Socio economic development

The Party and State always pay special attention to socio-economic development and defence and security assurance in the ethnic minority and mountainous areas. The Party’s and State’s important decisions have been a strong driving force in boosting the socio-economic development in ethnic minority and mountainous areas, contributing to fulfilling the set targets during 2016-2020 period.

The main results achieved in socio-economic development and defence and security assurance in ethnic minority and northern areas during the 2016-2020 period were the synchronous investment in the economic and technical infrastructure in difficult areas; and the impressive achievements in the work of hunger eradication and poverty reduction highly appreciated by international friends. In addition, the programme of building new-style rural area has achieved encouraging initial results. The education and vocational training in ethnic minority and mountainous areas has increasingly developed in all terms of scale, connectivity and quality. The healthcare for people has been focused in terms of networking, equipment and staff, so the quality of medical examination and treatment has seen positive changes. The preservation and promotion of good cultural values of ethnic minority groups has achieved clearer results. The planning, education and arrangement of the contingent of ethnic minority cadres and civil servants have been boosted. Security and defence in these areas has been strengthened; meanwhile, political security and social order and safety have been maintained.

From the reality during 2016-2020, the following lessons have been drawn:

Firstly, it is crucial to be steadfast and persistent in the implementation of the Party’s and State’s consistent policies that all groups are equal and should unite, respect and help together to develop; taking care of ethnic affairs is the responsibility of the entire Party, people and army as well as of agencies at all levels and the whole political system.

Secondly, it is essential to enhance the propaganda and communications in ethnic minority groups and mountainous areas to promptly convey the Party’s guidelines and State’s policies and laws to them. In addition, the investment resources for socio-economic development should be strengthened towards improving livelihoods and sustainable poverty reduction. The authorities need to pay much attention to consolidating and maintaining the ethnic minority people’s trust in the Party and State.

Thirdly, the training and effective arrangement of ethnic minority cadres and civil servants as well as the development of Party members and the cause of building Party and political system at grassroots levels should be enhanced. It is necessary to uphold the role of reputable people among ethnic minorities.

The general direction and goals on ethnic affairs and socio-economic development in ethnic minority groups and mountainous areas during 2021-2025, which was highlighted in the draft Political Report, received high agreement. The agencies and units from the central to local and grassroots levels will continue to innovate their thinking and make high determination, great efforts and drastic actions to implement synchronously and effectively eight groups of major missions and solutions:

1. Consistently and persistently implementing the Party’s views and guidelines; the 9th Party Central Committee’s Resolution No.24-NQ/TW ,dated on March 12, 2003, on ethnic work in the new situation and the 12th Politburo’s Conclusion No.65-KL/TW, dated on October 30, 2018, on continuing to implement the Resolution No.24-NQ/TW. Accordingly, the great unity among ethnic groups continues to be a strategic position; a long-term and an urgent task; and the responsibility of the whole Party, people, army and political system.

2. Continuing to perfect and develop the policies related to socio-economic development in ethnic minority groups and mountainous areas in a comprehensive and sustainable manner; promoting the potential and advantages; and sparking the spirit of self-reliance and the aspiration to overcome difficulties among ethnic minority people.

3. Improving the efficiency of programmes to expand preferential credit capital for projects that create livelihoods for people; diversifying and socialising the resources, of which State resources playing an important and decisive role in mobilising other resources.

4. Stepping up economic restructuring towards commodity production in line with the customs of each minority group. Developing specialised farming areas of crops and animals with high quality. Focusing on developing ecotourism in association with preservation and promotion of cultural values of ethnic minority groups.

5. Synchronously developing social and cultural fields in the ethnic minority groups and mountainous areas.

6. Building all-people national defence and security postures in association with people’s hearts; resolutely not allowing “hot spots” and “complicated spots” on security and order, especially in strategic areas of the northwest, central highlands, southwest and central coastal region.

7. Paying strong attention to training and developing ethnic minority Party members, notably in key, difficult and border areas. Honouring and encouraging reputable people, businessmen and scientists who have made great contributions to the cause of national construction and defence.

8. Highly concentrating on the successful implementation of the national target programme for socio-economic development in ethnic minority and mountainous areas during 2021-2030 period. Renovating organisational models of apparatus, functions and tasks of State management agencies on ethnic affairs, meeting requirements and missions in the new situation.

Q: What are some important results of socio-economic development in Tay Ninh Province, a border area facing numerous difficulties, in 2020 and the recent period?

A: The COVID-19 pandemic has not only affected the implementation of tasks in 2020 but also the development during the 2016-2020 period. In order to overcome difficulties and complete tasks, the provincial authorities clearly defined the potentials and advantages of the locality to synchronously implement four breakthrough strategic programme on the development of transport infrastructure; developed hi-tech agriculture; and boosted tourism, administrative reform and information technology application.

