Promoting economic restructuring

After 10-year implementation of the State and Party’s policies on restructuring the industry and trade sector to enhance the competitiveness of the economy, the sector has contributed significantly to the economic restructuring with a number of outstanding achievements, such as gradually becoming one of the world’s manufacturing and processing centers, and listed among countries with average high global industrial competitiveness (34th in 2020, according to UNIDO). In addition, Vietnam’s international trade has expanded its space and export growth motivation with a number of industries having successfully integrated into the global value chain, such as electronics, textiles, footwear, etc.

The restructuring is for rapid and sustainable development of the industry and trade sector, based on science, technology and innovation, and digital transformation - photo: HL

However, the restructuring process of the industry and trade sector remains slow and has not made obvious changes due to slow industrialization process, dependence on the FDI sector of the processing and manufacturing industry. Furthermore, Vietnam’s economic growth model has become increasingly dependent on external factors in terms of capital, technology, and markets.

Strategic orientations

To achieve the targets set in the Decision No.165/QD-TTg of the Prime Minister on restructuring the industry and trade sector until 2030, the Government has given five directions to achieve the goal.

First, the restructuring is for rapid and sustainable development of the industry and trade sector, based on science, technology and innovation, and digital transformation. Second, self-autonomy in production and sales is to form a new national production capacity. Third, restructuring of the industry and trade sector must be implemented synchronously in the overall economic restructuring associated with innovation of growth models. Fourth, innovative thinking must be associated with pioneering actions to implement restructuring of the sector; greening the industry and trade sector associated with environmental protection and climate change mitigation is a long-term, strategic goal. Fifth, restructuring the industry and trade sector must be implemented thoroughly and drastically with the involvement of the entire political system, and enterprises of all economic sectors.

The project also focuses on five major strategic orientation groups for the development of the sector in the period up to 2030.

Firstly, new growth drivers of the sector must be defined, with priorities given to developing foundation and supporting industries to master the manufacturing sector.

Secondly, supply chains and value chains of industries must be developed based on comparative advantages at the national, regional and local levels.

Thirdly, a system of large corporations and enterprises with brands and global competitiveness associated with strengthening competition management and anti-monopoly must be formed.

Fourthly, completing the institutional and policy system must be focused on; productivity, quality, added value in production, export and competitiveness of the industry and trade sector are to be improved.

Fifthly, the industry and trade sector is to be greened, focusing on developing green and environmental industries, promoting green consumption and developing circular economy.