government to stimulate private domestic and international firms to grow.
(Source: Viet Nam News)