In 2020, Tay Ninh’s economy continued to grow with a GRDP growth rate of 3.98% and the labour productivity and quality of the economy doubled compared to the previous period. The province’s average growth increased by 7.2% during 2016-2020 period, higher than the rate of the whole country. Its GRDP per capita reached over US$3.1 in 2020. The economic structure has changed positively, with the proportion of construction and services sectors accounting for more than 75% of the GRDP.The local investment capital for social development increased by 1.5% and reached 40.1% of GRDP, the highest rate ever. Tay Ninh’s State budget revenue exceeded VND10 trillion last year, reaching 114% of the estimate assigned by the central government. The investment environment has been improved strongly with the Provincial Competitiveness Index (PCI) ranking 15th out of 63 provinces and cities and 3rd among the 8 provinces and cities in the southeast region in 2019.

The province had attracted 330 foreign-invested projects with total capital of US$7.5 billion and 565 domestic investment projects with total registered capital of nearly VND80 trillion by 2020. Its export turnover reached over US$4 billion, a year-on-year increase of 7%. The locality has not 6,051 enterprises and 141 cooperatives.

Through regional cooperation and linkage from the tourism linkage programme with other provinces in the southeast region and Ho Chi Minh City, we have more diverse tourist products and gradually formed and connected the value chains. The local tourism sector agreed to boost the investment to develop the Ba Den Mountain national tourist area into a focal point for the connection and spread of local and regional tourism. The province’s revenue from tourism has increased by 15.1% per year and the number of visitors to the locality has increased 15% per year.

The urbanisation rate of Tay Ninh increased from 22.2% in 2015 to 41.8% in 2020. Its poverty rate was reduced to less than 1%. The political security in the province and on the border has been maintained.

Q: What experiences and solutions need to be implemented to maintain the sustainable growth in the coming time?

A: It is crucial to focus on thoroughly grasping and effectively implementing the Resolution of the 13th National Party Congress and the Resolution of the 11th Party Congress of the provincial Party Committee during the 2020-2025 tenure with high political determination right from the beginning of the year and tenure. Especially, the functional agencies determine to maintain the achievements in the fight against the COVID-19 epidemic as well as successfully implementing the dual goal of preventing and controlling the pandemic while restoring socio-economic development.

Tay Ninh will continue to boost the implementation of four strategic breakthroughs; and will enhance economic restructuring and active linkage to improve the quality and efficiency of regional linkage programme. The potentials and advantages of the locality will be effectively upheld, and the mobilisation of resources will be promoted to create a new driving force for more rapid and sustainable socio-economic development. The locality will maintain the pace of growth; increase the scale, capacity and competitiveness of the economy; improve labour productivity; synchronously develop traffic infrastructure, focusing on completing major transport projects; and form an urban and industrial corridor along the Ho Chi Minh City – Moc Bai Expressway.

The relevant agencies will propose a new driving force to promote the strong development of the Moc Bai border-gate economic zone as well as gradually developing a digital economy, society and smart city. The province will continue to accelerate administrative reform in association with strongly improving the investment environment. The local authorities will pay great attention to the realisation of social progress and equity; the building of a healthy and civilised cultural and social environment; and the assurance of social security, striving to beamong provinces and cities leading in the reduction of poor households. In addition, the province will make efforts to improve both material and spiritual lives of people; effectively manage and use the natural resources; and protect the environment, biodiversity and ecosystem. The people’s mastery right, the strength of the great unity bloc and social consensus will be promoted widely.

Despite facing unprecedented difficulties and challenges due to the COVID-19 pandemic, along with the negative impacts of climate change, last year Vietnam still maintained positive economic growth in the context of a severe global economic recession and overall negative global growth of 4%. Moreover, the country still realised quite comprehensively the goals set out not only for 2020 but also for the 2016-2020 period with many new outstanding efforts.

Bright spot in global growth

Vietnam’s great success in a turbulent year was fulfilling a “dual goal” of both effectively controlling the epidemic and maintaining economic growth. Minister of Planning and Investment Nguyen Chi Dung said that 2020 is to be considered a year of great difficulties and challenges for all countries, including Vietnam, due to COVID-19. However, with drastic and effective solutions in realising the above-mentioned dual goal, Vietnam still achieved positive results while maintaining positive economic growth.

2020 was also the last year in the national socio-economic development plan for 2016-2020, a period in which Vietnam overcame many challenges to achieve important and comprehensive progress across most fields. These can be mentioned as the whole country focused on coping well with COVID-19, thereby creating favourable conditions for socio-economic recovery and development. The macro economy was stable, inflation was controlled at a low level, and the quality of growth was improved. More investment was poured into socio-economic infrastructure system development, with many important works and projects completed last year. Economic restructuring associated with growth model innovation was accelerated and achieved significant results, along with administrative reform and the improvement of the business environment. Foreign affairs and international integration activities were actively promoted and achieved important results.

Data from the General Statistics Office showed that GDP in 2020 increased by 2.91%, although this was the lowest rate in the recent decade but still a great success in the context of the complicated COVID-19 epidemic, placing Vietnam in the group of countries with the highest economic growth in the world.

