Study On The Problems Of Vietnam's Quality Of Economic Growth

Economic growth is consist of two sides,the first is the quantity of economic growth,the second is the quality of economic growth.In which,the quantity of economic growth is reflected through the scale assessment criteria and income growth rate of the economy;and the quality of economic growth reflects the economic growth in-depth longterm,on the basis of efficient use of growth resources,contributing to economic restructuring and improving social welfare.In order to concretize the criteria for assessing the quality of economic growth,the thesis has analyzed the following six main aspects: effectiveness,stability,harmony,sharing,innovation and sustainability.Based on the six criteria for assessing the quality of economic growth mentioned above,the thesis has analyzed the current situation of Vietnam's economic growth since the economic reforms was initiated in 1986.When analyzing th e effectiveness and stability of Vietnam's economic growth,the thesis analyzes the three main factors which are labor productivity,investment efficiency and total factor productivity.In order to evaluate the contribution of production factors for Vietna m's economic growth,the thesis has used the Cobb-Douglas production function model for analysis and evaluation.Synthesized analysis of the above indicators shows that: Vietnam's economic growth in the past time is mainly characterized by width growth,i.e the growth is mainly based on the increase in annual investment capital;labor productivity is very low;the contribution of total factor productivity(TFP)to economic growth is at the lowest level compared to capital and labor factors;the economic growth rate is relatively high and continuous,but economic growth still remains below potential output.In order to solve these issues,Vietnam must actively reform its economic institutions for attracting foreign investment,and simultaneously it must make effective use of its investment capital,especially avoid loss of capital in public investment.The harmony and sharing of Vietnam's economic growth quality is mainly analyzed through the harmony on economic structure and the inequality level in national income distribution.Vietnam's economic structure has generally shifted towards modernization and achieved good results.However,there are some limitations such as the sectoral structure still has a slow shift;regional structure has not taken full advantage of the potentials in each region;export goods are mainly low value-added goods,accounting for a high proportion in export structure;the investment has been still spreaded and not focused yet.In order to minimize such difficult issues,Vietnam needs to develop a focused economic development strategy,concentrating resources to develop key economic sectors with competitive advantages then influencing other economic sectors' development.With respect to the inequality level in Vietnam's income distribution,it is still on average compared to the world and not in danger of serious social unrest.This is due to the remarkable achievements in poverty reduction in Vietnam.However,the analysis shows that the trend of income inequality in recent years has been tending to increase rapidly.In the coming time,Vietnam needs to continue implementing the poverty reduction policy more effectively.The innovation and sustainability of Vietnam's economic growth are assessed through the institutional innovation,the advances in science and technology,and the efficient use of natural resources as well as the protection of ecological environment.The analysis and evaluation process has shown some restrictions such as: the socialist-oriented market economy institution has not been systematically shaped;the legal system has not been uniform and stable;Administrative reform has not been carried out with drastic measures;The equitisation process of state-owned enterprises is slow with many inadequacies;the science and technology is backward compared to the world,and the investment in technology development is still low,resulting in importing backward technologies,the resources exploitation and environmental pollution are still complicated etc.In resolving these difficult issues,the thesis has focused on the solutions of effective institutional innovation,especially economic institutions.Finally,the thesis has summarized the achievements,restrictions as well as reasons with regard to the quality of Vietnamese economic growth.It also assesses the challenges,opportunities,objectives and orientations for improving the quality of Vietnamese economic growth in the future.Since then,the thesis has provided some solutions to address quality of economic growth.