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Official Gazette

Wednesday, April 1, 2020

Vietnam to focus on quality, sustainable growth

Updated: 08:33’ - 27/04/2011

The 2011-2020 Socio-Economic Development Strategy was adopted at the XIth National Party Congress of the Communist Party of Vietnam held in January 2011. Below is Part IV “Socio-economic development orientations, renewal of the growth model, economic restructuring” of the Strategy.

To strongly develop productive forces, build appropriate relations of production and form comprehensive institutions of the socialist-oriented market economy. To transform the growth model from largely extensive development to rationally extensive and intensive development, expanding scale while attaching importance to increasing quality, efficiency and sustainability of the economy. To restructure the economy, focusing on restructuring production and service sectors suitable to various regions; to boost the restructuring of enterprises and adjust market strategy; to quickly increase the local value, added value and competitiveness of products, enterprises and the entire economy; to develop the knowledge-based economy. To link economic development with environmental protection and green economic development.

1. To perfect the institutions of the socialist-oriented market economy; to ensure macro-economic stability; to mobilize and efficiently utilize resources

Perfection of the comprehensive and modern market economy institutions creates an important prerequisite for boosting the process of economic restructuring, transformation of the growth model and macro-economic stabilization.

To further renew the formulation and enforcement of laws to ensure fair and transparent competition among enterprises of all economic sectors. To renew the planning and administration of economic development under the market mechanism while properly implementing social policies. To implement a system of appropriate mechanisms and policies, especially financial and monetary mechanisms and policies, aiming to raise the growth quality and ensure the safe and healthy development of the economy.

The national financial policy must rationally mobilize and efficiently distribute and utilize all resources for socio-economic development; and equally distribute benefits. To further improve tax policies and systems, the price management mechanism, the laws on competition and control of business monopoly and protection of consumers, and the policies on income, salary and wage. To implement a positive budget balance, ensuring a reasonable percentage of savings for development investment; to gradually reduce the budget deficit. To continue renewing the financial mechanisms and policies applicable to state-owned enterprises, particularly economic groups and corporations. To strictly manage foreign loans and foreign debt payment; to keep the government debts, national debts and public debts within safe limits. To enhance the budget-supervising role of the National Assembly and the People’s Councils at all levels.

The monetary policy must be proactive and flexible to boost sustainable growth, rein in inflation and stabilize the currency value. To form a synchronous legal framework for banking activities. To expand forms of via-bank payment and non-cash payment. To flexibly implement the policies on interest rates and exchange rates on the market principles. To renew the policies on foreign exchange and gold management; to incrementally expand the scope of capital transactions; to intensify inspection and control toward eliminating the use of foreign currencies as payment instruments in the Vietnamese territory. To enhance the role of the State Bank of Vietnam in making and implementing monetary policies. To closely combine monetary policies with fiscal policies. To consolidate the inspection and supervision of financial and monetary activities.

To complete land law and policies, ensuring the harmony of interests of the State, land users, land use right transferors and investors, creating favorable conditions for the efficient use of land resources for development; to deal with land waste and land-related corruption.

To ensure the rights to business freedom and equality among all economic sectors. To continue renovating vigorously and raising the operation effectiveness of state-owned enterprises, particularly economic groups and corporations. To early complete the institutions of management of operations of state economic groups and corporations. To step up the equitization of state enterprises; to build a number of strong, multi-owner economic groups in which state ownership is dominant. To clearly define the ownership of the State and the right of enterprises to business, improving the mechanism of management of state capital in enterprises. To create favorable conditions for the collective economy to develop in diversified forms and on a broader scale; to adopt reasonable mechanisms and policies to assist cooperative economic entities in personnel training and retraining, market expansion, application of new technologies and access to capital. To encourage the development of various types of enterprises and forms of production and business organization with mixed ownership, particularly joint-stock enterprises. To improve mechanisms and policies to strongly develop the private economy according to planning and law, promote the formation of private economic groups and encourage individuals to contribute capital to state economic groups. To attract foreign investment with modern and environment-friendly technologies and increased alignment with domestic enterprises. To implement the national program on enterprise development in association with the process of enterprise reorganization. To support the strong development of medium- and small-sized enterprises. To create conditions for the formation of large enterprises that can compete on the market. To develop entrepreneurs in quantity and management capacity, ethics and social responsibility. To improve the legal framework to increase attachment between employers and employees.

To synchronously form and smoothly operate all types of markets. To develop commodity and service markets towards trade and investment liberalization. To develop the financial market with a complete structure, fast-growing scale, expanded scope of operation and safe operation, and under effective management and supervision. To develop and effectively control the securities market. To develop the real estate market in a healthy and sustainable manner, thus preventing speculation; to perfect the mechanism of operation of real estate trading floors. To develop the labor market, encourage various forms of employment transactions. To quickly develop the science and technology market; to encourage market-driven scientific and technological activities.

2. To strongly develop industries and construction towards modernization and higher quality and competitiveness

To restructure industrial production in terms of econo-technical sector, region and new value. To increase the scientific and technological content and local-value proportion in products. To selectively develop processing and working industries, hi-tech industries, energy, mining, metallurgical and chemical industries, and defense industry. To prioritize development of products with competitive edge, products capable of joining the global production network and value chain of hi-tech industries, mechanical engineering industry, information and communications technology industry, pharmaceutical industry, etc. To strongly develop supporting industries. To attach importance to the development of industries in the service of agriculture, rural areas, clean energy, renewable energy and new materials along with the application of energy- and material- saving technologies. To incrementally develop biological and environmental industries. To continue appropriately  developing labor-intensive industries.

