Productivity growth key to Vietnam’s high-income goal: World Bank

A productivity-driven development model will be key for Vietnam to achieve its ambition of becoming a high-income economy by 2045, a report released by the World Bank on May 27 has suggested.

The report noted that the model, which combines innovation with the balanced development and allocation of private, public, human and natural resources, must be positioned front and centre in Vietnam’s development strategy over the next decade.

According to Ousmane Dione, World Bank chief in Vietnam, the country is one of the greatest recent development success stories but is now at a turning point where some of its traditional drivers of growth are gradually weakening.

In the report entitled “Vibrant Vietnam: Forging the Foundation of a High-Income Economy”, the World Bank recommends several policy options to help Vietnam grow not only faster but also better.

The World Bank states that Vietnam should encourage competition and ease firm entry and exit so that resources will go to the most innovative and productive firms while it also needs to improve both the efficiency and sustainability of infrastructure services.

Furthermore, Vietnam needs to promote university and vocational-level technical skills which are becoming even more important for a productivity-led growth model.

Finally, the World Bank suggests that Vietnam should manage its renewable natural resources more effectively and impose stricter pollution regulations in order to create a green economy.

Source: Nhan Dan Online