Socio-Economic Development Strategy to 2020

difficulties and challenges. Specifically, although GDP growth is still relatively high, it is showing a decreasing trend. On the contrary, inflation is always much higher than the average inflation rate of regional and world economies; greatly affecting production, business and people's lives. Production and business of enterprises face many difficulties and challenges; the number of enterprises having to dissolve, temporarily suspend production or reduce production scale has increased significantly; bad debts of credit institutions have increased, some credit institutions have encountered liquidity difficulties; the poverty reduction rate has somewhat decreased, the tendency to re-poverty has appeared, ...

Recognizing the inherent weaknesses of our country's economy, the 11th National Congress of the Party determined that rapid development is associated with sustainable development, sustainable development is a consistent requirement in the Socio-Economic Development Strategy, a basic development viewpoint and growth model innovation, economic restructuring is the general orientation of socio-economic development in the 2011-2020 period. The 3rd Central Conference of the 11th tenure (October 2011) decided on the basic contents of economic restructuring, focusing on prioritizing the restructuring of the 3 most important areas: Investment restructuring with a focus on public investment; restructuring of state-owned enterprises with a focus on state-owned corporations and groups; and restructuring of the financial market with a focus on restructuring the commercial banking system and other financial institutions. To implement the above policy, the Prime Minister has approved the Overall Project on economic restructuring associated with transforming the growth model towards improving quality, efficiency and competitiveness for the 2013-2020 period, focusing on restructuring public investment, credit institutions, corporations and state-owned enterprises.

5.1.2.4. Impact of the global economic crisis

In the process of economic innovation and development, the Vietnamese economy is increasingly integrating deeply into the world economy. World economic integration affects the Vietnamese economy through the market of goods, services and financial markets. For the market of goods and services, import and export turnover has increased sharply in the past two decades. Moreover, Vietnam is a country with a developing economy, so the world economic crisis will affect Vietnam's import and export. With the high interconnectivity of the banking and financial systems, the crisis immediately had a severe impact on powerful economies in Europe and Asia such as Germany. The financial crisis storm originating from the US has severely affected the world economy. England, France, Japan, Singapore, ... The entire world economy was pushed into a serious recession, most countries had negative growth rates. With a very high openness, the impact of the crisis and economic recession on the Vietnamese economy is inevitable. World economic events have a clear impact on stability and growth.

The growth rate of the Vietnamese economy. 2008 has passed with high interest rates and liquidity problems of the credit system, the ongoing decline of the stock market, food and energy price fevers, etc. The world crisis will also affect Vietnam's imports. If the total demand of countries in the world decreases, the possibility of world commodity prices decreasing will have two effects: (1) imported raw materials for production will benefit the Vietnamese economy, (2) but consumer goods that are likely to flood into Vietnam at cheap prices, such as Chinese goods, will compete with Vietnamese goods and thus the demand for Vietnamese goods will decrease.

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5.1.3. Development context of Ho Chi Minh City

5.1.3.1. Socio-economic development strategy to 2020

Economic development strategy

Ho Chi Minh City was affirmed in the Resolution

Decision 16-

Resolution/TW dated August 10, 2012 on the direction and tasks of Ho Chi Minh City's development until 2020: "The city needs to proactively seize opportunities, overcome challenges, maintain political and social stability, restructure the economy, innovate the model and improve growth quality, build synchronous infrastructure, develop the city quickly and sustainably with quality and speed higher than the national average, build a healthy cultural environment; constantly improve the material and spiritual life of the people, ensure security and national defense".

5.1.3.2. Performing the role of a dynamic economic region of the country

Ho Chi Minh City is located in the center of the southern key economic region, an important traffic hub, convenient for exchanges with domestic and international localities. The role and position of the city in the region and the whole country have been determined in Resolution No. 20 NQ/T.Ư of the Politburo on the direction and tasks of developing Ho Chi Minh City and Resolution No. 53 - NQ/T.Ư of the Politburo on socio-economic development, ensuring national defense and security in the Southeast region and the southern key economic region until 2010 and orientation to 2020, which has been increasingly affirmed in many fields: Contribution to the scale and speed of economic growth; State budget revenue; export turnover; total turnover of goods; investment capital mobilization; services, tourism, science - technology; training of human resources for the industrialization and modernization of the region and the country.

With an outstanding advantage over other major cities in the country in terms of economic potential, Ho Chi Minh City plays a pivotal role in the southern key economic region, which generates one-third of the value of industrial output, 30% of the total national budget revenue, more than 30% of the total import-export turnover, and attracts one-third of the total number of FDI projects. In the financial and banking sector alone, the city has a dynamic joint-stock commercial network operating throughout the country, accounting for 30% of total outstanding loans and capital.

mobilized from banks nationwide. In addition, the city also has many other factors, especially a large intellectual team - an important source of high-quality human resources and a system of colleges, universities, research institutes... to become a major industrial, scientific and technological, educational - training, medical and financial center in the region. Located between the East and the Southwest, the city has convenient air routes, seaports, and road systems directly connecting with other countries.

in the region and the world

world. to

hold

maintain the role of economic locomotive

of both

water,

Ho Chi Minh City clearly defines the direction to go, which is to focus on improving growth quality, building synchronous infrastructure, and sustainable development.

