Innovation, acceleration lead Vietnam into new era

Wednesday, 01/01/2025

On the occasion of the New Year 2025, Prime Minister Pham Minh Chinh has written an article stressing the importance of innovation, creativity, acceleration, and breakthroughs to lead Vietnam steadily into a new era – the era of rising up for strong, civilised and prosperous development of the Vietnamese nation.

The following is a translation of the Government leader’s full article.

INNOVATION, CREATIVITY, ACCELERATION, BREAKTHROUGHS LEAD THE COUNTRY STEADILY INTO AN ERA OF RISING UP FOR STRONG, CIVILISED AND PROSPEROUS DEVELOPMENT OF THE VIETNAMESE NATION.

The significant, comprehensive, and outstanding achievements across various fields in 2024, despite facing more difficulties and challenges than opportunities and advantages, underscore the exceptional efforts, resilience, and unwavering determination to continue advancing the all-round renewal cause of the entire Party, people, and army. These accomplishments strengthen the foundation and create strong momentum to successfully implement the socio-economic development plan for 2025, contributing to the fulfillment of the goals and tasks set for the 2021-2025 period at the best, paving the way for the nation to confidently step into a new era - the era of rising up for the strong, civilised and prosperous development of the Vietnamese nation.

In 2024, the global situation continued to evolve rapidly and unpredictably, with numerous unprecedented and unforeseen challenges, fierce strategic competitions among major powers, escalating military conflicts in various regions, political instability in some countries, and the slow, uneven, and fragile recovery in the global economy, trade, and investment. Additionally, non-traditional security issues, climate change, energy security, food security, and cybersecurity became increasingly severe. Domestically, opportunities and advantages were interwoven with difficulties and challenges, but challenges outweighed opportunities. The economy continued to suffer dual impacts from external adverse factors and prolonged internal limitations and shortcomings. Meanwhile, natural disasters and storms caused significant severe damage to production, business, and the livelihoods of the people.

In this context, with the exceptional effort to turn challenges into opportunities and change the status quo and turn the tide, with the motto discipline and responsibility, proactive and timely actions, acceleration with creativity, sustainable efficiency, alongside the principle of focusing on action, avoiding retreat, from the very beginning of 2024, the Government and the Prime Minister directed all levels, sectors, and localities to concentrate on implementing the Resolution of the 13th National Party Congress, as well as resolutions and conclusions of the Party Central Committee, and its Politburo and Secretariat, and the National Assembly; adopt a proactive, flexible, and reality-based approach, and concertedly and effectively implement key tasks and solutions across all fields, with priority given to promoting economic growth while maintaining macroeconomic stability, controlling inflation, and ensuring major economic balances, addressing obstacles and bottlenecks related to institutional and legal frameworks; accelerating the progress of key infrastructure projects; placing emphasis on cultural and social development, disaster prevention, and environmental protection; intensifying the fight against corruption, negative phenomena, and wastefulness; strengthening national defence and security; promoting foreign relations and international integration; and at the same time, closely monitoring the situation and responding promptly and effectively to external shocks and changes.

Thanks to the high determination, great efforts, and decisive actions of the entire political system, the people, and the business community under the leadership of the Party - particularly the Politburo, the Secretariat, and the General Secretary at the helm, Vietnam's socio-economic situation showed positive recovery with consistent improvements month on month and quarter on quarter. At the end of 2024, all 15 key targets were achieved and surpassed, with outstanding results in various fields, earning high recognition from both the people across the country and the international community.

Vietnam continued to shine as a high-growth economy, ranking among the top-performing countries in the region and the world. The GDP growth for the whole year was estimated at approximately 7%, with an economic size of around 470 billion USD. The economic structure saw further positive shifts, with the agricultural sector's share declining to about 11%. Growth quality improved, as evidenced by an estimated 5.7% increase in labour productivity, exceeding the set target, and the Index of Economic Freedom up 13 places, ranking Vietnam 59th out of 176 countries and territories.

Vietnam received high praise for its inflation control and macroeconomic stability in the face of significant global volatility and difficulties. The average consumer price index (CPI) in 2024 increased by about 3.6%, even as wages were raised and the prices of certain state-managed goods were adjusted up. Major economic balances were maintained, with total import-export turnover reaching record level and agricultural exports surpassing 62 billion USD, also a new high. The trade surplus was estimated at around 24 billion USD, contributing to improving the balance of international payments. Thanks to the positive economic recovery and enhanced efficiency in tax management, total state budget revenue exceeded projections by over 19% (approximately 320 trillion VND), adding more resources for development investment. Public debt, government debt, national foreign debt, and the budget deficit remained below the prescribed limits.

