Intrinsic strength of business is key to socio-economic development: Forum in Hanoi

WVR/VNA - Vietnam needs to outline rational policies to promote intrinsic strength of businesses with a view to boosting socio-economic development, experts said on the occasion of the Vietnam Socio-economic Forum held in Hanoi on September 19, 2023.
Businesses’ intrinsic strength - key to socio-economic development
Intrinsic strength of business is key to socio-economic development: At the Vietnam Socio-economic Forum in Hanoi on September 19, 2023. (Photo: VNA)

Jonathan Pincus, UNDP Senior International Economist, said Vietnam should give fresh impetus to national innovation and invest big in research and development (R&D) activities with a view to improving labour productivity in long term.

He added that Vietnam’s spending on R&D activities, a measure to evaluate the ability to better labour productivity, has lagged behind that in China, Thailand and Malaysia.

Besides, rational mechanisms should be put in place to attract leading Vietnamese scientists to domestic institutes and universities, he said, highlighting they will make practical contributions to the national development.

Low worker productivity has hampered economic recovery post pandemic, other experts said, pointing a shortage of employees with substantial experience and skills, and a large number of micro and small businesses as major reasons.

While Government policies to renew the growth model and enhance innovation in science and technology have created favourable conditions to better labour productivity, they have been carried out in a sluggish fashion due to poor engagement from businesses.

According to Nguyen Le Hoa, Director of the Department for Productivity Research at the Vietnam Productivity Institute, Vietnam should take more drastic measures to boost labour productivity, with inter-departmental and inter-ministerial coordination put at the focus to build uniform policies.

Meanwhile, Felix Weidencaff, an employment specialist from the International Labour Organsiation (ILO), said that due attention should be given to small and medium enterprises, the key players in the Vietnamese economy, so as to promote labour productivity in a sustainable fashion.

The ILO specialist recommended Vietnam develop human resources and create more jobs to meet the increasing demand of the knowledge economy and the Industry 4.0.

The country should work to tackle the nature of unemployment and handle new challenges, he added.

Nguyen Dinh Cung, former Director of the Central Institute for Economic Management, advised the Government to create friendly policies for the private economic sector, which contributes nearly 50% to the nation’s GDP.

Easier access to capital, interest rate cut, tax reduction, and removal of complicated procedures will be great support for businesses this time, he said.

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(Source: WVR/VNA)