Hanoi (VNA) – The World Bank (WB) released a reporton May 27, offering policy recommendations to help Vietnam maintain qualitygrowth through more dynamic firms, more efficient infrastructure, skills, and amove toward a greener economy.

The report, entitled “Vibrant Vietnam: Forgingthe Foundation of a High-Income Economy”, comes as the country’s Government ispreparing its socio-economic development strategy for 2021-2030 and asocio-economic development plan for 2021-2025.

It suggested that a productivity-drivendevelopment model – combining innovation with balanced development andallocation of private, public, human and natural capital – will be key for Vietnamto achieve its goal of becoming a high-income economy by 2045.

Some of the forces that have propelled Vietnam’sgrowth are now slowing. The country’s demographic dividend is fading, andglobal trade is declining, while other challenges – such as pollution and therise of automation, are growing. The ongoing COVID-19 crisis could be anaccelerator of these trends, according to the report.

It argued that to thrive in such changingenvironment, Vietnam needs to strengthen its productive assets, with prioritygiven to four areas.

To have dynamic firms, encouragingcompetition and easing firms’ entry and exit ensures the flow of resources tothe most innovative and productive firms. This can only happen in a supportivebusiness environment that ensures access to finance, transparent regulationsand legal protections.

Meanwhile, Vietnam has built up a large stock ofinfrastructure. It now needs to improve the efficiency and sustainability ofinfrastructure services, including financing, and operations and maintenance.

Regarding skilled workers and opportunities forall, the report noted the country scores well on basic education, but itwill need to promote university and vocational-technical skills. Those facingbarriers entering the labour market, including ethnic minorities, should beprovided with greater opportunities to boost both social equity and economicgrowth as the population ages and the labour force shrinks.

In terms of green economy, the report saidsustainable development requires more effective management of non-renewablenatural resources such as land, forest and water; stricter pollution controls,including in major urban centers; and mitigation of and adaptation to theinevitable growing impacts of climate change.

WB Country Director for Vietnam Ousmane Dionesaid: “Vietnam is one of the greatest development success stories of our time.The country, however, is now at a turning point where some of its traditionaldrivers of growth are gradually weakening. To achieve its ambition to become ahigh-income economy by 2045, Vietnam must put productivity growth front andcentre of its economic model. In other words, it needs to grow not only fasterbut also better.”

According to Australian Ambassador to VietnamRobyn Mudie, Vietnam’s commitment to bold economic reform has been a majorcontributor to its remarkable economic success.

“Australia is proud to have supported thisreport, which provides clear recommendations on how Vietnam can harnessproductivity enhancing reforms to improve both the quality and equity of itsfuture economic development,” she added./.