This morning, at the National Assembly session on the 2025 socio-economic performance review and the 2026 development plan, National Assembly Deputy Truong Trong Nghia from Ho Chi Minh City argued that for Vietnam to achieve its goal of becoming a developed country by 2045, it must successfully navigate several risks and challenges, most notably the middle-income trap.
He contends that to avoid this trap, the economy must maintain high growth in the medium to long term while simultaneously achieving high levels of autonomy, resilience, and international competitiveness. He warned that current reports suggest Vietnam is showing signs of approaching the trap.
Key indicators of risk cited include:
- Dual Dependence on FDI: Over-reliance on Foreign Direct Investment in both export and import markets.
- Low Productivity: Labor productivity, localization rates, and added value are low compared to regional peers.
- Financial Instability: Hidden risks remain in finance, banking, capital markets, and the real estate market.
- Human Capital Deficits: A shortage of high-quality human resources, an aging population, and declining birth rates.
- Worsening Environment: The environmental situation continues to deteriorate.
- Widening Inequality: The gap between the rich and the poor is deepening.
- Low Income: Workers' income, including that of officials and civil servants, remains low.
He asserted that the essential solution to avoid the middle-income trap is to shift the growth method and model to focus on knowledge economy, digital economy, green economy, and circular economy.
He warned that failure to do so means Vietnam will lose the opportunity to join the ranks of developed nations in the new era.
A separate, critical challenge is the human factor comprising human resources are the decisive element in the success or failure of any policy, strategy, or law.
Another significant challenge that requires a solution is the human factor, which encompasses the workforce, a decisive element in the success or failure of all policies, strategies, and laws.
Deputy Truong Trong Nghia has proposed a groundbreaking decision regarding the income and benefits of this workforce, based on the principle that "the salaries of officials and public employees must align with the average living standards of society, allowing them to focus on their duties without needing to take on additional work to support their livelihoods." It is unacceptable for them to belong to the impoverished class of society.
Alongside the increase in income, it is essential to establish reasonable KPIs, implement appropriate rewards, and enforce strict penalties for KPI compliance, in conjunction with other reasonable benefits, said NA Deputy Truong Trong Nghia.
He also believes that to thrive in the current era, training and attracting talent is an urgent and mandatory necessity.
Meanwhile, National Assembly Deputy Mai Thi Phuong Hoa from Ninh Binh emphasized the issue of restructuring the legal system in the current period. According to her, at certain times, legal normative documents were drafted and developed in a spontaneous manner, failing to truly adhere to the basic principles of the legal system. This has led to conflicts, overlaps, and the creation of bottlenecks that hinder development.
Amid the demand for the country's breakthrough development in the period from now until 2045, the effort to implement the streamlining of the political system's apparatus, and the adoption of the two-tier local government model, the Deputy believes that restructuring the legal system is necessary.
