Objectives and leap forward in socio-economic development

The recent 10th National Party Congress has adopted overall goals for socio-economic development for the next five years as follows: “Speeding up economic growth, achieving an important change in raising efficiency and in sustainability of development, thus quickly bringing the country out of the status of an under-developed nation.Improving noticeably people’s material, cultural and spiritual life. Accelerating national industrialisation and modernisation and developing a knowledge-based economy, laying a firm foundation for Vietnam to basically become a modern industrial nation by 2020...

Among those overall goals, there are two important landmarks. First, by 2010, getting the country out of underdevelopment. Second, by 2020, basically turning the country into a modern industrial nation. These landmarks constitute two phases of development, two major steps forward in the process of national industrialisation and modernisation.

Foundation laid by past achievements

The question is from which ground has the 10th National Party Congress based on to propose such goals? The answer comes from the past decades of the process of modernising and industrialising the country and the Party’s concept of “taking the country out of underdevelopment”.

Right after the reunification of the country, in 1976, the 4th National Party Congress initiated a guideline for socialist construction for the whole country, in which, industrialisation was considered to be the central task of the transitional period. However, for many reasons, objective and subjective alike, despite certain progress, the country was plunged into long, severe socio-economic crisis. In 1986, with the line for comprehensive renovation, the 6th National Party Congress put forth a task to overcome consequences of the crisis (although it was then not yet referred to as a crisis), to stabilise various socio-economic aspects, continue to develop necessary premise for accelerating socialist industrialisation in the next stage of development. Then with major achievements of the 10 years’ renovation through the 7th Party Congress (1991) and the 8th Party Congress (1996), the Party came to the conclusion: Vietnam already came out of the 15-year-long severe socio-economic crisis, created some necessary conditions to move to the next stage of development: boosting national industrialisation and modernisation. So as of 1996, Vietnam actually embarked on the phase of accelerating industrialisation and modernisation. In 2001, the 9th National Party Congress set out the “10-Year- Strategy for socio economic development 2001-2010”, under which, by 2010, the country will have basically got out of underdevelopment and lay a foundation to basically become a modern industrial nation by 2020.

So is it likely that the overall goals for socio-economic development set out by the 10th National Party Congress only reassert the objectives of the 10-year Socio-economic Development Strategy for 2001-2010? Although there are no differences in expressing the ideas, certain things are to be highlighted.

First, as far as the timing is concerned, the 10th National Party Congress set an objective to soon get the country out of its under-developed status, indicating that this should be achieved before 2010.

Second, the concept of “underdeveloped status” could be comprehended in a broader sense, not necessarily low capita income but also low human development index and backward socio-economic infrastructure.

Third, norms and criteria on a modern industrial country are interpreted more profoundly, in tandem with world indicators in the stage for knowledge-based economy.

With regard to the ground for the 10th National Congress to set overall goals and objectives, it can be asserted that the foundation has been laid from the achievements by implementing the resolution of the 9th National Party Congress adopted five years before and the overall 20 years of renovation.

Evaluating the progress in the past five years, the 10th National Party Congress states that Vietnam’s socio-economic development in the 2001-2005 period recorded very important achievements but still below the country’s capacity.

Such achievements can be characterised by fairly high economic growth, economic structure being adjusted towards industrialisation, modernisation; social capital increasing fast, the institution of a socialist-oriented market economy beginning to take shape with stable macro economic development. In the meantime, international economic performance and external economic relations have made important progress alongside socio-cultural development and improving human development index...

There are figures and data to back up realities. The Gross Domestic Product (GDP) for the 2001-2005 period increased by 7.51% on average. In 2005, GDP accounted for VND 838,000 billion (or US $52.4 billion) with annual per capita income of about $640. Of the GDP structure, industry and construction increased from 36.7% in 2000 to 41% in 2005 (as against the planned 38-39% ratio); Agriculture and forestry ratio dropped from 24.5% to 20.9% (against the plan of 20-21%); Service ratio stood at 38.1% (against the planned 41 – 42%)

2005 saw the maximum growth in the 2001-2005 period. All indicators in production, construction, service, import-export, social-cultural development... were the highest by far. For example, food output reached 39.5 million tones; coal exploited reached 32 million tones; commercial electricity output as high as nearly 46 billion kWh; oil equivalent accounted for nearly 26 million tones; export turnover stood at US $32.2 billion, accounting for more than half of GDP. Households living under the poverty line (by Vietnam’s standard for the 2001-2005 period) dropped from 17.5% in 2001 to 7% in 2005. Average lifespan of the population increased from 67.8 (2001) to 71.5 (2005)

However, there are reasons to say that such achievements are still lowwer than expected. There remain weaknesses in social-economic development and low competitiveness. Economic growth rate in the past five years was still lower than the country’s actual potential and much lower than several other regional countries in the process of industrialisation. Economic scale was still small with low per capita income. Economic restructure remained low. The socio-economic structure could hardly meet development needs. There remain many problems in social, cultural aspects that are slow to be solved...

