To achieve its goal of becoming a high-income country by 2045, Vietnam must maintain an annual growth rate of 5.4%. This requires a shift from input-driven growth to innovation-driven growth, with a focus on human capital, efficient labor and capital markets, competition, and technology adoption.

This was the assessment of Prof. Yasuhiro Yamada, a Senior Policy Fellow on Mekong Affairs at the Economic Research Institute for ASEAN and East Asia (ERIA), at the international scientific conference "Vietnam's Challenges: Towards a High-Income Country" held in Da Nang on October 24-25.

The Japanese professor highlighted the crucial role of digital technology in this transition. He emphasized the potential of key industries like electronics, advanced agriculture, textiles, digital transformation-related sectors, automobiles, healthcare, and energy to drive economic growth and a circular economy.

According to Prof. Yamada, Vietnam has sustained a high economic growth rate since the early 1990s due to economic reforms and opening up to the world. Real gross national income (GNI) per capita growth averaged around 5% during the 1995-2019 period, significantly surpassing many developed economies.

Assoc. Prof., Dr. Nguyen Hong Son, Deputy Head of the Pary Central  Committee's Economic Commission, noted that Vietnam's rapid economic growth since the 1990s, fueled by economic reforms and openness, has led to significant progress. However, the country now faces challenges posed by global and regional changes, including the Fourth Industrial Revolution and climate change. Digital and green transformations are seen as crucial for accelerating Vietnam's development.

Speaking at the event, Prof. Tran Van Tho, Honorary Professor at Waseda University, Japan, emphasized the importance of shifting from input-driven growth to total factor productivity (TFP) growth.

He highlighted the role of institutional reform in maintaining growth and avoiding the middle-income trap.

Prof. Tho noted that to achieve long-term growth, Vietnam needs to focus on policies promoting industrialization, supporting SMEs, improving factor markets, and investing in education and R&D.