Planning for the 2021-2030 period, vision 2050: To overcome the middle-income trap, make development breakthroughs

With the development vision of building an effective business and investment environment, a humane, harmonious and sustainable society, a dynamic constructive government to overcome the middle-income trap, Binh Duong has been shaping a right direction combining the theoretical and practical foundation in a solid way, creating a new development breakthrough.

Overcoming the middle income trap will confirm that Binh Duong has been shaping a right direction. In photo: Manufacture at Esquel Vietnam.

The six-pillar strategy

With many efforts, Binh Duong is increasingly contributing to the overall growth of the Southern key economic region and the whole country. Binh Duong is one of four provinces and cities contributing to the central budget; accounts for about 10% of the regional budget and 4% of the national budget. In addition, Binh Duong has been actively mobilizing resources inside and outside the budget to invest in transport infrastructure, contributing to upgrading regional connectivity, supporting trade and general economic growth.

Besides the achievements of rapid economic development, the province is facing great challenges, including middle-income traps, overloaded transport infrastructure, human resources do not meet requirements well... Binh Duong's challenge of avoiding the decline in economic growth during the middle-income period to enter the development period of high-income is enormous. Due to the above issues, Binh Duong developed a strategy of six pillars to solve each aspect, this is the biggest plan and goal to help the province make breakthrough in the new era.

Firstly, to avoid intermittent development trap through inherited development. Specifically, the success of the ecosystem-based development based on leverage projects, thereby promoting the resonance of far-reaching value added in many fields of socio-economic life of the province has been verified. Therefore, in order to avoid disruption and maintain strategic inheritance, Binh Duong needs to maintain an ecosystem-based development approach based on leverage projects that drives important priority areas. In order to overcome the middle-income trap, the province needs to determine and construct a new type of ecosystem, smart industrial ecosystem, smart manufacturing, take innovation as motivation, develop industry tied to commerce and services, build science technology urban areas, industrial areas to continue exploiting the accumulated advantages of the province over the years.

Secondly, to avoid productivity traps through innovation-based development. As a leading province in industrial production, at the same time is under a lot of pressure to find new development drivers for the economy. Binh Duong is well aware of the breath of the Industrial Revolution 4.0 and the role of innovation in solving the problem of labor productivity, fight against backwardness. Binh Duong has realized that will by specific actions and projects in the Smart City project. Emphasis is placed on the four pillars to stimulate innovation and science technology; these are people (workforce and creators), technology (research and development), business (businesses and relationship with businesses) and foundational factors (environment, living standards and infrastructure).

Thirdly, to avoid urbanization trap through integrated development of Binh Duong Innovation Region with a five-level pyramid model is a component project in the Smart City project, which is drawn from construction and development practices. The model includes urban planning and public transport infrastructure; building a culture of innovation; balanced economic development; digital transformation; industrial development 4.0; human resource development. Each level plays its own role but is interrelated. Each level is the orientation for a set of deliberate projects to solve challenges of the province according to each subject matter, combined in five classes will create interdisciplinary, wide-ranging, direct impacts on all aspects of social life. Fourthly, to avoid ecological environment trap through sustainable development. Fifthly, to avoid dependency trap through multilateral development. Sixthly, to avoid the trap of inequality through uniform development.

A strategic planning

In order to overcome the middle-income trap, sustain a good growth rate, become a high-income region with a GDP per capita of at least US$12,000, Binh Duong is carrying out integrated planning for the 2021-2030 period, vision 2050. The planning is strategic with the goal of making Binh Duong become a locality with global competitiveness in attracting, developing and retaining scientific talents. The key objective of the Binh Duong Provincial Planning Project for 2021-2030 period, vision 2050 is to continue to develop and implement the six-pillar strategy to help Binh Duong overcome labor productivity trap, urbanization trap, ecological environmental trap, dependency trap and inequality trap; in general, with the goal of Binh Duong becomes the first locality in the country to overcome the middle-income trap.

Nguyen Van Loi, Member of the Party Central Committee, Secretary of the Provincial Party Committee, Head of the Provincial National Assembly’s delegation, said: "The planning of the province in the 2021-2030 period, vision 2050, is to ensure upholding of the role and position of Binh Duong as one of the most dynamic development localities of the southern region and of the country; help Binh Duong to develop and become a prosperous, civilized, beautiful, and intelligent city. The provincial planning needs to make a complete difference for Binh Duong and have the most general vision, have strategic projects, specify strategic investments. Binh Duong has attained important results but must raise its level of development towards green, smart and sustainable direction."

Dr. Tran Du Lich, a member of the Prime Minister's Economic Advisory Group: "The factors that make up the success of Binh Duong in the past quarter century will gradually reduce its effectiveness if it continues to develop based on the "provincial economy" mindset. In order to create new momentum and strive for the goal of sustainable development, Binh Duong needs to move to the "regional economic" development mindset, through four links: (1) the deployment of production forces through regional planning and provincial planning; (2) coordinate the construction of a transport system connecting the region; (3) train human resources and developing the region's common labor market; (4) protect the general environment throughout the region (especially the Dong Nai river and Saigon River)"

Professor, Dr. Tran Tho Dat, Member of the Central Theoretical Council, member of the Prime Minister's Economic Advisory Group: "Binh Duong needs to carry out a study on both academically and practically developing the digital economy. The results of this study will help the province to have an overall assessment of digital economy in the area, with policy orientations and specific solutions to develop the digital economy until 2030. Binh Duong needs to prioritize and pool resources for digital transformation in a number of sectors that own competitive advantages, in order to bring new and practical values to people and businesses, stimulate socio-economic development. The province needs to move quickly from e-government to digital government and the province's approach to implementing comprehensive digital transformation in three axes: digital government, digital economy and digital society. It is necessary to be persevering in and determined to implement the Smart City Project."

Reported by Phuong Le – Translated by Ngoc Huynh