Vietnam remains a safe and attractive destination for international businesses, partners, and investors. It ranks among the top 15 developing countries globally attracting the biggest foreign direct investment (FDI) with approximately 40 billion USD, of which 25 billion USD was disbursed. The country is also one of the top 20 largest economies in terms of trade volume, with 17 free trade agreements (FTAs), establishing itself as a key link in regional and global supply chains. Vietnam is undergoing a strong transformation toward a digital, green, high-tech, and environmentally friendly economy. Notably, it has secured an important position in the global semiconductor industry, drawing major technology groups. The national brand value in 2024 reached 507 billion USD, ranking 32nd out of 193 countries, up one place from 2023.

Strategic breakthroughs were decisively implemented with significant and clear results. Focusing on reviewing and improving institutions and legal frameworks, the National Assembly passed numerous laws and resolutions to address challenges and remove bottlenecks in various fields. The development of strategic infrastructure was comprehensively accelerated. Over 2,000 kilometers of expressways were put into operation, and the Quang Binh-Hung Yen 500 kV circuit-3 power transmission line project was completed in only six months, marking a record. Preparations for national railway projects were expedited. Human resource development saw positive changes, with strong promotion of science, technology, innovation, and entrepreneurship. Vietnam ranked 44th out of 132 countries and territories in the Global Innovation Index 2024, climbing two places compared to 2023. Planning efforts were intensified, with all 111 sectoral, provincial, and national plans approved and implemented. Concurrently, stagnant and inefficient long-term projects were handled, contributing to unlocking resources, reducing waste, and creating new space and momentum for development.

Socio-cultural development received significant attention, with social welfare ensured and the people's quality of life further improved. The multidimensional poverty rate dropped to approximately 1.9%, and the average income of workers increased by about 7.4%. The Happiness Index rose by 11 steps, placing Vietnam 54th out of 143 countries and territories. Additionally, Vietnam’s Sustainable Development Goals (SDG) index ranking improved by one position compared to 2023, reaching 54th among 166 countries and territories. The country promptly surmounted the consequences of Typhoon No. 3 (Typhoon Yagi) and supported affected residents, with touching and meaningful acts of solidarity and compassion throughout the nation.

Administrative reform and anti-corruption efforts continued to be strengthened. Emphasis was placed on simplifying and reducing administrative procedures, enhancing decentralisation and delegation of authority, and rigorously implementing the policy to restructure and streamline the organisational apparatus. Efforts to increase inspections, address complaints and denunciations, and improve the effectiveness of the combat against corruption and negative phenomena were prioritised. These actions ensured minimal disruption to socio-economic development while reinforcing public trust.

National independence and sovereignty were firmly upheld, with defence and security capabilities significantly strengthened. Foreign relations and international integration were actively promoted, further elevating Vietnam's reputation and position on the global stage. The all-people national defence posture, and the people's security posture, associated with the posture of people’s hearts and minds were solidified and enhanced. The defence industry saw many positive outcomes. Political security and social order and safety were guaranteed. International cooperation was expanded and upgraded, with economic diplomacy receiving due attention, creating a favourable foreign affairs landscape, contributing to maintaining a peaceful, stable, and cooperative environment for development.

While we take pride in the remarkable achievements of 2024, it is essential to straightforwardly acknowledge the remaining limitations, shortcomings, and challenges that require to be addressed promptly and effectively in the coming time. Macroeconomic stability still faces underlying risks, with significant pressure on exchange rates, interest rates, and inflation control, particularly in light of unfavourable external impacts. Several sectors continue to encounter difficulties in production and business operations, with market demand recovering slowly and unclearly. The implementation of some key infrastructure projects faces obstacles, and public investment disbursement has not met expectations.

Institutional and legal frameworks remain the bottleneck of bottlenecks. Legal drafting still leans heavily toward administrative management rather than fostering development. Certain processes and procedures are outdated or problematic, and some legal provisions, mechanisms, and policies are slow to be amended or supplemented to meet practical needs. Decentralisation and delegation of authority efforts still encounter obstacles, with many specific tasks concentrated at the central level. Administrative procedures and business conditions in some areas remain cumbersome and inefficient. Wastefulness persists across multiple sectors, leading to resource depletion, increased costs and development barriers, and missed opportunities for national progress.

