Government issues action plan on economic restructuring

Vietnam’s economy is recovering

The resolution aims to provide an appropriate and efficient structure for each sector and industry, linking them to the economy at large. It outlines plans to develop new technology-based national products, make breakthroughs in national competitiveness with the improvement of some key industries, efficiently change the growth model, and increase the resilience of the economy.

The country aims to increase labour productivity by an average of over 6.5 per cent annually. By 2025, it wants to narrow the gap of national competitiveness with countries in ASEAN-4, while reducing the state budget deficit to 3.7 per cent of GDP.

The size of stock market capitalisation is targetted at least 85 per cent of GDP and outstanding debt in the corporate bond market is expected to reach 20 per cent of GDP.

The nation plans to spend at least 1 per cent of GDP on scientific research and technological development while increasing the number of businesses focusing on technological innovation by 15 per cent on-year. Accounting for 1.5 million groups – of which about 70,000 are medium- and large-sized enterprises – the increasing contribution of the private sector is anticipated to hit 55 per cent of GDP.

The aim is to have about 35,000 cooperatives by the end of 2025, of which more than 3,000 will be high-tech collaborations.

To reach the targets, the resolution sets out a number of tasks. They include focusing on the restructuring of public investment, state budget, and credit institutions.

The country will concentrate on developing diverse markets and increasing efficiency in the distribution of resources.

The resolution also presents solutions for the development of the urban economy, increasing regional links and the role of key economic regions, restructuring industries in terms of modernisation, and promoting green projects.

The government asks ministers, leaders of government agencies, and chairmen of people’s committees to implement the tasks into their socioeconomic plans.