(Mr): Phung Xuan Minh. [Chairman of the Board of Directors of PT Group & Saigon Ratings].
Forthe new economic growth model in the era of national developmentto operate effectively, Vietnam needs not only new drivers in science, technology, innovation, and green transformation. More importantly, it must build a modern, transparent institutional system capable of unleashing resources and creating trust among the people, businesses, and investors.
Experience shows that much of the economy’s untapped potential is not due to a lack of capital, resources, or ideas, but rather to existing barriers in mechanisms, policies, and implementation. Therefore, economic institutional reform must become one of the strategic breakthroughs, carried out vigorously, comprehensively, and continuously.
1. Promptly Remove Major Bottlenecks and Obstacles in the Economy
One of the biggest barriers to economic development today is the overlap and inconsistency among regulations on investment, land, construction, planning, finance, and the environment. Many projects must pass through several agencies and layers of procedures, increasing compliance costs, delaying implementation, and causing businesses to miss investment opportunities.
The gap between policy formulation and enforcement also remains significant. Even a sound policy cannot deliver results if responsibilities are unclear, procedures are complicated, or officials are reluctant to act. Therefore, reform must go beyond revising legal documents and focus on implementation, supervision, accountability, and measurable outcomes.
Improving the efficiency of the state-owned economy is another important requirement. State resources should be concentrated on strategic infrastructure, essential public services, fundamental technologies, and sectors where the private sector cannot invest effectively. State-owned enterprises must improve governance, strengthen financial discipline, limit non-core investments, and hold representatives of state capital accountable for performance.
The leading role of the state-owned economy should not mean replacing the market. Instead, the State should create the necessary foundations and conditions for enterprises of all economic sectors to develop fairly and efficiently.
Land resources and public assets must also be unlocked. Delays in land pricing, site clearance, planning adjustments, and data connectivity have caused many projects to remain stagnant. Vietnam needs a unified land database, transparent planning information, market-based land valuation, stronger control over speculation, and better protection of citizens’ lawful rights.
Unused public housing, land, and assets should be reviewed and handled quickly, transparently, and for appropriate purposes. They may be converted into schools, hospitals, cultural facilities, public services, or productive assets that generate additional development resources.
A more balanced financial market is equally essential. Long-term growth cannot depend excessively on bank credit. The financial system should develop banks, stock markets, corporate bonds, investment funds, insurance, and other long-term capital channels in a coordinated manner.
For the corporate bond market, confidence must be rebuilt through transparency, discipline, and accountability. Issuers should disclose their financial condition, capital use, collateral, and debt repayment capacity. Advisory, distribution, auditing, and credit rating organizations must also bear responsibility corresponding to their roles.
Credit ratings should be expanded to help investors identify risks, distinguish credit quality, and price interest rates more accurately. When information is standardized and risks are properly assessed, corporate bonds can become an effective medium- and long-term funding channel.
Innovation bottlenecks must also be removed. New ideas can only contribute to growth when they are quickly converted into products, enterprises, and commercial value. This requires improved venture capital mechanisms, research commercialization, intellectual property valuation, and controlled testing frameworks.
Research funding should be evaluated mainly by outputs and practical results rather than administrative paperwork. The State should accept reasonable risks in scientific research, protect innovators, and strengthen cooperation among government agencies, enterprises, universities, and research institutes. Businesses should become the main entities commissioning, financing, receiving, and commercializing research outcomes.
2. Promote Strong and Comprehensive Economic Institutional Reform
Modern economic institutions must protect freedom of business, property rights, contractual rights, and equal treatment among economic sectors. The State should shift from a control-oriented approach to a development-oriented one, and from excessive pre-approval to post-supervision based on risk management.
In emerging sectors, activities should not be prohibited simply because regulations are incomplete. Instead, controlled sandbox mechanisms should be established with clear scopes, timeframes, responsibilities, and risk limits. This approach is particularly important for artificial intelligence, digital finance, digital assets, green technology, and new business models.
Administrative reform must bring genuine reductions in time and costs for citizens and enterprises. Each procedure should be reviewed to determine whether it remains necessary, can be integrated with another process, or can be completed entirely in a digital environment.
At the same time, markets for land, capital, labor, science, technology, and data need to be developed in a coordinated manner. When resources are allocated according to market signals and used efficiently, capital and labor can move more quickly toward sectors with higher productivity and added value.
3. Create Space for Modern National Development and Governance
Institutional reform must be linked with the reorganization of national development space. National, regional, and local planning should be closely connected to avoid fragmented investment, unhealthy competition, and duplication of infrastructure.
Economic corridors, urban centers, industrial zones, seaports, airports, and logistics hubs should be developed as an integrated network. Each locality needs to identify its comparative advantages while participating in regional cooperation to share infrastructure, labor, markets, and support services.
Modern governance also requires a transition from paper-based administration to data-driven decision-making. Population, business, land, finance, healthcare, education, and social security data should be connected, standardized, cleaned, and shared under clear security and privacy regulations.
Effective use of data will enable authorities to forecast trends, identify risks early, and make evidence-based decisions. Citizens and businesses will also gain faster access to public services without repeatedly submitting information already available within government systems.
4. Build an Honest, Capable, and Service-Oriented Civil Service
Even the best institutions cannot operate effectively without competent, responsible, and ethical officials. Building a high-quality civil service must therefore be regarded as a decisive condition for successful reform.
Public servants in the new era need legal knowledge, digital skills, data literacy, coordination capacity, and a strong service mindset. Performance assessments should be based on progress, output quality, public satisfaction, and the ability to solve practical problems.
The principle of clear tasks, responsibilities, authority, deadlines, and outcomes should be consistently applied. Leaders must be held accountable for delays while receiving sufficient authority to make timely decisions.
Alongside preventing corruption and controlling power, Vietnam needs mechanisms to protect officials who dare to think, act, and take responsibility for the common good. An honest administration is not only free from corruption but is also professional, efficient, transparent, friendly, and centered on citizens and businesses.
Conclusion
Reforming economic institutions and building modern national governance are essential foundations for a new growth model in the era of national development.
When legal bottlenecks are removed, land and financial resources are mobilized, innovation is encouraged, development space is better organized, and the civil service truly serves society, the economy will gain stronger momentum for rapid and sustainable growth.
The success of reform should not be measured by the number of documents issued, but by improvements in the business environment, public trust, policy effectiveness, and the ability to transform national resources into concrete development value.
