LookAtVietnam – A strategic plan reviewed by the Communist Party Central Committee envisions that Vietnam’s per capita income could pass $3000 by 2020. Nguyen Ba An, vice director of the Institute for Development Strategy, talks more about the plan.

Mr. Nguyen Ba An

The Central Committee of the Vietnamese Communist Party met in late June to begin planning for the Party’s 11^th Congress, scheduled for January 2011. Reports of the policy discussions at the Central Committee meeting are beginning to seep out into the public domain. Here, Nguyen Ba An, vice director of the Institute for Development Strategy (an arm of the Ministry of Planning and Investment), talks to Tuoi Tre Daily about the features of the draft ten year development strategy.

Tuoi Tre: What are the prime goals of the social-economic development strategy for 2010-2020?

Vice Director An: Vietnam has implemented social-economic development strategies for 1991-2000 and 2001-2010. For the next ten years, we proposed that the general goal be continuing to promote industrialization, modernization and sustainable development, aiming to turn Vietnam into a medium-level industrialized country by 2020.

The world has criteria for medium-level industrialized countries and the draft strategy’s target is based on these criteria. It is forecast that Vietnam will not achieve all criteria, for example the urbanization ratio but the country is expected to achieve some other criteria very robustly, for example the human development index (HDI).

From our low point of departure, Vietnam must aim to grow fast. Some argued that we should put more emphasis on sustainable growth but if we don’t maintain a high growth rate, it will be very difficult for us to solve social problems. So we think that there is a strategic necessity for a growth target that is both rapid and sustainable.

The draft strategy suggested annual gross domestic product (GDP) growth of 7-8 percent in the next ten years.

TT: We have grown the economy at an annual GDP growth of 7-8 percent but it is still growth in a broad direction. What do you think about that?

An: Lee Kuan Yew, the retired Singaporean Prime Minister, said that Vietnam will grow fast if it has a good human resource development strategy. In the wake of the recent global crises, many countries, especially developed countries, are strongly restructuring their economies. It is forecast that in the near future, along with that restructuring process, there will be revolutionary science and technology developments, opening many opportunities for every country.

“Ministries and local governments can build individual development strategies for themselves, but this is the national strategy so we have to make real choices. Our strategy should not turn into something shaped like a jack-fruit, heading in every direction at once,” said Nguyen Ba An.

A natural resource-based economy will face limits eventually, so policies have to focus on the fields where we have comparative advantages. Saving energy, conserving natural resources and developing the competitive strength of the workforce are compulsory requirements for countries that want to develop fast and sustainably. Growth rate and per capita income are significant targets, but the quality of people’s spiritual and material life is most important.

TT: What fields are selected for break-throughs in this draft strategy?

An: The draft strategy shows many development orientations, within which we proposed three breakthrough directions.

Firstly, perfecting the structure of a market economy with a socialist direction, strongly liberating the forces of production, moblising and using all resources well.

The first direction covers a very broad issue. We suggested two key tasks: creating a favourable investment environment and administrative reforms. If these tasks are well performed, long-standing constraints on Vietnam’s social-economic development will be removed.

Secondly, developing human resources to meet the country’s development needs, concentrating on education and training reforms.

Thirdly, concentrating our resources on building modern infrastructure, particularly transport facilities and infrastructure of big cities.

Lots of other suggestions were made about key directions for development, such as science and technology, industry and energy. These fields are all important but I think we need to focus on key fields that will move the entire social-economic situation. The three areas I mentioned are the “bottle-necks” in the country’s growth at present.

Ministries and local governments can build individual development strategies for themselves, but this is the national strategy so we have to make real choices. Our strategy should not turn into something shaped like a jack-fruit, heading in every direction at once.

VietNamNet/TT