Viet Nam targets average growth rate of at least 6.5% in next five years

The National Assembly on Tuesday adopted a resolution on socio-economic development plan for the 2021-2025 period, targeting average growth rate of 6.5-7 percent over the period.

The plan is a planning instrument with a multi-sectoral approach which sets out overall objectives: (i) ensuring rapid and sustainable growth on the basis of enhanced macro-economic stability, development of science, technology and innovation; (ii) striving to achieve average growth rate higher than that in the 2016-2020 period and striving to turn Viet Nam into a developing country with modernity-oriented industry and surpassing the low middle-income status; (iii) improving productivity, quality, effectiveness and competitiveness of the economy; (iv) carrying out comprehensive solutions to overcome impacts of the COVID-19 pandemic and boost recovery; (v) bringing into play the cultural values, the strength of Vietnamese, and creativity of individuals; (vi) focusing on environmental protection and effective adaptation to climate change; (vii) enhancing national defense and security; (viii) proactively and actively boost international integration and improving Viet Nam’s international standing and prestige, and others.

Specific goals

The annual GDP growth is projected to average 6.5-7 percent in the 2021-2025 period while the GDP per capital is estimated to reach US$4,700-US$5,000 by 2025.

The ratio of processing and manufacturing to GDP is expected to increase to more than 25 percent and the GDP share of digital economy would rise to 20 percent.

The rate of contribution of total factor productivity (TFP) to growth is expected to reache 45 percent.

The rates of urbanization and budget overspending to GDP would increase to 45 percent and 3.7 percent, respectively.

To realize the above objectives and goals, the plan figures out 12 major solutions, including focusing on realization of the dual goal of COVID-19 containment and economic recovery; refining institutions for development; accelerating the restructuring of the economy in combination with transforming growth model, improving productivity, quality, effectiveness and competitiveness, advancing digital economy and digital society; strengthening mobilization, allocation and utilization of resources, innovating mechanisms on allocation of investment resources among others.