Developing human resources, especially high-quality ones, has not met requirements of development and has not created breakthroughs in productivity, quality, efficiency, and competitiveness of the economy. The development gap between regions and social classes has not improved significantly; the living conditions of a part of the population have remained poor. Slow progress has been seen in solving serious environmental pollution, traffic congestion, and flooding in major cities. Unpredictable developments of climate change, natural disasters, storms, landslides, floods, subsidence, and droughts have caused severe consequences. The high-tech crime and online fraud have showed complex developments while ensuring security and order in certain areas has faced challenges.

The limitations, inadequacies, difficulties, and challenges mentioned above come from both objective and subjective factors. The main objective causes are the complicated and unpredictable global situation, with many difficulties and challenges; the lingering negative impacts of the COVID-19 pandemic. Meanwhile, natural disasters and storms, especially Typhoon Yagi, have caused severe consequences. The subjective reasons include unstrict observance of discipline in some times and some places, and decentralisation in some areas still facing obstacles. Some officials evade responsibility; the capture of the situation, policy advice and response in some cases have not been timely and effective, and opportunities for development have not been fully tapped; the spirit of overcoming difficulties and enhancing self-reliance among some agencies, units, and a segment of officials and civil servants is still low.

Based on the analysis and evaluation of the situation in various fields and from leadership and management practices, we can draw some valuable and profound lessons to contribute to improving mindset, methodology, policy orientation, and implementation organisation in the coming time.

First, the strength of great national unity under the leadership of the Party is invincible. It is a fundamental foundation for sustainable development, and a fulcrum for overcoming all difficulties. It is necessary to promote the spirit of self-reliance and self-resilience and the collective effort of the entire nation to innovate and rise up. The interests of the country, the nation, and the people must always be placed above all else, first and foremost.

Second, there must be a mindset for breakthrough development, strategic vision, long-term perspective, deep thinking, and ambitious actions; completing one task before moving on to the next; valuing time, intellect, creativity, decisiveness, and timing. Focus on accurately grasping the situation, with flexible, timely, and effective policy responses; proactively, flexibly, and creatively implementing the Party and State's guidelines and policies.

Secondly, there must be a breakthrough development mindset, a strategic and long-term vision, a way of thinking deeply and acting big; complete each task before moving on to the next; highly valuing time, intelligence, creativity, decisiveness, and timing. We must focus on grasping the situation; respond to policies flexibly, promptly, and effectively; stay proactive, flexible, and creative in implementing the Party’s and State’s guidelines and policies.

Thirdly, it is essential to focus on unlocking, mobilizing, allocating, and effectively using all resources; consider internal strength fundamental, strategic, long-term, and decisive, while external resources important, necessary, and breakthrough; maximize the potential, strengths, intelligence, and resilience of the Vietnamese people.

Fourth, special attention must be paid to ensuring social welfare and improving the material and spiritual lives of the people, placing people at the centre, and considering them the subject, the goal, and the most important resource and driving force for development. We should not sacrifice progress, social equity, and environmental protection in pursuit of mere economic growth, and leave no one behind.

Fifth, it is crucial to strengthen discipline, step up decentralisation and delegation of power associated with resource allocation, and increased inspection, supervision and control of power; vigorously reform administrative procedures; resolutely eliminate the asking-giving mechanism; and intensify the fight against corruption, waste, and negative phenomena, contributing to reinforcing trust among the public and the society.

III

In the coming time, the global and regional situation is expected to continue to be complex and unpredictable; the world economy is recovering slowly, with increasing risks; the trend of separation and polarisation is becoming clearer. Domestically, alongside favourable factors, the economy continues its recovery trend, with new policies and mechanisms proving effective. However, significant difficulties and challenges remain, especially from adverse external factors and prolonged internal limitations and inadequacies. Non-traditional security factors, natural disasters, climate change, resource depletion, and an aging population are having increasingly serious impacts. Meanwhile, Vietnam is a developing country featuring an economy in transition with a modest scale, high openness, and limited resilience and competitiveness.

