Communist Review - The documents of the 13^th National Congress of the Communist Party of Viet Nam attach great importance to economics, especially in three reports: Political Report, 10-year Socio-economic Development Strategy (2021-2030 period) and the report reviewing 5-year socio-economic development plan in 2016-2020 and that highlighting orientations for 5-year socio-economic development plan from 2021 to 2025. What stood out in those reports were not only the presentation but also new ideas regarding innovation-led growth model and economic restructuring, industrialization and modernization, the perfection of socialist-oriented market economy institutions and international economic integration.

Renovating growth model and restructuring the economy

It was not until the Party’s 11^th Congress that the issues of renewing growth model and restructuring the economy were formally concerned. The Socio-Economic Development Strategy 2011-2020 specified that “Transforming the growth model harmoniously in both width and depth, expanding the economy size and focusing on improving quality, while ensuring the quality of growth, efficiency and macro-economic stability. Restructuring the economy, focusing on manufacturing sectors peculiar to each region; promoting enterprise restructuring and market regulation; raising the added value and competitiveness of domestic products, local enterprises and the whole economy; developing knowledge economy; developing green economy in conjunction with environmental protection”⁽¹⁾. These spotlights were reiterated in the 12^th Congress. “Continuing to beef up synchronous and comprehensive restructuring of the economy and sectors and areas associated with renewing growth model, focusing on key areas: public investment, commercial banking system and financial institutions, state budget, solutions to the problem of bad debts, public debt management, state-owned enterprises including state-owned groups and corporations, agricultural restructuring, etc.” ⁽²⁾

Thus, it can be seen that the issue of renewing growth model and restructuring the economy is of paramount importance and persistently concerned by the Party since the 11^th National Congress. The Party’s guidelines on this issue were relayed and developed. The restructuring that initially took place in three sectors has now extended to the entire economy.

The documents of the 13^th Congress continues to highlight aforementioned spotlights, but emphasizes that the new growth model should be driven by the Fourth Industrial Revolution (Industry 4.0), science and technology achievements, innovation, and creativity. Specifically, the Congress holds that, “Continuing to speed up growth model renewal, strongly shift the growth model into the model driven by increased productivity, science and technology achievements, innovation, and high quality human resources; exploiting economically and efficiently resources to improve the health, efficiency and competitiveness of the economy. Improving business environment, encouraging innovative start-ups, prioritizing industries, areas and businesses that strongly apply scientific and technological achievements, especially the Industry 4.0’s; developing high-tech products with competitive advantages, high added value, and environmentally friendly ones, effectively participating in production networks and global value chains”⁽³⁾.

What is new and emphasized here is the new growth model driven by scientific and technological achievements and innovation, which could be explained as follows. Firstly, it is necessary for Viet Nam, which has been widely developing its economy, to promote development in depth. Secondly, in the context of the Industry 4.0, it is important to take advantage of all opportunities in order to generate rapid and sustainable development. Resolution No. 52-NQ/TW issued by the Politburo on a number of guidelines and policies on proactively joining the fourth Industrial Revolution stated that it is necessary to be proactive and actively participate in the Fourth Industrial Revolution. In response to this, the Government mapped out an action plan. Among the specific economic targets for the 2020-2025 period, the digital economy will generate 20% of the gross domestic product (GDP), and by 2030, this figure is projected to reach about 30%. The Congress also accentuates the requirement to improve the business environment, promote innovative start-ups, and develop industries, areas and businesses that pioneer the application of scientific and technological achievements; developing high-tech products with competitive advantages, high added value, and environmentally friendly products, effectively participate in production networks and global value chains.

Regarding economic restructuring, the 13^th Congress Documents emphasize, “Continuing to accelerate economic restructuring. Restructuring and improving investment efficiency, especially public investment. Restructuring and expanding potential markets, especially production markets in order to exploit resources effectively”⁽⁴⁾. In addition, it is vital to pay attention to restructuring real estate markets so that land resources can be used effectively. Restructuring industrial, agricultural and service sectors in the direction of prioritizing potential areas with high-tech advantage, high added value, and competitiveness in the context of international economic integration. In particular, the restructuring is said to cover the enterprise system with a view to developing strong domestic businesses, strengthening cooperation between foreign-invested enterprises and domestic ones, thus promoting technology transfer. Also highlighted in the Congress documents is spotlight on developing private sector, making it a truly important driving force of the national economy. It is clearly noted in the documents that “Removing all barriers and prejudices, creating favorable conditions for the private sector; assisting private enterprises to innovate, modernize, improve human resources and working productivity. Encouraging the establishment of giant private economic groups with strength and regional and international competitiveness. By 2030, there will be at least 2 million private enterprises contributing to 60% - 65% of the total GDP”⁽⁵⁾.