So high potentials remain untapped. In reality, both internal and external resources, have not been made full use. Management and administration could have made more progress.

On the whole, socio-economic achievements in the 2001-2005 period have contributed significantly to the general progress of the 20 years of renovation in Vietnam. Such merits have helped give a facelift to the country, raising the country’s profile in international arena. This has laid a foundation for the 10th National Party Congress to publish lines and policies to take the country out of underdevelopment before 2010 as mentioned before.

Leap by 2010 and preparations for leap by 2020

The leap by 2010 marks an end of the Strategy for socio-economic development between 2001 and 2010, the initial stage of accelerating industrialisation and modernisation in the country to embark on the following 10-year stage till 2020 for socio-economic development. That is a qualitative leap forward, taking Vietnam from the state of underdevelopment to a higher level of development. Or in other terms of the World Bank, from the low income brackets (estimated at $950/person by 2010) to the average income brackets (over $950/person/year).

The overall goals on socio-economic development  between now and 2010 have been made clear already from the beginning of this article. To realise these goals, the Party, State and people have the tasks of trying by all means to bring into full play achievements and advantages while minimising weaknesses and deficiencies, making full use of resources to further steps of development. Major tasks for this period include the following:

1.     Liberate and develop vigorously production forces, fully tapping all potentials and resources to create a breakthrough in infrastructure construction and economic restructuring, increasing quality and competitiveness, getting the country out of the low income brackets.

2.     Transforming into the market economy, abiding by principles of the market mechanism, establishing different forms of market and mechanisms of socialist orientation suited to Vietnam’s conditions.

3.     Proactively expanding international economic integration, external economic relations to link to heightening economic independence and self-reliance.

4.     Developing vigorously science and technology, education and training; raising quality of human resources, meeting the needs of industrialisation and modernisation and development of a knowledge-based economy.

5.     Creating a swift change in cultural, moral and lifestyles development; containing population growth, improving people’s physique and healthcare as well as the environment.

6.     Practicing social progress and equality, generating employment, encouraging honest means to create wealth; reducing hunger and poverty; developing social security and welfare system; warding off social evils.

7.     Reinforcing the bloc of great national unity, promoting democracy, raising efficiency of a socialist rule-of-law State, making positive change in administrative reforms, preventing and wiping out red tape, corruption and wastefulness.

8.     Strengthening national defence and security, creating social-political stability, expanding external relations, maintaining a peaceful and stable environment, creating favourable conditions for national construction and defence.

The 10th National Party Congress has also proposed the following indicators and orientations:

Economy: Average GDP for the next five years is expected to reach 7.5-8% per annum and eventually more than 8% annually; GDP by 2010 will increase by 2.1 times compared to that of 2000. Per capita income reaches about US $1,050-1,100.

By 2010 structure by sector in the GDP may be 15-16% for agriculture; 43-44% for industry and construction; service by 40-41%. Total export turnover increases by 16% per year. State budget from GDP will grow by 21-22%. Social inputs will account for 40% of GDP.

Society: By 2010, population growth rate would stand at 1.14%; Agricultural workforce would account for less than half of the total labour force. In the next five years, employment would be generated for some 8 million people. By 2010: the rate of poor households (by new norms) would drop to 10-11%. Secondary school education would be universalised; striving for 200 university and college students out of every 10,000 people; Employees or labourers having undergone training would account for 40% of the total social workforce. There will be seven doctors out of 10,000 people. Mortality rate for children under one year of age would be 16 per thousand. Average life expectancy is 72.

Environment: By 2010, forest cover would be 42-43%; 95% of urban population and 75% of rural population will have access to safe water; 100% of new production establishments shall apply clean technology or be equipped with devices to lessen pollution or to treat waste...

It’s a fierce struggle to implement resolutions of the 10th National Party Congress in general and socio-economic development in particular. The country is facing both major opportunities and challenges.

The leap forward by 2010 has been prepared from five years implementing the resolutions of the 9th National Party Congress and 20 years of renovation. The leap by 2010 would lay the groundwork for the leap by 2020. Getting the country out of an underdeveloped status by 2010 and basically making it a modern industrial nation by 2020 should be realised as soon as possible. To this end, in the next five years, the country will go out of its way, gather all its mind and main to successfully create the leap by 2010.

                                                                   By HA DANG


 


Nhan Dan