The year 2025 holds special significance as a year of acceleration and breakthroughs to successfully fulfill the 5-year socio-economic development plan for the 2021-2025 period. It will see many significant national events - the 95th founding anniversary of the Party, the 50th anniversary of the liberation of the South and national reunification, the 135th birth anniversary of President Ho Chi Minh, the 80th founding anniversary of the country, and the Party congresses at all levels leading up to the 14th National Party Congress. This will open a new era - the era of rising up for strong, civilised, and prosperous development of the nation, as guided by Party General Secretary To Lam. To successfully achieve the strategic goal of becoming a developing country with modern industry and high middle income by 2030, and a developed country with high income by 2045, we must make maximum efforts right from 2025 to create breakthrough factors to attract investment, and strongly promote production and business, aiming for a growth rate of at least 8% or even higher under favourable conditions. It will serve as a solid foundation to attain a double-digit growth rate from 2026.

The country, at significant historical moments, needs decisions of historical importance. Achieving the strategic goals commemorating the 100th founding anniversary of the Party and the 100th founding anniversary of the country is a challenging yet honourable mission for the generations today and in the future. It connects the past, the present, and the future; and is a prerequisite for lifting the country out of the middle-income trap to become a developed nation. We can fully realise this with innovative thinking, high determination, great efforts, decisive actions, breakthrough solutions, and timely, flexible, and effective implementation.

We must focus on realising the distinct potential, outstanding opportunities, and competitive advantages of the country. Each level, sector, agency, unit, business, and every Vietnamese citizen should bring into full play the spirit of solidarity and joint efforts, with the mindset of daring to think, daring to act, daring to break through for the common good; what has been said must be done, what has been committed must be fulfilled; what has been done must be effective, measurable, and accountable. We need to grasp and effectively implement the principle: The Party leads, the Government performs, the National Assembly agrees, the people support, and the Fatherland expects. We only discuss what needs to be done, not what to retreat from. Whatever task is undertaken, it must be completed.

The Resolution of the 13th National Party Congress, the resolutions and conclusions of the Party Central Committee and its Politburo and Secretariat, the National Assembly, and the Government, as well as the directives of the Prime Minister clearly outline the tasks and solutions across all fields that need to be implemented synchronously, comprehensively, and effectively by authorities at all levels, sectors, and localities with the spirit of clear individuals involved, clear tasks, clear responsibilities, clear deadlines, and clear results, focusing on the following key tasks:

1. Continuing to focus on perfecting institutions and laws to create a breakthrough of breakthroughs, creating momentum for national development in the spirit of open policies, seamless infrastructure, and smart governance. Paying special attention to promoting innovative mindset, facilitating development, and creating new development spaces. Innovating, digitalizing, ensuring publicity and transparency, and enhancing the efficiency of various markets; synchronously implementing solutions to restore and develop a healthy real estate market, and upgrade the stock market. Taking decisive action to reorganise the apparatus towards the direction of Elite - Streamlined - Strong - Efficient - Valid - Effective, associated with the restructuring and improvement of the quality of officials and public servants in accordance with the 12th Party Central Committee’s Resolution 18-NQ/TW; creating specific policies to encourage officials and civil servants who dare to think, act, and take responsibility for the common good. Continuing to promote administrative reforms, simplify procedures, build an e-government, and implement a project on developing applications of population data, identification and electronic authentication to serve national digital transformation in the period 2022-2025, with a vision to 2030 (Project 06); effectively carrying out solutions to improve the investment and business environment, ensuring regional and international competitiveness.

2. Continuing to prioritise prompting economic growth while ensuring macro-economic stability, controlling inflation, and maintaining major balances of the economy. Improving analyzing and forecasting capabilities; managing fiscal and monetary policies proactively, promptly, flexibly, harmoniously, and effectively to unlock, mobilise, and efficiently use resources, especially from the people. Focusing on revitalising traditional growth drivers, particularly measures to stimulate investment, consumption, and exports; creating breakthroughs to boost new growth drivers, especially digital transformation, green transition, and the development of emerging industries such as semiconductors, big data, artificial intelligence (AI), the Internet of Things (IoT), and cloud computing.

3. Focusing on developing a modern, synchronised strategic infrastructure system; accelerating key projects; connecting expressways with airports and seaports; urgently implementing high-speed railways and urban rail lines; striving to complete 3,000 kilometres of expressways and over 1,000 kilometres of coastal roads by the end of 2025. Developing digital infrastructure, urban infrastructure, culture, society, education, healthcare, and sports; researching and effectively utilising underground, maritime, and space resources.