To bring into play the effectiveness of industrial parks and complexes and step up industrial development based on product assemblies and groups, forming large-sized and highly effective industrial conglomerates; to complete the construction of hi-tech parks and build a number of zones for technical innovation and technological renewal research. To rationally distribute industries nationwide, ensuring the balanced and effective development among all regions.

To develop the construction sector up to the advanced level in the region. To quickly approach and master modern technologies and heighten the capacity of the construction and installation industry to meet the construction requirements at home and be able to compete in international bidding. To vigorously develop the building-materials industry, particularly high-quality materials, and the application of new technologies.

3. To comprehensively develop agriculture towards modernization, effectiveness and sustainability

To tap the advantages of a tropical agriculture for large-scale commodity production with high productivity, quality, efficiency and competitiveness. To quickly increase the export output and value of farm produce, raise farmers’ incomes and living conditions and firmly assure the national food security. To build production and business models suitable to each kind of crop and animal. To encourage the accumulation of land; to develop farms and agricultural enterprises suitable to the size and conditions of each region. To closely associate and harmonize the interests of producers, processors and consumers, the technical and technological application with the organization of production, agricultural development with the building of a new countryside. To substantially renovate the mode of organizing the trading of agricultural products, first of all rice; to ensure the rational distribution of interests in every stage, from production to consumption. To develop the system of farm produce warehouses, contributing to regulating supply and demand. To continue renewing and building organizational models for developing cooperative economy suitable to the market mechanism. To strictly control the change of the use of agricultural land, particularly paddy fields, for other purposes while ensuring the interests of rice growers and rice-growing localities. On the basis of regional planning, to structure crops, livestock, crop seasons and strains to meet the market demand and mitigate damage caused by natural disasters and epidemics. To develop appropriate forms of agricultural insurance. To speed up the application of scientific advances and modern technologies to production, processing and preservation; to prioritize the application of biotechnology to create many plant varieties and livestock breeds as well as production processes with high productivity, quality and effectiveness, quickly raising the added value per unit of cultivated land. To support the development of hi-tech agricultural zones. To step up husbandry on an industrial and semi-industrial scale, ensuring quality and epidemic safety.

To develop forestry in a sustainable manner. To work out plans and policies for appropriate development of production forests, protection forests and special-use forests with higher quality. The State shall invest in and adopt comprehensive policies for management and development of protection forests and special-use forests, while ensuring a stable life for people who are contracted to tend and protect forests. To encourage organizations and individuals of all economic sectors to invest in planting production forests; to link the planting  of raw-material forests with the processing industry immediately in planning work and investment projects; to use revenues from forests for development of forests and getting rich from forests.

To exploit in a sustainable and efficient manner aquatic resources, develop offshore fishing in association with defense and security maintenance as well as marine environment protection. To develop aquaculture under planning, concentrating on products with advantages and high value; to synchronously develop infrastructure facilities in aquaculture areas, to step up the application of scientific and technological advances to production and processing, raising productivity, quality and competitiveness and meeting the food hygiene and safety requirements. To build the fisheries sector up to the regional advanced level.

To plan and effectively develop salt making, meeting the domestic demand and ensuring salt makers’ life.

4. To vigorously develop services, particularly those with high value, great potential and competitiveness

Developing the service sector at a growth rate higher than the production sector’s and the GDP’s growth rate is an important direction of economic restructuring.

To concentrate on developing a number of services with advantages as well as high knowledge and hi-tech content such as tourism, maritime, aviation, telecommunications, information technology and healthcare. To form a number of service and tourist centers of regional or international magnitude. To expand the domestic market, strongly develop domestic trade; to diversify overseas markets and effectively tap markets under free trade agreements and potential markets, quickly increase export and reduce the trade deficit in both scale and proportion, striving for import-export balance. To proactively participate in global distribution networks, quickly develop systems of domestic and overseas distribution of products with competitive edge, and build brands for Vietnamese commodities. To diversify tourist products and forms of quality up to international standards. To modernize and expand services with high added value such as financial, banking, insurance, securities and logistic services and other business-supporting services. To strongly develop scientific, technological, education and training, cultural, information, sports services as well as employment and social security services.

5. To quickly develop infrastructure facilities, particularly transport infrastructure

To basically form a synchronous system of infrastructure facilities with a number of modern works, which is a strategic breakthrough and an important factor to boost socio-economic development and economic restructuring. To concentrate on reviewing and finalizing the planning on infrastructure construction nationwide and in each region, particularly transport, hydroelectricity and irrigation facilities, ensuring the economical use of resources, socio-economic effectiveness and environmental protection.

To diversify forms of investment, encourage and create conditions for various economic sectors, including foreign investment, to participate in infrastructure development.

To concentrate investment resources on the construction of the North-South expressway, upgrade the existing railways and build urban railway systems in major cities. On the basis of the planning, to prepare conditions for the incremental construction of the North-South express railroad according to an appropriate roadmap; to build a number of modern seaports and airports; to renovate and upgrade urban infrastructure in Hanoi and Ho Chi Minh City. To incrementally and synchronously form the North-South transport axis and East-West axes, ensuring linkage between different modes of transport; to build outbound roads up to international technical standards.

To synchronously develop and incrementally modernize the irrigation system, attaching importance to building and consolidating sea dikes, river dikes, pump stations, and salinization prevention and flood drainage works. To build natural disaster prevention facilities and vessel anchorage zones to help mitigate damage for people. To quickly and sustainably develop electricity sources, completing the power grid along with the use of energy-saving technologies, ensuring adequate electricity supply to meet the development demands. To modernize the information and communications sector and information-technology infrastructure. To develop clean and hygienic water supply systems for urban centers, industrial parks and rural population. To basically settle the issues of water drainage and wastewater treatment in urban centers.-

(to be continued)


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