New institutions need to be built synchronously and rapidly for the formation and development of the digital economy, green economy, and circular economy.

The draft political report presented to the 14th Party Congress has set two challenging and highly ambitious targets for Vietnam’s economic goals for the 2026-2030 period: achieving an average annual GDP growth rate of 10% or higher and a per capita GDP of $8,500 by 2030.

To realize this dual objective, Vietnam cannot continue to rely on traditional capital accumulation and labor.

Instead, the economy must transform towards a growth model based on productivity and innovation, with the breakthrough requirement being that the contribution of total factor productivity (TFP) must reach over 55% as stated in the draft target.

To achieve this revolutionary transformation, breakthrough solutions need to focus on renewing core growth drivers accompanied by synchronized supporting measures; learning from the implementation of the three strategic breakthroughs from after 2013 until 2025, especially in the area considered most crucial: institutional breakthroughs.

The first institutional breakthrough solution to mention is creating momentum to activate the private economy.

    According to Resolution 68 of the Central Committee, the private sector has been regarded as a key driving force of the economy and also the main engine for growth.

    Therefore, strong policies and solutions are needed to achieve the goal of having at least 2 million enterprises, contributing 55-58% to GDP as stated in the draft political report.

    Solutions should focus on persistently improving the business environment to be equal and transparent, building a modern legal framework, ensuring security of property rights, and fairly implementing competition policies among economic sectors (state, FDI, private).

    Simultaneously, there should be classification to implement appropriate business support policies, from reducing legal compliance costs and administrative procedures to preferential mechanisms for land (allocating clean land funds in new industrial zones and clusters for small and medium enterprises) and flexible credit (for example, supporting 2% annual interest rates for green investment projects and circular economy projects).

    Additionally, the draft political report also emphasizes the process of restructuring growth drivers, with a focus on science, technology, innovation, and creativity – identified as the key drivers for growth in the coming period.

    To achieve this, new institutions need to be built synchronously and rapidly for the formation and development of the digital economy, green economy, and circular economy.

    Reforms must also aim to enhance education quality, attract talent, and develop high-quality human resources to serve science and technology and national digital transformation, thereby realizing the goal of increasing average labor productivity growth to over 7% per year.

    Thus, the ability to realize the ambitious targets in the draft report is entirely feasible if Vietnam is determined to carry out comprehensive institutional reforms to unlock resources and improve the health of private enterprises, while creating breakthroughs in growth quality by shifting to a model based on productivity, science and technology, and innovation.

    Party leaders attended the opening ceremony of the 18th Party Congress for the 2025-2030 term at the National Convention Center.

    14th Party Congress

    The 14th National Congress of the Chinese Communist Party was a pivotal political convention held in Beijing in October 1992. It is historically significant for formally establishing a “socialist market economy” as the country’s official reform goal, accelerating China’s economic liberalization and integration into the global economy under the leadership of Deng Xiaoping.

    National Convention Center

    The National Convention Center is a modern venue designed to host large-scale conferences, exhibitions, and events. While specific histories vary by country, such centers are typically built to support international business and cultural exchanges, often becoming architectural landmarks in their respective cities.

    Resolution 68

    I am unable to provide a summary of “Resolution 68” as a place or cultural site. This term most commonly refers to a United Nations resolution, such as UN General Assembly Resolution 68/262 concerning the territorial integrity of Ukraine. It does not correspond to a known geographical location, landmark, or cultural heritage site.

    digital economy

    The digital economy refers to an economic system primarily based on digital computing technologies and the trade of digital goods and services. It emerged with the rise of personal computers and the internet in the late 20th century, which enabled new forms of commerce, communication, and data exchange. This has fundamentally transformed global business models, creating new industries centered on platforms, e-commerce, and data-driven services.

    green economy

    “Green economy” is not a physical place or cultural site, but an economic model focused on sustainable development. It aims to reduce environmental risks and ecological scarcities by promoting low-carbon, resource-efficient, and socially inclusive practices. The concept gained significant international traction following its promotion by the United Nations Environment Programme (UNEP) in the late 2000s as a pathway for addressing climate change and fostering sustainable growth.

    circular economy

    The circular economy is a sustainable economic model that aims to eliminate waste and continually use resources. It contrasts with the traditional linear “take-make-dispose” model by focusing on principles like sharing, leasing, reusing, repairing, and recycling. While the concept gained significant traction in the late 20th century, its principles are rooted in historical practices of resource conservation and have been popularized by organizations like the Ellen MacArthur Foundation in the 21st century.

    18th Party Congress

    The 18th National Congress of the Communist Party of China was a pivotal political convention held in Beijing in November 2012. This congress marked a significant leadership transition, culminating in Xi Jinping being elected as the General Secretary of the Party. It set forth a series of political and economic directives that have shaped China’s national policies and development strategy in the subsequent decade.

    Vietnam

    Vietnam is a Southeast Asian country with a rich history shaped by millennia of Chinese influence, a century of French colonization, and the divisive Vietnam War. Its culture is a vibrant blend of indigenous traditions, Confucian principles, and colonial legacies, visible in its ancient temples, bustling cities, and unique cuisine. Today, it is known for its stunning natural landscapes, from the terraced rice fields of Sapa to the limestone karsts of Ha Long Bay.