Economic growth models innovation an essential step for sustainable development: Experts

Vietnam must continue to innovate its growth model by focusing on high technology, supporting innovative startups, and transitioning to a green economy, according to experts.

Last week, Politburo member and Prime Minister Pham Minh Chinh, head of the sub-committee for socio-economic affairs of the 14th National Party Congress, slated for early 2026, chaired the third meeting of this sub-committee.

Prime Minister Pham Minh Chinh visits the Vietnam International Innovation Expo 2023 (VIIE 2023) in Hanoi last October. (Photo: VNA)

The event reviewed the sub-committee’s work since its last meeting and discussed a draft report on the first five years of implementing the 2021-2030 socioeconomic development strategy. The meeting also considered draft orientations and tasks for socioeconomic development during 2026-2030, ahead of their submission to the Politburo and the 10th session of the current 13th Party Central Committee.

In his address, the PM emphasised that economic development remained the central priority. He called for revitalising traditional growth drivers while vigorously advancing new sources of growth.

At the annual World Economic Forum (WEF) in Dalian, China, in June, PM Chinh highlighted Vietnam’s journey of innovation, integration, and development. He said that the country will continue prioritising growth through flexible policies suited to the country’s conditions, circumstances, and global trends.

Assoc. Prof. Bui Quang Tuan, former director of the Vietnam Economic Institute, noted that Vietnam was widely recognised for its robust economic growth. In the first half of 2024, the economy posted a significant GDP growth rate of 6.42% compared to the same period in 2023, with forecasts suggesting nearly 7 per cent growth by year-end. This marks the fourth consecutive quarter of surpassing expectations.

Vietnam's economic expansion is driven by various sectors, including agriculture, forestry, fisheries, services, industry, and construction. Emerging contributors like the digital economy, total factor productivity (TFP), labour productivity, and green economy are also playing key roles in boosting GDP grow

However, he warned that Vietnam’s economic growth still relied on an outdated model, with a growing dependence on capital and human resources while the contribution of TFP and labour productivity was gradually diminishing. Investments remained the primary driver of growth, with human capital playing a more crucial role than mere labour input, Tuan said./