Vietnamese experts suggest rehashing productivity models

VIETNAM: Economists believe the country’s growth model is still overly dependent on capital, labour, and resources, limiting the contribution of productivity to economic growth. This is slower than other ASEAN countries experiencing the same development stage.

Nguyen Duc Hien, deputy head of the Party Central Committee’s Economic Commission, recommended speeding up the country’s transformation towards an efficient and innovation-driven growth model. This will help it to become sustainable and inclusively developed.

“Labour productivity is still low and the gap in labour productivity between Vietnam and other countries continues to widen,” he said, adding that the restructuring of State-owned enterprises had been below expectation.

“The private sector has not been developed strongly enough to play an important role in the economy,” he noted.

Former director of the Vietnam Institute of Economics Tran Dinh Thien said Vietnam should pay special attention to the synchronous development of land and labour markets. “Science and technology, and human resources will be the most important drivers for growth in the next period,” Thien said.

Tran Tho Dat, former president of the National Economics University, noted that the digital economy would drive growth model transformation and economic restructuring with a strategic framework for digital transformation and conditions suitable for investments in digital infrastructure and services. He advised renewing education and training systems to link with digitalisation, especially in supporting start-ups to promote innovation and technology.

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