HANOI: Việt Nam will continue to renew the growth model and enhance growth quality to improve economic productivity and competitiveness, stated a Party resolution issued in Hà Nội on Tuesday. Party General Secretary Nguyễn Phú Trọng signed Resolution No 05-NQ/TW during the fourth plenum of the 12th Party Central Committee, which aims at fast, sustained and comprehensive development for the national economy, society and environment.
The resolution said the country will maintain inflation rates below 5 per cent per year and reduce State budget overspending rates to less than 4 per cent of gross domestic product (GDP) by 2020, and about 3 per cent of GDP by 2030. The resolution aims to keep public debt below 65 per cent of GDP from 2016-20, with Government debt reaching no more than 55 per cent of GDP and foreign debt hitting 50 per cent of GDP at most. These caps drop to 60 per cent, 50 per cent and 45 per cent, respectively, by 2030.
About 30-35 per cent of nationwide enterprises are hoped to have creative and innovative activities, and average growth in labour productivity is aimed at more than 5.5 per cent per year over the next five years. By 2020, the ratio of workers with training certificates is expected to reach 25 per cent, and the ratio of agricultural labourers to fall below 40 per cent.
Total-factor productivity (TFP), which accounts for effects in total output growth relative to growth in traditional measures of labour and capital, is set to contribute 30-35 per cent to economic growth during 2016-20. This will help Việt Nam narrow the gap in competitiveness with ASEAN-4 countries, which include Indonesia, Malaysia, the Philippines and Thailand.
The resolution states that Việt Nam will not chase growth at any cost. The country aims to exploit its resources effectively, while trying to take advantage of scientific and technological advancements. The country considers deep growth an important part of development. Instead of relying solely on investment and exports, Viet Nam aims to grow through the domestic market.
The strategic priorities for economic reforms are: completing the institutions of a socialist-oriented market economy, ensuring macro-economic stability, improving the business and investment climate and enhancing human resources quality. Other top priorities include rationalising agriculture in concert with building new-style rural areas, and restructuring public investments, State-owned enterprises (SOEs) and the credit institution system. The State budget, public debt and public non-productive units will also be reorganised.
