Vietnam in Strong Need of Huge Changes in Economic Structures

Diep Nguyen

17:45 09/05/2019

BizLIVE -

The next target is to have 100 thousands of companies and instead of mere installing, the new path will be producing Vietnamese products with Vietnam technology, Prime Minister Stressed.

Vietnam in Strong Need of Huge Changes in Economic Structures

Prime Minister Nguyen Xuan Phuc - Photo: VGP

Technology companies are key in realizing the targets of developing countries in 2045. Using technology to solve Vietnam’s matter and from Vietnam, local companies can expand globally and solve global problems.
This was the key message in the statement of Prime Minister Nguyen Xuan Phuc in National Forum on Developing Vietnam Technology.
Prime Minister Nguyen Xuan Phuc stated that: “From the beginning of the term, the Vietnamese government and the Prime Minister have been encouraging companies to start new businesses, nurturing the ambitions for development. I strongly believe that Vietnam’s economy can only prosper when we have the companies that can compete on the global scale. Companies must not be satisfied with the current conditions but should also try to find new chances brough about by technology and market”.
According to Prime Minister Phuc, technology is key in economic development, avoiding the middle income trap and help Vietnam to become developed country.
Vietnam has set out the target that by 2045, Vietnam will become a prosper industrial power with more than 50 percent of population are middle income people. What are needed to realize those targets? 
Prime Minister thinks that there need to be the fourth industrial revolution. Vietnam companies should first have the invention capacity, invent new technology, produce high quality products.
Prime Minister stressed on the data that digital commerce now contributes $ 3.5 billion to the total economy, which is equivalent to 1.7 percent of total GDP. Digital commerce is expected to surge to $ 42 billion in 2030 through developing digical technology to increase labor productivity and reduce costs. 
In Vietnam currently, in the information and communications fields, there are about 50 thousands companies with the annual total revenue of $ 100 billion. The next target is to have 100 thousands of companies and instead of mere installing, the new path will be producing Vietnamese products with Vietnam technology and from that companies develop globally.
The fourth industrial revolution brings golden chances for the new initiatives to change the orders of doing businesses. Economies around the world will change from the traditional models of development depending in the cheap labor, land and resources into the model based on the technology and development. 
The labor intensive industries will lose the competitive advantage and have to scale down the operations. Thus Vietnam is in strong need to restructure the economy to adjust with the new circumstance.

DIEP NGUYEN

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