5.1.3.3. Impact of global climate change

Alongside rapid growth, two slower, less visible processes are becoming increasingly important for the city’s future. The first is climate change, which is leading to rising sea levels, changing rainfall patterns and increasing average temperatures. The second is subsidence, which is occurring in many parts of the city, making these areas vulnerable to flooding. Particularly since the mid-1990s, the intensity, frequency and duration of flooding have been increasing. The rapid growth of the city, combined with the slow processes of climate change and subsidence, will have a major impact on the economy of Ho Chi Minh City as well as the quality of life of its residents.

A climate adaptation strategy and action plan have been developed, with the goal of: Becoming an industrial center and a multi-industry service center of the region as well as of Southeast Asia, and a major hub of international transportation.

5.1.4. Evaluation of advantages and disadvantages of Ho Chi Minh City

a. Advantages:

Ho Chi Minh City has long had an advantageous position in economic development and is also an important communication hub. Today, that position is increasingly enhanced in the trend of global integration, with its central position in the key economic region of the South and the Mekong Delta, with those advantages, Ho Chi Minh City has become a multi-functional center.

- Industrial center: Ho Chi Minh City is the national industrial center and has a diverse industrial structure including high-tech industries to modern industries.

Tradition is on the way to modernization. Industrial output value of Ho Chi Minh City

accounting for 20% of the national output value, with an average output value increase of 15%, supporting the city's economy to have a growth rate higher than the country's growth rate. After the economic crisis (2008-2010), the city's economy is actively

actively carry out restructuring towards global integration, in order to create opportunities for breakthrough development towards new heights in regional economic competition and towards international competition.

- Service center: Diverse services with many strengths. In the economic structure of Ho Chi Minh City, before 2000, the value of the service industry was behind the industrial sector, but since 2005 that position has been reversed, the service industry structure accounts for 52% of GDP and continues to increase in the following years, compared to the Southern Key Economic Zone, the value of the city's service industry accounts for 70% of the region. Service groups with strengths such as: Finance-banking, insurance, trade, tourism, hotels, restaurants, information and communication, real estate business, education and training, ... these types are growing rapidly and increasingly have a dominant proportion in the economic structure of the city.

- Economic exchange center: A place where road, maritime, air and waterway traffic converges, connecting domestic and international exchanges. Thanks to this strength, the city has become a multi-faceted economic exchange center, contributing significantly to its position as a national economic center, oriented towards the region and the world.

- Cultural center: Ho Chi Minh City has the strong characteristics of a cultural center of a new land: youthful, dynamic, attractive,... along with the combination of tradition and modernity in the development process, that origin creates a city with a diverse and open culture, to approach new things to form a culture rich in identity, modern and integrated.

- Human resource development center: Ho Chi Minh City is a place where labor resources with many levels of expertise, profession and strong competitiveness for self-improvement, stemming from the inherent demands of a dynamic economic environment. Therefore, this human resource is always trained in the face of challenges to seize opportunities to meet the requirements of the modernization process and global economic integration,...

b. Difficulties:

- In the past, the city has mainly grown in production and business in the form of processing and increasing investment capital, with extensive growth, slow internal economic restructuring; production and business efficiency and competitiveness are not high; the proportion of goods and services with high science and technology content and high added value of the city is still low, the competitiveness of many products is still quite weak compared to the region and internationally;

- Ineffective investment, traffic jams, flooding, disadvantages and weaknesses of the administrative apparatus;

- Urban infrastructure is overloaded, high-quality human resources cannot meet the requirements of urban development towards increasing the proportion of added value in the value structure.

Goods, services and institutional capacity are inadequate compared to the requirements of managing the development of a megacity like Ho Chi Minh City.

5.2. Orientation of economic restructuring to promote economic growth in Ho Chi Minh City by 2025

With the role, position and development environment conditions as analyzed above, in the coming period, Ho Chi Minh City's economic growth needs to achieve the goal of both high growth rate and ensuring the improvement of growth quality, ensuring efficiency and improving competitiveness. It is necessary to shift from an economy that develops in breadth, increases scale and is mainly labor-intensive to in-depth development, taking growth quality as the main driving force to develop industries and fields with high scientific, technological and added value content, causing little environmental pollution, towards the development of a knowledge-based economy. Economic growth is mainly based on increasing the quality of input factors on the basis of innovating the economic growth model.

To innovate the growth model and restructure the economy, the top priority and decisive task is to carry out rapid and effective economic restructuring, first of all the economic sector structure. Therefore, determining the relationship model between economic sector structure transformation and economic growth is the right direction for the economic sector structure transformation process, aiming at ensuring improved growth quality and sustainable growth.

The goal of growth model innovation is to focus resources on promoting economic restructuring, rapidly developing industries, industrial products, and services with high science and technology content and high added value; developing high-tech agriculture and ecological agriculture; leading the country in transforming the economic growth model from extensive development to intensive development, ensuring quality, high efficiency, and sustainability.

