Vietnam urged to readjust development strategy in post-pandemic period

While the Covid-19 pandemic is transforming the world into a totally different one, Vietnam should readjust its development strategy to make full use of a new economic order, according to economist Tran Dinh Thien, member of the Economic Advisory Team of the Prime Minister.

Economist Tran Dinh Thien speaks at a talk in Hanoi on May 15. Photo: Ngoc Thuy.

As Vietnam is currently focusing on economic recovery, especially on helping the business community to recover, the question is how relief programs should be implemented in the most efficient way, Thien raised the issue at a talk on May 15.

In this regard, the economist said the government should prioritize the creation of a new system of enterprises, instead of reviving the old one, so that they have capabilities to cope with a new situation.

“This would help the economy better deal with a new structure of trading activities and global value chains,” he added.

According to Thien, this is particularly important, given Vietnamese economy’s high dependence on the global economy.

“Even when Vietnam could contain the Covid-19 pandemic, its economy could only fully recover once the world’s economy is able to do so,” Thien, a former director of the Vietnam Institute of Economics, said.

Meanwhile, with a limited state budget, Vietnam should mobilize social resources to support startups and large-scale enterprises, those considered capable of driving the economy forward.

“The country would remain the same if we only want to save the old enterprises, while the pandemic is presenting an opportunity for us to change the economy’s bloodline. The ultimate goal should not only be the survival of enterprises, but also to make sure that they are able to thrive afterwards.”

Thien suggested the government should allocate a significant part of financial support for the Ministry of Information and Communications and universities in setting up startup incubators.

While this process can take up from three to five years to yield results, this moment could be the perfect stage to begin, Thien asserted.

“Vietnam should make use of this current crisis to free itself from the old mindset and ensure the adaptation to new requirements,” Thien added.