Prime Minister Nguyen Xuan Phuc (standing) at the Viet
Nam Reform and Development Forum 2019 in Ha Noi on September 19, 2019. Photo:
The Government chief stressed the point while
addressing the Viet Nam Reform and Development Forum 2019 in Ha Noi on
From a war-ravaged country, Viet Nam has made it
among 45 largest economies in the world with GDP totalling over US$250
billion last year.
Viet Nam has been an attractive destination for
foreign investors as evidenced by rapid growth of foreign investment
inflows, which reached US$ 200 billion between 2011 and 2018.
Poverty reduction was still very high, standing
above 53% in 1992 or nearly 20 years after the national liberation and
reunification, however, thanks to the introduction of the reform policy in
1986, the poverty rate fell down to 5.23% in 2018, making it one of the
great poverty reduction stories around the world.
According to Prime Minister Phuc, the middle income
accounts for 15% of the total population and is rising fast.
Last year, the country’s Global Innovation Index
ranking jumped three places to 42nd among 129 countries, ranking first among
26 low-middle-income countries, and ranking third in the ASEAN region, after
Singapore and Malaysia.
The Government chief, however, pointed out the spate
of the existing challenges that must be frankly discussed and resolved,
including weak capacity to respond to external impacts and to access to
digital economy, slowdown GDP growth.
Other challenges are weak competitiveness, low
productivity, and incomplete economic institutions.
According to World Bank Country Director Ousmane
Dione, scientific and technical achievements play an important role for Viet
Nam to overcome challenges like the very fast population ageing, poorly
performing investments, unskilled human resources, and the unbridged
technical gap separating it from the developed world.
Thereby, Dione highlighted that finding a new engine
for growth based on innovation, and improving productivity, and reforming
the market economy are all needed for a breakthrough in Viet Nam’s