In addition, the 13^th Congress also puts stress on beefing up structural shift, improving the efficiency and connectivity among localities and regions; bringing into full play key economic zones; paying attention to remote localities; narrowing development gap between regions.

Continuing to accelerate industrialization and modernization on the basis of science - technology and innovation

In past Party Congresses’ documents, industrialization and modernization were identified as important issues as Viet Nam has been speeding up its industrialization process, soon turning itself into an industrialized country towards modernity. This matter of concern was holistically presented with specific criteria and implementation methods. Inheriting the above contents from previous congresses, the 13^th Congress emphasizes the key tasks that need fulfilling in accordance with domestic and international conditions in the coming time. Especially, it is essential to take advantage of scientific and technological achievements in general, and achievements of the Industry 4.0 in particular. On top of that, it is required to adjust, supplement and perfect economic development strategies, master plans dedicated to sectors, fields and regions in accordance with the country's conditions and scientific and technological potentials. Promoting research, transfer, development, mastery, application of modern technologies; developing a number of key products that are regionally and globally reputed. Enhancing scientific and technological potentials, quality of human resources, laying foundation for promoting and developing the digital economy. The 10-year Socio-Economic Development Strategy (2021-2030 period) emphatically states that, “Stepping up the development of multiple key economic sectors and areas, which have great potentials and advantages to drive economic growth in the spirit of catching up, advancing with and surpassing others in the region and the world in some areas”⁽⁶⁾.

What is new is that industrialization and modernization must be driven by science-technology and innovation, the achievements of the Fourth Industrial Revolution, based on which breakthroughs and leapfrog in a number of industries and fields re generated. Another emerging requirement is that a strong industrial sector, focusing on not only core industries but also new, high-tech industries, must be built, which is expected to provide a boost in productivity, quality and efficiency of the economy. The strategy also clearly estimates that by 2030, industrial sector’s share in the national GDP will increase to over 40%; the added value of the processing and manufacturing industry per capita will reach over $2,000, compared with $900 in 2020⁽⁷⁾.

Additionally, it is noted in the documents that Viet Nam continues to restructure the agricultural industry, developing the rural economy in conjunction with building new rural areas in the direction of green and clean agriculture, ecological agriculture, modern rural areas and civilized rural residents. What strikes out new includes identifying the relationship between ecological agriculture, modern rural areas and civilized rural residents via specific measures such as development policies, science and technology investment, and agriculture-industry-market development strategy.

Regarding the service sector, in the Documents of the 12^th Congress, emphasis was placed on promoting the development of the service sector in the direction of modernity and at a higher growth rate than that of the manufacturing sector and the whole economy. Based on this, the documents of the 13^th Congress emphasize "Strongly developing the service sector on the basis of applying modern scientific and technological achievements, especially high-value-added services”⁽⁸⁾. The Congress also specified a number of services that need to be prioritized. These include tourism, commerce, telecommunications, technology and information, transportation, logistics, technical services, and legal consulting etc. Other tasks involve modernizing and expanding services regarding finance, banking, insurance, securities, healthcare, education and training, science and technology, culture, sports, commerce as well as putting the quality of service provision on bar with international standards.

With regard to marine economic development, the 12^th National Congress particularly emphasized that developing the marine economy was closely linked with strengthening national potentials and protecting national sovereignty over sea and islands, and that energy sector including oil and gas, offshore fishing, fisheries logistics was to focused on. The 13^th Congress provided a comprehensive account of this content, in which marine economy development is executed in close association with national security and defense, economic development associated with the environment and natural disaster prevention and control, with more economic zones, coastal urban areas being built.

Urban development is more concisely concerned in the Documents of the 13^th Congress, focusing on refining mechanisms facilitating urban development and urban economy, paying attention to the construction of civilized and smart cities in accordance with local cultures. It is stated in the documents: “Devising strategies and perfecting mechanisms dedicated to urban development and urban economy as driving forces in each region and locality; strengthening urban management, developing satellite cities, and reducing urban concentration in megacities. Building modern, civilized, and smart cities with diversified and unique architecture and cultural identities in each locality”⁽⁹⁾.

