Jan 25, 2019 / 15:02

Vietnam looks to internal strengths to weather global economic slowdown: PM

The Hanoitimes - The middle class that makes up 13.5% of the population and desire for prosperity from young people under the age of 35, which account for 60% of the population, are the backbone for Vietnam’s future development.

Vietnam would tap into internal growth engines to maintain its growth momentum against a potential global economic slowdown, according to Prime Minister Nguyen Xuan Phuc. 
 
Prime Minister Nguyen Xuan Phuc and President of the WEF
Prime Minister Nguyen Xuan Phuc (middle) and President of the WEF Borge Brende. Source: VNA. 
Phuc made the statement in response to a question from Borge Brende, president of the World Economic Forum (WEF), regarding risks from current trade wars to Vietnam’s economy at a dialogue themed “Vietnam and the World” held on January 24 within the framework of the 49th annual WEF 2019 meeting in Davos. 

Firstly, Vietnam would need to realize the advantage on the 100-million population with growing disposable income. The country's middle class that makes up 13.5% of its popultation and desire for prosperity from young people under the age of 35, which account for 60% of the population, are the backbone. 

Secondly, the ongoing institutional reform continues to create favorable conditions for growth, Phuc said, adding a facilitating state would encourage greater dynamism and creativity in each citizen, in turn promoting high entrepreneurship in the context of the Fourth Industrial Revolution. 

Thirdly, Phuc pointed to the rapid growth of the private sector. By 2020, Vietnam is projected to have 1 million operational companies, including large scale corporations capable of competing on global scale in fields such as manufacturing, telecommunications, aviation, banking – finance, agriculture, and tourism, among others. 

Moreover, the government would encourage a better linkage between the FDI domestic sectors for sustainable development of the local business community. 

Fourthly, Vietnam could rely on a new growth engine, based on the development of digital economy and innovative start-ups. Phuc stressed that Vietnam stands ready to accept new things, new technologies coming from the Industry 4.0.

And the fifth woul be Vietnam’s effort in global integration. 

The PM expected Vietnam to maintain a rapid and sustainable growth based on stable socio-economic conditions; economic restructuring, particularly in fields of agriculture, tourism and IT; improving the legal system in adaption to international practices, including the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP); and enhancing national competitiveness in new circumstances. 

More importantly, Phuc ruled out the possibility of trading off between growth and sustainability, while focusing on developing quality human resources in preparation for the Industry 4.0. This is particularly important as Vietnam’s population is ageing quickly.