4. Promoting industrialisation and modernisation, restructuring the economy in combination with renovating the growth model in the direction of enhancing the application of science and technology, improving productivity, quality, effectiveness, and competitiveness. Strongly developing sectors with potential and advantages, such as agriculture, industry, and services, applying high technology in a green, effective, and sustainable way; reducing logistics costs; unlocking the potential and rapidly developing various types of tourism. Improving the operational efficiency of state-owned groups and corporations; designing policies to encourage the strong development of private enterprises; attracting selective foreign investment; engaging more deeply in regional and global value chains.

5. Clearly defining and having breakthrough mechanisms, policies and solutions at both strategic and tactical levels to make high-quality human resources, science and technology, innovation, and digital transformation a national priority in line with the spirit of the Politburo’s Resolution No. 57-NQ/TW dated December 22, 2024, creating breakthroughs for rapid and sustainable development. Focusing on reviewing and establishing breakthrough mechanisms and policies to improve the quality of education and training, and increase labour productivity. Promoting national digital transformation, developing an innovation ecosystem, creating momentum and inspiring businesses, entrepreneurs, and Vietnamese people at home and abroad, especially the young generation, to take the lead and strive for excellence.

6. Emphasising the development of culture in harmony with socio-economic growth; building mechanisms and policies to develop cultural and entertainment industries; developing a system of Vietnamese human values for comprehensive development; effectively implementing policies for people who rendered service to the nation, ensuring social security, and sustainably reducing poverty; focusing on ethnic and religious policies, promoting the spirit of religion and nationality, and leading a good religious and secular life. Effectively carrying out the National Target Programmes on building new-style rural areas, sustainable poverty reduction, socio-economic development in ethnic minority-inhabited and mountainous areas, cultural development, and drug prevention. Promoting the movement Join hands to eliminate temporary and dilapidated houses nationwide by 2025; and striving to complete over 100,000 social housing units.

7. Strengthening the fight against corruption, wastefulness, and negative phenomena. Continuing to perfect institutions, and address loopholes and shortcomings in mechanisms, policies and laws. Enhancing publicity, transparency, and accountability; and effectively monitoring assets and incomes of persons holding positions and authority. Continuing to intensify inspections, investigations, and strict settlement of acts of corruption, negative phenomena, and wastefulness.

8. Continuing to consolidate and strengthen national defence and security; maintain national independence, sovereignty, and interests; promote the development of defence industry and dual-use security industry; and ensure political security and social order and safety. Stepping up the implementation of measures to curb crimes, aiming for a 5% reduction in social order-related offenses; ensuring traffic safety; focusing on improving the effectiveness of fire and explosion prevention and control.

9. Enhancing the effectiveness of external affairs and international integration; continuing to deepen relations with partners in a more substantive, and effective manner to ensure mutual interests. Improving the quality of strategic consultancy and forecasting to proactively respond to any arising problems and protect the Fatherland early and from afar, before dangers appear. Strongly promoting economic diplomacy, cultural diplomacy, and people-to-people exchanges to serve national development.

10. Enhancing the communication work, especially policy communication; strengthening the popularisation, promotion, and multiplying of good models, innovative practices, and examples of good deeds. Improving the effectiveness of the information and education, and mass mobilisation work, and closely coordinating with the Vietnam Fatherland Front, political-social organisations, and mass organisations to create social consensus, solidify the great national unity bloc, and strive to comprehensively achieve all set socio-economic development goals and tasks.

* *

The tasks set for 2025 and the coming period are very heavy. Promoting the achievements gained after nearly 40 years of renewal; with the solidarity, consensus, high sense of responsibility, and self-reliance of the entire political system, the people, and the business community under the leadership of the glorious Communist Party of Vietnam, our country will certainly overcome all difficulties and challenges, strive to successfully achieve the socio-economic development goals and tasks set for 2025, contributing to the fulfilment of the socio-economic development plan for the 2021 - 2025 period at the highest. We are confident that the Vietnamese intelligence and mettle, tested through thousands of years of heroic struggles for national independence and defence, will continue to shine, elevating our country to a new height and achieving even greater accomplishments in the era of the nation’s rise with strong development, civilisation and prosperity, positioning our nation to be on a par with powers of the world, as wished by our beloved President Ho Chi Minh./.

PHAM MINH CHINH

Politburo member, Prime Minister

VNA

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#innovation #acceleration #nation's rise #new era #socio-economic development