It is obvious that Viet Nam’s urbanization in the coming period will proceed strongly. This acts as momentum for speeding up the cause of industrialization and modernization. However, the documents of the 13^th Congress also clearly states that this process needs to be viewed in a holistic and systematic way, with great focus on the application of modern technology in constructing civilized, ecological urban areas.

Infrastructure construction is believed to be an important point and one of the three strategic breakthroughs in economics. So far, this notion remains true. However, in the coming time, it is necessary to solve focal shortcomings and meet development requirements in the new situation.

Regarding regional and inter-regional economic development, the 12^th National Congress focused on finalizing management mechanisms and strategies, planning and refining policies on state administrative decentralization and assignment of powers, developing a number of special economic zones as major drives for economic growth and experimenting regional development institutions in localities with potential breakthrough. Meanwhile, the 13^th Congress put emphasis on improving the quality of regional planning; renovating and perfecting the institutions for effective regional management; bringing into play regional potentials and advantages; strengthening the connectivity between localities within the region and between regions; rearranging commune-and-district-level administrative units in accordance with local conditions; renovating the mechanism of decentralization, assignment of powers with a clear definition of responsibilities and authority of central and local levels.

The socio-economic development strategy report underscores the work of planning and managing the national territory in an efficient way, making the best use of local advantages and enhancing intra-regional and inter-regional economic connectivity to participate in the global value chain, thus creating new momentum for development. At the same time, the report clearly shows key advantages that need to be prioritized for development in specific regions such as the Northern mountainous region, the Red River Delta, the North Central and Central Coast regions, the Central Highlands, and the Southeast region and the Mekong Delta. Therefore, the issue of regional development and inter-regional connectivity is strongly underlined in the documents of the 13^th National Congress in order to both ensure national development and exploit potentials and comparative advantages of each region.

Continuing to perfect comprehensively and synchronously the socialist-oriented market economy institutions

Building socialist-oriented market economy should be initiated at the time of Doi Moi and serves as a pivotal issue in the course of renovation. Hence, this issue, which has been persistently dominating the Party agenda over the past tenures, should be thoroughly grasped so that awareness and action are united.

Inheriting and developing the concept of socialist-oriented market economy throughout the previous Party congresses, the Political Report of the 13^th Party Congress evaluates the implementation of the Resolution of the 12^th Party Congress as follows. “The perception of the socialist-oriented market economy is increasingly perfected. The legal system, mechanisms and policies continue to be refined to satisfy the requirements of building a modern market economy and international integration. Market factors and types of markets have gradually developed synchronously to integrate into the regional and world markets.”⁽¹⁰⁾.

However, the 13^th National Congress affirmed that Socialist-oriented market economic institutions reveal a number of shortcomings, not to mention redundant, overlapping, or inconsistent laws, mechanisms, policies, regulations. Besides, business environment is not yet favorable and transparent. The mobilization, allocation and exploitation of resources for development yields few noticeable results. Institutions for regional economic development and interregional coordination have not been sufficiently concerned and legalized. Therefore, comprehensive and synchronous perfection of the socialist-oriented market economy institutions in the coming years should focus on the following points.

Firstly, building consensus on and raising awareness of socialist-oriented market economy.

Basing on the previous Congresses, the Political Report of the 13^th Congress stresses the need to continue to form consensus on and raise awareness of the socialist-oriented market economy, and at the same time delves into the essence of the socialist-oriented market economy, as follows. “The socialist-oriented market economy is an economic model that our country embraces in the transition to socialism. It is a modern market economy well integrated in the world, fully and cohesively in line with the laws of a market economy.  It is regulated by a rule-of-law socialist state under the leadership of the Communist Party of Viet Nam; it upholds a socialist orientation towards the goals of “a rich people, a strong country, a democratic, equitable and civilized society”, peculiarly pertinent to the country’s conditions. A socialist-oriented market economy encompasses multiple forms of ownership and multiple economic sectors, of which the state economy plays a key role; the collective economy is constantly consolidated and developed; the private sector is an important engine of the economy; foreign investors are given favorable conditions to grow in accordance with socio-economic development strategies and plans”⁽¹¹⁾.

Thus, the new point of the 13^th Congress Documents includes the essence of Viet Nam's socialist-oriented market economy, and its importance and major embedded issues are elaborated on from the beginning, from which awareness and action are united.

The state-owned economy is affirmed to function as an essential tool for the State to maintain macroeconomic stability, direct socio-economic development, and surmount shortcomings of the market mechanism. This is a vital function of the state economy, and reflects the characteristic feature and superiority of the socialist-oriented market economy.

