Executive summary

In 2011, after 25 years witnessing significant development achievements, alongside with drammatic difficulties and shortcomings, Vietnamese economy enters a new development phase with various new tasks. The XI national Party Congress Plenum (in January 2011) passed the Platform on National Development during the transitional period towards Socialism (with supplements for the development in 2011), and the National Socio-economic development Strategy 2011 – 2020, while reviewing the past national development process, proposing viewpoints, breakthroughs, and significant targets for future national development. Of which, changing socio-economic development model (development model, hereafter) and economic restructuring are seen as core and the most important content, requiring prompt and effective implementation for achieving development goals. These two issues have also been hot topics over recent years, particularly given a fact that Vietnamese economy has burdened with adverse impacts from the global financial crisis and economic regression, making many potential weaknesses exposed that restrained the nation’s sustainable development. It is agreed that Vietnam is required to shift its development model, and to restructure the economy for further rapid and sustainable development. This working-paper will review and analyze the necessity, aims, content, and methodology of development model shift and economic restructure in Vietnam, as well as existing difficulties and measures to overcome such difficulties for successful implementation of development model shift and economic restructure. The working-paper consists of three main parts, as follows.

1. The necessity, aims, content, and approach of development model shift and economic restructure in Vietnam.

In addition to solving the above issues, this part also reviews the relationship between development model shift and economic restructure. Over many years of renovation, the widening development model have resulted to some significant socio-economic achievement to Vietnam; however it is unable to maintain such a model in long-term because it will cause several impacts to productivity, quality, efficiency, and competitiveness of the economy, as well as many other social and environmental problems, which will constrain rapid and sustainable economic development in the future. Therefore, it is necessary to change development model and restructure the economy at the same time.

1. Challenges to development model shift and economic restructure

Development model shift and economic restructure are not an easy task at all, but require remarkable efforts to overcome existing challenges and difficulties. And the most noticeable ones include: challenges regarding thoughts, concepts, and awareness; difficulties of intellectual shortage, and the lack of understanding and experiences on new things; challenges stem from vest interest groups and individuals; sluggishness of old structures, institutions, and approaches; constraints regarding organizations and implementation capacity; challenges regarding short-sight visions, and short-term based behaviours.

In summary, even if Vietnam has just embarked in the process of development model shift and economic restructure, there have been many difficulties and challenges witnessed. Therefore, beside proper approaches and schedules, it also requires robust efforts, decisiveness, and consensus of the whole society for successful implementation.

1. Measures to overcome challenges and difficulties for successful implementation of development model shift and economic restructure

Despite of different contents, economic restructure and development model shift are of close mutual interaction, thus need to be carried out at the same time, and subjected to common measures for heading to the same targets. Followings are measures that are suitable to pursue both.

-  Measures on introducing new thoughts and concepts

First of all, it requires breakthroughs in terms of strategy, policies, and solution to make changes in thoughts relating to new model formulation, restructure the economy, reforming management and coordination mechanisms to meet the need of new competitive environment for further rapid and sustainable development, realizing industrialization and modernization as planned

-  Measure on new institutions

Along with changing thoughts and concepts, institution reforms also the first task for development model shift and economic restructure. Major contents of institution reforms include: (i) to concretize Socio-economic development strategy for 2011-2020; (ii)  to review, amend, and supplement existing institutions; (iii) to accelerate planning work of different governmental levels; (iv) to pursue decisively policies on sustainable development with further priority granted to social and environmental factors; (v) to further promote administrative reforms; (vi) to complete policies and legal framework for various markets’ development pursuant to targets of economic restructure; (vii) to change approaches of state regulation and intervention to the economy, via new and amended macro-economic policies and state economic organizations, and; (viii) to further renovate the decentralization from central to local levels.

- Measure on manners and schedule of development model shift and economic restructure

As presented, development model shift and economic restructure make up a complicate and long process, thus it is necessary to be phased into proper stages basing on a comprehensive schedule. Each stage requires specific priorities and breakthroughs pursuant to actual situation in reality. During implementation process, it is necessary to make review and summary on each stage, thereby providing timely adjustments for following phases.

- Measure on mobilizing and tapping national resources

For successful economic restructure and development model shift, in addition to high decision and consensus of the whole society, it also needs sufficient resources, particularly intellectual and financial resources. Therefore, proper aims and measures for mobilizing and tapping national resources are integral part of a solution package for successful shift and restructure.

- Measures on guiding and coordinating process of conducting research, debates, discussions, design, regulation making and implementation regarding development model shift and economic restructure.

Nevertheless, the most important issue is to implement above mentioned measures in a synchronous and effective manners to achieve targets set for development model shift and economic restructure. Hence, different levels, departments, industries, and sectors need to master contents and aims of the process. It’s time to provide suitable mechanisms of monitoring and evaluating for timely adjustment of provided measures according to happenings and development in reality. Appropriate solutions and methodologies are necessary to mobilize available resources in the society, particularly intellectual and human resources from civil organizations and unions for better monitoring and evaluation of development model shift and economic restructure process at various levels.

In summary, development model shift and economic restructure are urgent requirements that Vietnam has to fulfill in the time to come for enhancing productivity, quality, efficiency, and capacity of the economy, then achieving rapid and sustainable development. However, this is a difficult and prolong task with many unprecedented and complex issues in Vietnam. Whereas, there are no official documents (i.e. Resolution of the Central Party) issued on this matter, that makes the implementation faces with several challenges, especially ones relating to thoughts, concepts, and awareness. The XI Party Plenum (January 2011) approved the Resolution on National construction during the Socialism-oriented transitional process (with supplements and amendments for 2011), and the Strategy on Socio-economic development 2011 – 2020, which emphasize contents of development model shift and economic restructure. These are important premises for the Party to promulgate a specific resolution on this issue, providing a foundation for other levels, industries, and localities to concretize with other detail documents, policies, and measures of their own. Nevertheless, the most crucial factors are implementing enforcement and efficiency. Thus, involved levels, industries, and localities are required to be decisive in their efforts of coordinating, managing, and implementing provided contents and targets.


Source: VNEP