Improve capacity to create momentum for economic recovery after COVID-19

Competitiveness still low

Vietnam has adapted flexibly and safely in combination with effective prevention of the Covid-19 pandemic, and life is gradually returning to normal. However, the socio-economic recovery of Vietnam is still facing many difficulties because the pandemic has not ended, the political and economic situation in the world is facing many unpredictable developments, disrupting global supply chains. All are creating great challenges, but at the same time, they also contain many new opportunities for the country.

The past two years of preventing, combating and adapting to the Covid-19 pandemic are also proof of the self-reliance of the country, ministries, branches, localities and each Vietnamese citizen. In international economic integration, self-reliance is associated with the promotion of internal strength, the synergy of the nation, combined with the strength of the times.

Assessing this issue, Assoc. Prof. Dr. Nguyen Ngoc Toan, Deputy Director of the Institute of Economics (Ho Chi Minh National Academy of Politics), said that, despite many improvements, the endogenous capacity and competitiveness of the economy are still low; have not effectively taken advantage of opportunities from international economic integration.

Meanwhile, because of the high openness of the economy and the large proportion of imports and exports in GDP, Vietnam is easily affected by shocks and fluctuations in the world economy.

In addition, Vietnam is also a country that is heavily dependent on the foreign-invested sector, but the link between foreign and domestic enterprises is still weak, spreading technology and knowledge of foreign-invested enterprises is low.

Sharing Singapore's experience and success, Assoc. Prof. Dr. Vu Minh Khuong, Lecturer at the Lee Kuan Yew School of Public Policy (National University of Singapore), said that self-reliance is the consciousness and motto to constantly improve the fundamental and core strength of the nation in its development efforts.

In order to become a truly self-reliant nation in development, Assoc. Prof. Dr. Minh Khuong recommended that Vietnam maximize its synergy with global resources through a wise strategy and efforts to integrate deeply into the global economy.

Vietnam can make the most of its synergy with global resources through a wise strategy and efforts to integrate deeply into the global economy. Photo: Nguyen Thanh.

The government is the supporter

Also according to Assoc. Prof. Dr. Nguyen Ngoc Toan, the world is undergoing rapid changes under the impact of the 4th Industrial Revolution, globalization, geopolitical conflicts and non-traditional security challenges. Therefore, in order to ensure economic independence and self-reliance, Vietnam must be steadfast in its development guidelines and strategies, that is, building a socialist-oriented market economy; improving the endogenous capacity of the Vietnamese economy, being able to adapt to economic fluctuations and external shocks; actively integrating, diversifying and multilateralizing relations, Vietnam makes friends with all countries in line with the Charter of the United Nations and international law, respecting independence, sovereignty and territorial integrity.

"In order to maintain independence and self-reliance, it is necessary to diversify relationships, make good use of multilateral economic institutions, and avoid the risk of dependence on one country and one market," Assoc. Nguyen Ngoc Toan said.

According to Mr. Luong Hoang Thai, Director of the Multilateral Trade Policy Department (Ministry of Industry and Trade), the process of integration into the supply chain requires not only the participation of foreign enterprises but also the connection of domestic enterprises. Vietnamese enterprises participating in the supply chain must determine a fair competitive position.

The factors of self-reliance must come from localities and especially from the Government. In which, resources are still scattered among localities, there is no focus on planning and coordination as well as planning for private economic development, ensuring no overlap in fields and industries to create key products that are at the same time globally competitive.

“Vietnam has signed 17 free trade agreements, Vietnamese businesses are no longer confined to a market of 100 million people but must develop and improve their competitiveness in a world with billions of people. Therefore, the Government's involvement will be a supporter plus the self-reliance of the private business sector to be able to develop and reach out to a large market," suggested Mr. Thai.