Supply chain disruptions, from the Covid-19 pandemic to current conflict hotspots, have exposed the vulnerabilities of the world's dependent economies. In this context, building a strategically self-reliant economy and mastering key supply chains is a development choice that will help Viet Nam stand firm against global fluctuations.

Supply chain disruption

The conflict in the Middle East between the US and Israel and Iran in late February and early March is pushing the world to the brink of instability. The Strait of Hormuz has become a choke point as a large volume of global oil passes through it daily. As the conflict escalates, oil prices rise, leading to increased freight costs.

This is not the first time global supply chains have been impacted. In 2020, the Covid-19 pandemic paralyzed seaports worldwide, led to widespread factory closures, and caused container freight rates to increase exponentially. Economies dependent on imports and exports faced significant difficulties.

The consequences of supply chain disruptions spread like a domino effect. Semiconductor chip shortages cost the global automotive industry hundreds of billions of dollars in revenue. Container shortages drove up consumer prices, pushing inflation to decades-high levels. Central banks were forced to aggressively raise interest rates, stifling economic growth.

Weaker economies are hit hardest. Countries dependent on energy imports face double-digit inflation, budget deficits, and the potential for a sovereign debt crisis. Events ranging from pandemics to armed conflicts demonstrate that, in a deeply globalized economy, no country can isolate itself. But the degree of vulnerability depends on strategic self-reliance. Countries with energy reserves, diversified supply sources, and mastery of core technologies will weather crises better than those heavily dependent on external sources.

Building a strategically independent and self-reliant economy linked to integration.

Looking back over the past period, it is evident that, in the face of every global upheaval, the Party and State of Viet Nam have always devised flexible and timely response solutions, ensuring the economy remains stable and maintains its growth momentum.

With a long-term vision, the Party has identified building a strategically self-reliant and self-sufficient economy, coupled with deep international integration, as the cornerstone of the new growth model. This is an inevitable choice to ensure the economy is resilient enough to withstand external fluctuations.

The Resolution of the 14th National Congress of the Party clearly stated that the world is undergoing epochal changes, creating many advantages, opportunities, and intertwined difficulties and challenges; domestically, revolutionary strategic decisions are being implemented, raising many new issues and demanding new and very high requirements; at the same time, this is also a new turning point, a new historical opportunity for the cause of building and developing the country and defending the Fatherland in the era of national progress.

From then on, our Party set forth the goals of maintaining a peaceful and stable environment; developing the country rapidly and sustainably and firmly protecting the Fatherland; comprehensively improving and enhancing the people's lives; achieving strategic autonomy, self-reliance, self-confidence, and strong progress in the new era of the nation.

Recently, General Secretary To Lam held a working session with the Central Committee's Policy and Strategy Department on the drafting of a Central Committee Resolution on strategic solutions to promote economic growth of 10% or more, linked to establishing a new growth model. One of the important contents of the draft Resolution is ensuring the requirements of building a strategically self-reliant and self-sufficient economy, linked to deep, comprehensive, and effective international integration; closely and synchronously integrated with the processes of national governance transformation, digital transformation, green transformation, energy transformation, structural transformation, and improving the quality of human resources.

During the meeting, General Secretary To Lam emphasized that this Resolution must be the "overall blueprint" for Viet Nam's economic growth model of 10% or more by 2045. This is a strategic commitment, a historic choice to realize the country's development aspirations. However, that growth must be stable, high-quality, inclusive, green, and self-reliant.

Clearly, building a self-reliant, independent, and strong economy is the guiding and consistent viewpoint of our Party and State, as reflected in many important resolutions issued recently.

Resolution 79-NQ/TW of the Politburo on the development of the state-owned economy clearly defines the vision for 2045: The state-owned economy will become a solid foundation ensuring strategic autonomy, self-reliance, and comprehensive competitiveness of the national economy; modern, transparent, efficient governance with high competitiveness and deep integration into the global economy; providing high-quality public services; affirming the superiority of socialism; and together with other economic sectors, realizing the goal of becoming a developed, high-income country by 2045.

In the energy sector, Resolution 70-NQ/TW on ensuring national energy security until 2030, with a vision to 2045, highlighted the guiding principle: Applying science, technology, innovation, and digital transformation to promote rapid and sustainable development of the energy sector; gradually mastering modern technologies, including atomic energy technology, and moving towards self-sufficiency in the production of most energy equipment to serve domestic needs and for export, both in terms of technology and equipment.

Resolution 57-NQ/TW on breakthroughs in national science, technology, innovation, and digital transformation clearly expresses the viewpoint: Rapid and sustainable development, gradually achieving technological self-reliance, especially in strategic technologies; prioritizing national resources for investment in science, technology, innovation, and digital transformation. Maximizing Viet Nam's potential and intellect while rapidly absorbing, mastering, and applying advanced scientific and technological achievements from around the world; promoting applied research, focusing on basic research, and moving towards technological self-reliance and competitiveness in areas where Viet Nam has needs, potential, and advantages.

The resolutions have been implemented systematically, synchronously, and actively. The full effectiveness of these resolutions will take time, but it can be affirmed that this is the correct path set forth by our Party in the current period.

Source: Viet Nam Industry and Trade News

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