VIET NAM TARGETS AVERAGE GROWTH RATE OF AT LEAST 6.5% IN NEXT FIVE YEARS

The National Assembly on Tuesday adopted a resolution on the socio-economic development plan for the 2021-2025 period, targeting an average growth rate of 6.5-7% over the period.

The plan is a planning instrument with a multi-sectoral approach which sets out overall objectives: (i) ensuring rapid and sustainable growth on the basis of enhanced macro-economic stability, development of science, technology and innovation; (ii) striving to achieve average growth rate higher than that in the 2016-2020 period and striving to turn Viet Nam into a developing country with modernity-oriented industry and surpassing the low middle-income status; (iii) improving productivity, quality, effectiveness and competitiveness of the economy; (iv) carrying out comprehensive solutions to overcome impacts of the COVID-19 pandemic and boost recovery; (v) bringing into play the cultural values, the strength of Vietnamese, and creativity of individuals; (vi) focusing on environmental protection and effective adaptation to climate change; (vii) enhancing national defense and security; (viii) proactively and actively boost international integration and improving Viet Nam’s international standing and prestige, and others.

Specific goals

The annual GDP growth is projected to average 6.5-7% in the 2021-2025 period while the GDP per capital is estimated to reach US$4,700-US$5,000 by 2025.

The ratio of processing and manufacturing to GDP is expected to increase to more than 25% and the GDP share of the digital economy would rise to 20%.

The rate of contribution of total factor productivity (TFP) to growth is expected to reach 45%.

The rates of urbanization and budget overspending to GDP would increase to 45% and 3.7%, respectively.

To realize the above objectives and goals, the plan figures out 12 major solutions, including focusing on the realization of the dual goal of COVID-19 containment and economic recovery; refining institutions for development; accelerating the restructuring of the economy in combination with transforming growth model, improving productivity, quality, effectiveness and competitiveness, advancing digital economy and digital society; strengthening mobilization, allocation and utilization of resources, innovating mechanisms on the allocation of investment resources among others.

Source: VCCI