Five-year restructuring plan aims to improve national economic competitiveness

Vietnam aims to aim to create a breakthrough change in the growth model towards higher productivity, quality and competitiveness. (Illustrative image. Photo: VNA)

Hanoi – The Ministry of Planning and Investment has said that it is coordinating with relevant ministries, agencies and localities to build a national economic restructuring plan for the 2021-2025 period, with an aim to creating a breakthrough change in the growth model towards higher productivity, quality and competitiveness.

The objectives of the plan include improving the efficiency of resources, the self-reliance and adapting capacity of the economy, heading to the formation of a science-technology and innovation-based economy, ensuring fast and sustainable growth.

It also aims to enhance the internal strength of the economy and domestic businesses, forming suitable economic structure and upgrading the value chains of sectors, while drastically implement digital transformation and the building of digital economy, digital government and digital society.

Specific goals set by the plan for the 2021-2025 period include 6.5 percent rise in labour productivity each year; 3.7 percent of State budget over-expenditure each year averagely; less than 60 percent of annual public and Government debts hitting ceiling rate; keeping the safe public debt level at about 55 percent of the GDP and Government debt ceiling at less than 50 percent of the GDP.

The ratio of social investment is expected to reach 32-34 percent of the GDP, while public investment management institution is raised to international standards. Meanwhile, bed debts are subjected to be kept at under 3 percent.

In 2025, the scale of stock market capitalisation is expected to reach about 120 percent of the GDP, while the outstanding balance of the bond market is hoped to stand at 55 percent of the GDP.

Vietnam targets the acceleration of 10-15 positions in the quality of land administration index in the Global Competitiveness Index by the World Economic Forum in 2025 compared to that in 2019.

The country hopes to have about 1.5 million businesses in 2025, including 60,000-70,000 medium and large-scaled firms.

In 2025, at least 10-25 national products are expected to have trademark in the international market, contributing to improving the position of the country in the global value chain.

Meanwhile, digital economy is hoped to account for 20 percent of the GDP.

In 2025, the State-owned enterprises are expected to be restructured, basically settling ineffective firms and improve State-owned businesses’ efficiency.

In the draft plan, the ministry also gave five major solution groups to complete the goals.