The annual Vietnam Finance Forum 2019 was held in the northern province of Quang Ninh on September 19 by the Ministry of Finance, focusing its discussion on the theme of “Fiscal and Financial Policy Reforms as Drivers for Renewing the Growth Model and Restructuring the Economy in Vietnam”.

Deputy Minister of Finance Do Hoang Anh Tuan speaks at the Vietnam Finance Forum 2019 in Quang Ninh province on September 19 

In his opening remarks, Deputy Minister of Finance Do Hoang Anh Tuan said Vietnam’s 10 years of renewing the growth model and restructuring the economy as well as national finance have shown initial success, but huge challenges are lying ahead.

 Though the country’s annual economic growth averaged 6.35 percent over the past five years, the quality of growth and growth model renewing has remained limited, he said, emphasizing that economic growth must be effective, sustainable and inclusive.

 It is necessary to develop financial and budgetary policies with social issues, particularly poverty reduction, taken into account, the official noted, adding that public services must be also developed to meet regional and international standards, and sustainably developing financial policies must be in line with addressing environmental issues as Vietnam is among 10 countries most vulnerable to climate change.

 Head of Development Cooperation section of the Embassy of Germany Sebastian Paust said 2019 is the year for Vietnam to prepare for the socio-economic development strategy for 2021 – 2030 which will contribute to shaping financial reforms, as Vietnam is moving towards an active digital transformation.

 The modern reform framework, espeicially improving the management efficiency in public finance, is crucial to that upcoming long-term reform process, the diplomat said.

 He also highly spoke of the Vietnamese Government’s approach towards a financial policy that drives the growth model and its efforts to restructure national financial policies.

 At the forum, participants discussed the current status of Vietnam’s growth model and economic structure, and recommended solutions to renew the country’s growth model and restructure the economy for 2021 – 2030 with a vision towars 2045.

 They also reviewed the current financial policies as contributors to the fast and sustainable growth, and pointed out the limitations of those policies.

 According to Prof. PhD Ngo Thang Loi from the National Economics University, the biggest obstables to the country’s growth model renewing lies in the lack of quality manpower and advanced techologies, ineffective policies in high-tech investment and weaknesses of the private sector.

 It is critical to see the private sector as not only an important but also a fundamental driving force and a main pillar to create breakthroughs in developing the economy, he said.

 The scholar urged policymakers to provide better environment and equal opportunity to access development resources for different types of businesses and to cut input costs for them by promoting capital market, labour and land acquisition.