Collective economy and cooperatives are responsible for providing services to attached members, coordinate production and business, protect the interests of and create favorable conditions for members to improve productivity, production and business efficiency, ensuring sustainable development for all. It is also important to strengthen the connectivity among cooperatives in order to form associations and unions of cooperatives.

The private sector is claimed to be one of the important driving forces for the whole economy and is provided with favorable conditions to thrive in all industries and fields that are not prohibited by law, especially in such highly competitive fields as production, business, and services in which private companies and economic groups are given preferential policies.

The foreign-invested sector makes up an important part of the national economy, thanks to its role in mobilizing investment capital, technologies, modern management methods, and huge potential for exports.

Furthermore, the 13^th Congress clearly defines the relationship between the State, market and society. The new spotlight is the addition of social factors to this relationship. It also clearly specifies the role of the State, market and society in general. Accordingly, the State performs the function of formulating and supervising the implementation of strategies, master plans, plans, mechanisms and policies, and allocating resources in line with the market mechanism. Hence, it is of importance to renovate the State management method in the direction of transferring some social responsibilities to social organizations, and public service provision to private institutions.

Each social organization serves as a bridge connecting its members, and is responsible for coordinating activities, solving problems arising between members, representing and protecting the interests of its members, providing support to its members. They also represent the people’s interests and pass on people’s aspirations to the State. Social organizations play an active role in giving comments on the State’s laws and policies, supervising State agencies, State officials and civil servants working in law enforcement area.

Secondly, concentrating on removing bottlenecks in and improving the quality of socialist-oriented market economy institutions.

It is highlighted that the market economy institutions should be perfected, with focus placed on the need to remove the bottlenecks that are hindering the development of the market economy and to improve the quality of the market economy institutions. Specifically, it is of dire necessity to perfect socialist-oriented market economic institutions, better handle the relationship between the State, market and society, enhance the quality and effectiveness of national governance, formulate and enforce laws, and fully implement strategies, master plans and plans. This is because in the recent transition to a market economy, one of the main obstacles identified is the inconsistent and overlapping laws. In the mean time, the constantly changing context, especially the advent of the Fourth Industrial Revolution gives birth to numerous new industries and professions, so there needs to devise new laws to ensure their development. Therefore, the 13^th Congress holds that, “Building a legal framework, a favorable environment to promote development, start-ups, innovation, digital transformation, and digital economy; supporting and encouraging the emergence of new fields and new business models. Concentrating on amending regulations that are contradictory, overlapping and that hinders economic development. Beefing up the refinement of administrative procedures, decentralization, assignment of powers in association with maintained discipline, defined individual responsibility and increased coordination among all levels and sectors”⁽¹²⁾. Simultaneously, continuing to promote administrative reform in a drastic, synchronous and effective manner, improve the business environment, and ensure fair, equal and transparent competition. “By 2030, Viet Nam will be ranked among top 30 countries in the world in terms of the business environment” ⁽¹³⁾.

Continuing to perfect institutions, fully and synchronously developing market factors and types of markets. Despite previous congresses’ concern over this issue, the 13^th Congress puts stress on consistent implementation of the market price mechanism for goods and services, including basic public services, and on the clear definition of welfare, incentives for production and business. In addition, the Congress continues to emphasize the development of the production market so that they could sufficiently provide resources to expand the consumption market for goods and services, using modern methods of payment on e-commerce platforms. The Congress also puts considerable weight on developing science and technology market and applying technological achievements in financial, monetary, securities and insurance markets. To this end, the Congress sets out requirements for development and entails strict management over the real estate market as well as land-use and home ownership, stating that it is crucial to expand labor market, reform salary and social insurance policies, promote the role of socio-professional organizations in the formation and regulation of market economy, well handle the limitations of the market mechanism, ensure welfare and social security, national defense and security and protect the ecological environment, etc.

Continuing to refine institutions and improve businesses’ performance. For state-owned enterprises, the key task is to speed up the settlement of bad debts, divest capital, equitize and restructure enterprises, promote innovation, improve technology capacity, and renovate management. At the same time, it is crucial to carry on close inspection and supervision so as not to lose or waste the State's capital and assets. The State supports and encourages the development of cooperative economic models, cooperatives, small-and-medium-sized enterprises, household businesses in agriculture. Perfecting mechanisms and policies facilitating the development of the private sector as a driving force for the economy. Developing strong private enterprises in Viet Nam, improving technology capacity, developing human resources, expanding markets, raising workers’ income, improving working conditions and actively participating in social activities, protecting the environment, and fulfilling social responsibilities. Improving efficiency of public private partnership (PPP) projects in the field of infrastructure construction. Prioritizing foreign investment high-tech projects, being prepared for technology transfer, creating conditions for domestic enterprises to thrive and effectively participate in global value chains.

