Hanoi (VNA) – Therewould be no success if no effort is made to renovate the mindset, activelybuild economic development methods, and reform mechanisms and policies, saidMinister of Planning and Investment Nguyen Chi Dung.

Addressing the opening ceremony ofthe Vietnam Reform and Development Forum (VRDF) 2019 under the theme “Vietnam:Aspiration for prosperity – Priorities and Actions” in Hanoi on September 19, Dungsaid that while realising the aspiration for prosperity, overcoming the “middleincome trap” alone is a considerable challenge for many developing countries,including Vietnam.

He noted that in line with the economicdevelopment trend of the global economy, Vietnam has renovated the economy and appliedachievements of the Forth Industrial Revolution in various areas.

In 2019, the country leaped threepositions in the Global Innovation Index (GII) from 2018 to rank 42 out of 129countries, first among 26 countries with low middle income and third amongASEAN countries after Singapore and Malaysia, Dung said.

According to the minister, in the2011-2018 period, Vietnam recorded an annual average gross domestic product(GDP) growth rate of over 6.2 percent. By the end of 2018, Vietnam’s GDP scalevalued at over 250 billion USD, with per capita GDP reaching 2,600 USD.

Vietnam has become an attractivedestination for foreign investors, with investment in the 2011-2018 period hittingmore than 200 billion USD, he said.

However, Dung pointed out thatthe Vietnamese economy’s labour productivity and competitiveness remain low.

The minister said that in orderto realise the aspiration for prosperity, Vietnam has built a draft strategy onsocio-economic development for the 2021-2030 period which emphasises the needto complete the process of turning the economy into a market economy with modernorientations and integration in line with international practice, whileperfecting the legal framework for new business forms and digital economy.

Meanwhile, World Bank Country Director in Vietnam Ousmane Dionesaid that escalating trade tensions and technological changes are affectingVietnam, adding that the country’s economic model of the country is also facingdomestic challenges, including the aging population degradation in naturalresources, modest human resources and risk of reduced productivity.

He stressed that breakthrough innovation is necessary forthe country to grasp opportunities and mange risks in the future, adding that awell-designed socio-economic development strategy is also significant forVietnam.

Sharing Malaysia’s experience to escape the middle incometrap, K. Yogeesvara, former Deputy Minister of Plantation Industries andCommodities of Malaysia, said that during the period to rise into a high-incomecountry, Malaysia faced challenges in the gap among regions in terms of incomeand quality of human resources.

He held that adequate investment in human resourcesdevelopment and the people will help get rid of the trap, along with balancingdevelopment among production and service sectors, and coping with rich-poorinequality.

Cao Viet Sinh, a senior economist, held that market economymechanism has been incomprehensive and failed to meet requirements to promotethe modern and integrated market economy.

David Dollar, a senior expert from the US-based BrookingsInstitute, held that the private sector of Vietnam has become backward due toweak access to credit and land. Vietnam should clarify areas for the State-ownedsector and those for the private sector, thus creating a fair playground forboth sides, he added.

Participants at the event recommended that Vietnam should makethedomestic private sector the backbone of the economy, while optimising renewableenergy resources and targeting green production.

The country should focus on improving productivity,developing technology and artificial intelligence application, reforming theeconomic structure and completing the State system organization, theysuggested./.