Illustrative photo. (Source: tuyengiao.vn)

Vietnam must strongly foster the renewal of growth model to accelerate economic recovery post-COVID-19, heard a dialogue held by Vietnam Economics Times on December 4.

It is urgent for Vietnam to innovate growth model at the time of COVID-19 as it will help the country boost recovery after the pandemic crisis, one of the country’s major goals in short term prioritised by the Party and Government in 2022 and the 2022 – 2025 period.

Vietnam’s growth model has revealed multiple weaknesses over the last decade, with the country’s labour productivity only equal to 62 percent of other countries in the same income group, and domestic sector outperformed by foreign-invested sector.

In the past 10 years, total factor productivity and capital contributed 40 percent and 53 percent, respectively, to Vietnam’s Gross Domestic Products (GDP), while labour represented only 7 percent, development economist Dr. Dang Kim Son told the dialogue.

Building Vietnam’s new growth model requires the mobilisation of all resources, from land, workforce, capital to science and technology and digitalisation, according to experts at the event.

Dr. Tran Van Tho from Wasade University in Japansaid provided that the COVID-19 pandemic is kept and the economic growth rebounds to 6 – 7 percent a year, Vietnam can achieve the upper-middle-income country status between 2025 and 2026.

To create breakthroughs for the economy, experts recommended Vietnam to focus on five points of science and technology; transforming from how the country allocates resources from administrative to market mechanism; economic persification based on regional advantages; restructuring of urban spaces; and restructuring of enterprises and economic organisations.

Dr. Nguyen Si Dung, former Vice Chairman of the National Assembly’s Office, stressed the importance of attracting and awarding talents, saying industrialisation first and foremost relies on inventions by Vietnamese people./.