Notably, the quality of economic growth had a positive change as labour productivity is estimated at VND117.9 million per employee (equivalent to US$5,081/employee, up US$290 compared to 2019). The Incremental Capital-Output Ratio (ICOR) also continues to be improved. The added value of the whole industrial sector increased by 3.36% over the previous year, of which, manufacturing increased by 5.82%, playing a key role in leading the overall growth of industry and the economy in general. Public investment disbursement reached 91.1% of the yearly plan with the highest capital growth rate in the past 10 years.

In the context of global trade and investment breaking down due to the impact of the epidemic, the attraction of foreign investment into Vietnam decreased less than the global decline, while total export turnover still increased by 5.1% and a trade surplus was maintained at a record figure of US$19.1 billion, the highest in five years.

With these impressive growth results, Vietnam has become a bright spot in global economic growth. This has been recognised through the simultaneous adjustment to raise the forecast of Vietnam’s economic growth in 2020 by prestigious international financial institutions. For example, the World Bank (WB), in its review report published at the end of December last year, raised its forecast for Vietnam’s economic growth to nearly 2.8%, while the International Monetary Fund (IMF) adjusted its growth forecast to 2.4% instead of the 1.6% put forward in the third quarter, and the Asian Development Bank also raised its forecast for Vietnamese economic growth from 1.8% to 2.3%.

According to the IMF, the scale of Vietnam’s economy has now reached more than US$340 billion, among the top 40 economies in the world, equal to or surpassing some highly developed economies in the region. British magazine The Economist ranked the country in the top 16 most successful emerging economies in the world. According to WB data, with an average economic growth rate of 6.8% a year during the 2016-2019 period, Vietnam is among the top 10 highest growing countries in the world.

The Government’s report on economic development in 2020 and the 2016-2020 period emphasised that one of the highlights of Vietnam’s current economic growth is that it has been much more inclusive, not just in urban but also rural areas, not only in the deltas but also in mountainous and border areas and on islands. Economic growth no longer depends overly on any one economic sector. In addition to the state-owned enterprise sector and foreign-invested enterprises, the role of the private economic sector is gradually being confirmed as an important driving force for the country’s development as stated in Resolution No. 10 NQ/TW of the 12th Party Central Committee. Vietnam’s economic growth also does not focus on only a few economic sectors, as the structure of industry, services, and especially agriculture all play the same role and make important contributions to the whole picture.

Boosting economic recovery, regaining growth momentum

Resolution No. 124/2020/QH14, issued by the National Assembly on the socio-economic development plan in 2021, states that the international and domestic situation is forecast to see a mixture of both opportunities and difficulties, of which, the COVID-19 pandemic continues to be the main negative factor across many fields. In that context, it is necessary to focus on effectively implementing the dual goals of both preventing and combating the epidemic and protecting the people’s health, while boosting socio-economic recovery and development on the basis of maintaining macroeconomic stability, controlling inflation and ensuring an economic balance. Other tasks include strongly promoting economic restructuring associated with growth model innovation, improving productivity, autonomy and competitiveness, and strongly developing the domestic market, in addition to accelerating the implementation of important national projects, promoting the role of key economic regions and big cities, and strengthening the digital transformation.

In 2021, Vietnam’s economic growth is expected to rebound strongly on the solid foundation of macroeconomic stability and maintain positive growth, despite the unprecedented damage caused by the COVID-19 pandemic. There are multiple challenges in the current situation, but the Government is determined to increase GDP growth to 6.5%, 0.5 percentage points above the target assigned by the National Assembly.

Dr. Nguyen Dinh Cung, a member of the Economic Advisory Group of the Prime Minister, said there is still room for growth in 2021. With the right solutions, Vietnam’s economy may achieve more positive growth. The key task for 2021 is to speed up economic recovery even more with a focus on encouraging the development of new businesses and careers in addition to continuing support policies to save troubled businesses from bankruptcy due to the impact of COVID-19.

According to Dr. Cung, improving the business environment was also a highlight during the 2016-2020 period with the inheritance of Resolution No. 19 but being much broadened and focusing more on removing barriers for business freedom across all areas. However, the business environment reform in 2020 faltered because it was no longer urgent task as the Government focused on pandemic control. In 2021, the task of reforming the business environment should be promoted to create conditions for the business community to recover and develop, thereby promoting economic growth.

Associate Professor, Dr. Tran Dinh Thien, Chairman of the Economic Advisory Council to the Vietnam Fatherland Front Central Committee, said that Vietnam’s economic growth at 2.91% in the past year should be considered a miracle, because while all major economies recorded negative growth, the Vietnamese economy, with its very high level of openness, should have been more affected by external shocks as the world’s supply chains broke down, but it overcame the challenge successfully.

Maintaining macroeconomic stability and positive growth is an important foundation for Vietnam’s economy to recover strongly from the pandemic, Dr. Thien said, suggesting that in this crisis, Vietnam needs to make use of the opportunity to take a step forward in its development, by adhering to growth model innovation, innovative startup promotion policies, and synchronous digital transformation in both the business community and State management.