Thus, the Documents of the 13^th Congress pay close attention to institutional issues, from perfecting institutions to abolishing bottlenecks and barriers that hampers the development of the market economy. The Congress underscores the construction and perfection of laws and institutions that formulate market factors, market types and. The ultimate goal is to improve the overall quality of the institutions.

Thirdly, building an independent and self-reliant economy, improving the efficiency of international economic integration

The new and outstanding point is the clear definition of the reciprocal relationship between independence, self-resilience and international integration. Internal strength must be enhanced to be able to successfully integrate and avoid being dependent on one particular partner and market. The documents of the 13^th National Congress details the position of independence and self-resilience the country's economic development guidelines and strategies; developing strong economy; maintaining budget balances, consolidating economic security; continuously enhancing the national economic potential. Multilateralizing and diversifying international economic relations, avoiding being dependent on a market and a partner. Improving the economy's resilience to negative impacts caused by external turbulence; proactively improving the defense mechanisms in line with international commitments to protect the economy, enterprises and domestic market. Diversifying the forms of international economic integration with flexible roadmaps tailored to the country's conditions and goals in each period. Perfecting the legal system in accordance with international agreements and commitments signed. Fostering and training staff and bettering their understanding of international laws, international commerce and investment, which should be dedicated to staff directly working on international economic integration and international dispute settlement, firsthand.

In recent years, Viet Nam has deeply integrated into the world economy. Vietnamese economy's openness is comparatively high with the sum of exports and imports reaching around 200% of GDP. Viet Nam has also participated in a handful of “new-generation” free trade agreements, notably the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Viet Nam Free Trade Agreement (EVFTA), the Regional Comprehensive Economic Partnership (RCEP) agreement and the recent free trade agreement between Vietnam and the UK (UKVFTA). To be eligible for these agreements, Viet Nam has basically perfected its legal system in conformity with international standards and customs. Over-35-year period of Doi moi reveals that openness and international integration make significant contribution to Viet Nam’s present achievements. At the same time, economic openness and deepened international integration motivate the country to undertake reforms. However, the process of renovation and international integration also entails good settlement of the relationship between independence, self-reliance and international integration. For the sake of successful integration, Viet Nam is required to acquire great internal strength, and simultaneously to multilateralize and diversify its partners and markets to avoid risks and dependence. Lessons drawn on from foreign investment shows that it is necessary to assess the effectiveness of investment in the current period to ensure the attraction of modern, environmentally friendly technologies and to promote technology transfer as well as the connection between domestic enterprises and foreign ones.

In summary, the aforementioned additions in the Documents of the 13^th Party Congress in the economic field feature theoretical perception and policy orientation, which is incorporated in assessing the situation and finalizing policies the next period. The focus is on renewing the growth model and restructuring the economy, industrialization, modernization, rapid and sustainable development of the country, perfecting the socialist-oriented market economic institutions and improving international economic integration. These additions are also highlighted in reviewing and evaluating the past congresses, developments of the new context, and the development requirements of the country in the coming period. These are the premises on which the Party base to set out directions, specific development goals and policies so that Viet Nam could achieve its overall development goals for the periods of 2020-2025, 2025-2030, with a vision to 2045./.

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(1) Documents of the 11^th National Congress, National Political Publishing House, Hanoi, 2011, p. 107

(2) Documents of the 12^th National Congress, National Political Publishing House, Hanoi, 2016, p. 88-89

(3), (4) Documents of the 13^th National Congress, National Political Publishing House, Hanoi, 2021, vol. 1, p. 120-121

(5), (6) Documents of the 13^th National Congress, National Political Publishing House, Hanoi, 2021, vol. 1, p. 240, 235

(7), (8), (9) Documents of the 13^th National Congress, National Political Publishing House, Hanoi, 2021, vol. 1, p. 244, 125, 126

(10), (11) Documents of the 13^th National Congress, National Political Publishing House, Hanoi, 2021, vol. 1, p. 59-60, 128-129

(12), (13) Documents of the 13^th National Congress, National Political Publishing House, Hanoi, 2021, vol. 1, p. 132, 224

This article was published in the Communist Review No. 969 (July 2021)