Developing Vietnam’s socialist-oriented goal and model (Part 2)

The economy serves as the foundation and backbone of the nation and the regime; it establishes the country’s position, strength, and reputation in the context of globalisation. All economic sectors and forms of ownership are equal components that together constitute the unified economy of our country.

PART 2

ECONOMIC DEVELOPMENT IN ASSOCIATION WITH SCIENCE AND TECHNOLOGY

Promoting the private economic sector as an important driving force

A socialist-oriented market economy cannot grow vigorously and sustainably if it is unbalanced or reliant on any single industry. Alongside developing the state-owned sector as the national foundation, it’s equally necessary to foster the private economic sector and other economic components to their full potential.

The private sector in Dong Nai has been gradually developing in both scale and quality. In the photo, workers at Cao Nguyen Binh Phuoc Import-Export Co., Ltd., Thuan Loi commune. Photo: Anh Ngoc

Over the past four decades, particularly in the last five years, the private economic sector has emerged as an important driving force in the socialist-oriented market economy. It has expanded in both quality and scale, continuing to be a key contributor to Vietnam’s economic growth. Its role is increasingly evident: maintaining robust growth rates, accounting for 42–43% of GDP, attracting approximately 85% of the national workforce, and significantly mobilising social resources for investment and production. The sector has helped drive economic restructuring, increase state budget revenue, improve people’s livelihoods, and ensure social welfare. Notably, it has played a central role in advancing industrialization and modernization, transforming the country’s outlook, and enhancing Vietnam's standing on the international stage, with many competitive brands established both regionally and globally.

In the current context, Party General Secretary To Lam affirmed: “Developing the private economic sector is a lever for building a prosperous Vietnam.” This means there is no alternative but to nurture and fully develop the private economic sector to match its inherent role and strength, so as to enhance the overall strength of the national socialist-oriented market economy, which is of strategic importance. It serves as a crucial driving force for economic growth and as the core force in developing a complete and modern socialist-oriented market economy, which we are persistently striving to advance. This must be regarded as a strategic political viewpoint and policy decision.

In terms of perception, it is necessary to eliminate all lingering invisible prejudices that are unreasonable and unnecessary; and to ensure equality and transparency across all economic sectors and forms of ownership, regardless of scale. In practice, the institutional framework must be reviewed and improved at a faster pace, while dismantling both visible and invisible barriers in psychology, law, and society to create a fair and enabling environment for investment and business. This includes encouraging the transformation of household businesses into enterprises, and providing guidance and support in technology, finance, land access, green transition, and digital transformation. At the same time, substantive reforms to the investment and business environment must be accompanied by timely and effective support in consultancy, market information, and business protection. For their part, private enterprises and household businesses should actively innovate, strengthen management capacity, and demonstrate the courage to think big, act boldly, innovate methodically, and grow ambitiously – living up to the title of Vietnamese entrepreneurs. This is the right direction for development.

The fundamental question remains: how fast and how far can the private sector advance, given the institutional framework and growth drivers? Ultimately, it must contribute to building the “Vietnamese economic brand” in the regional and global arena.

Developing science and technology, especially high technology

Globally, in 2013 the world’s population stood at 7.1 billion, with just over 850 million active web servers and a global GDP of 75 trillion USD, alongside 7 billion networked devices worldwide. By 2025, it is projected that more than 100 billion connected devices will serve 8 billion people. This demonstrates the exponential and vast scale of technological development worldwide.

Party General Secretary To Lam emphasised: “We must initiate and implement a digital transformation revolution. Strategic technologies, digital transition, and green transition must be accelerated, with science, technology, and innovation serving as the key drivers of development.”

The realities of reform once again affirm that rapid, strong, and sustainable development cannot be achieved without science and technology as a cultural foundation. No progress or breakthrough worthy of expectation can be made without bold innovation in this crucial area. Over the past two decades, global advances have posed a pressing challenge: leaders shaping the future must go beyond their own expectations in the opportunities and challenges of global connectivity. Simply meeting expectations places one at the management level, which would mean falling behind in the worldwide interconnection of the Internet of Things (IoT). Therefore, Vietnam must be willing to take risks, even embrace potential failures, and be ready to surpass all expectations in both scale and speed of development in order to rise to a regional standing and take the initiative in global competition. We cannot remain on the sidelines, nor hesitate, waver, or delay joining this global market if we wish to avoid falling behind."

In other words, breakthroughs are indispensable, paving a direct path to the development of science and technology, with high technology taking precedence. This serves as the key to rapid and deep integration into the modern global economy in the context of globalisation and regional integration. It is also the shortest route to repositioning the national economy on the world stage, while acting as an important driving force to further develop and perfect the socialist-oriented market economy. Party General Secretary To Lam affirmed: “Digital transformation is not merely the application of digital technologies in socio-economic activities, but rather the establishment of a new, advanced, and modern mode of production – a digital mode of production. In this mode, the productive forces are characterized by the harmonious combination of humans and artificial intelligence; data becomes a resource and an essential means of production. At the same time, relations of production also undergo profound changes, particularly in the forms of ownership and distribution of digital means of production.”

“…The synchronous and comprehensive development of science and technology aims to promote the country's economic, cultural, and social progress, while also improving people's living standards. Synchronisation and breakthroughs in socio-economic infrastructure development must be given the highest priority.”

Party General Secretary TO LAM

Moreover, global development trends and the development needs of our country are urging industries – and the national economy in a broader context – can only achieve sustainable growth by advancing the Internet of Things (IoT) and digital technologies. In a world of constant change, marked by groundbreaking scientific and technological achievements, many emerging sectors are drawing worldwide interest and investment, including the digital economy, green economy, circular economy, semiconductors, and artificial intelligence (AI). Vietnam must seize the opportunities in the IoT and digital industries as levers for breakthrough and accelerated growth. These are decisive not only for the scale and pace of development, but also for the very nature of socio-economic progress. This is the opportunity for the country to truly “take off”.

Once again, if Vietnam seeks rapid and robust development, there is no better path than developing science and technology; especially science - high technology first and foremost, is a principal driving force for strong and fast-paced socio-economic growth.

Dr. Nhi Le, former Deputy Editor-in-Chief of Communist Review

Translated by Quynh Nhu - Thu Ha

(to be continued)