Based on the theories studied in chapters 1 and 2, evaluating the current situation of relationship analysis in chapters 3 and 4, the thesis identifies the following viewpoints on economic restructuring orientation in the coming time:

- Promote the economic restructuring of the sector towards rapidly increasing the proportion of GDP of the service sector in the total GDP. At the same time, promote the internal restructuring of the technical economic sector towards a value chain approach to focus on developing products, product groups and production and business stages with high added value and competitiveness.

- Regarding service industry development: Focus on developing service industry groups

owner

weak has potential and is the world

city power, dad

location and shape

into comprehensive and specialized centers of commerce, services, education, high-tech healthcare, culture, entertainment, etc. The city strives to become a service center in Southeast Asia, a central urban area of the Ho Chi Minh City Region, and the Southern Key Economic Zone.

- Regarding industrial development: Prioritize the development of industrial sectors.

High-tech industry, clean industry, energy saving, use of new energy, renewable energy, high labor productivity, high value-added content, biotechnology and industrial sectors serving agriculture and rural areas.

- Developing the agricultural sector: Promoting the transformation of the agricultural economic structure towards modern, efficient and sustainable urban agriculture; transforming the structure of crops, livestock and aquaculture towards the characteristics of a large urban area: clean agriculture, not causing environmental pollution, applying high technology, combined with new rural construction.

Based on these viewpoints, the orientation of economic restructuring in the next 10-15 years is determined as:

- Accelerate the restructuring of the economy, including the economic sector structure towards increasing the proportion of the service sector (which is a high value-added sector and an advantage of the city) in GDP and the internal sector structure towards focusing on stages, products, and product groups with high added value and competitiveness. That is, the traditional approach to restructuring the economy is to focus on developing economic-technical sectors with high added value.

Develop and synchronously deploy science and technology strategies to widely apply new scientific and technological achievements to all areas of the city's socio-economic life according to the motto that science and technology are the driving force of development and contribute increasingly to GDP growth.

-In the expected industry structure, there will be a gradual shift from existing industries to high-tech industries and high-end services (such as finance, banking, information technology, telecommunications, etc.). To build Ho Chi Minh City into a large, civilized and modern city in Southeast Asia, a center in a number of fields, with urban infrastructure development on par with major cities in the region, there needs to be a general goal:

- In terms of economy, the city takes services and high value-added industry as its development foundation, taking the lead in developing high-tech agriculture. As the largest economic center in the country, it is a gathering place for business people. Building Ho Chi Minh City into a place that attracts large domestic and foreign economic groups to set up their business headquarters to conduct business activities nationwide and abroad.

in the region; gradually becoming the industrial, financial and commercial center of Southeast Asia. Having an effective and sustainable economic structure, meeting in-depth development.

- Regarding science and technology, building the City into a scientific center

technology

big of all

water and Southeast Asia. City

focus mainly on

Applied research. When the City's scientific potential is large enough, it will conduct selective research in a number of basic scientific fields.

- Regarding education, training and healthcare, the City will be a major center for education, training and healthcare in the country and Southeast Asia. Improve the quality of education in the City to be equal to that of other countries in the region. The City is home to branches of prestigious foreign training institutions in Vietnam.

- Service sector development : Develop 9 sectors: Finance, credit, banking, insurance; transportation , warehousing, port services; post and telecommunications and information technology, communications; property and real estate business; consulting services, science and technology ; tourism; healthcare and high-quality education and training. Strive to increase the added value of the above service sectors to a growth rate higher than the GDP growth rate in the area.

(1) Finance - credit - banking - insurance: Focus on research and development

Building financial institutions, developing financial products and markets. Regarding financial products, modernizing the payment system, encouraging citizens to use the account system and electronic cards in transactions, minimizing cash transactions. Developing derivative financial products of the financial market. In addition to the banking system, promoting the development of the non-bank financial system such as the stock market, investment funds, and insurance organizations. Encouraging the expansion of the market nationwide and initially participating in the international capital market such as listing on foreign stock markets, developing bonds internationally, opening bank branches in neighboring countries such as Cambodia, Laos, etc.

(2) Trade (focus on international trade): Focus on services

export. The city continues to be a major hub for import and export of goods. It is the headquarters of major domestic and international companies. Establish a modern wholesale and retail distribution channel. Prioritize investment in developing e-commerce in the area. Build regional-scale fair and exhibition centers. Build an international trade center and establish a commodity exchange. Develop the city into a national and regional shopping center.

(3) Transportation, warehouse and port system services: Building a modern warehouse and yard system to meet the needs of being a center for road, waterway and river transport. Acting as the main hub for transiting goods for the Southern Key Economic Zone and

Southern region. Build and complete a new port system, roads, and railways; relocate the seaport system out of the inner city. Prioritize calling for investment to build Hiep Phuoc seaport to replace the existing Saigon port, associated with the development of maritime logistics services and the construction of a port city in the South of the city. Make the most of Tan Son Nhat Airport and prepare to connect infrastructure with Long Thanh International Airport in the near future.

(4) Postal, telecommunications and information technology – communications services: Expand the development of remote data processing, processing and management services, associated with telecommunications – information technology – communications services; develop multi-functional services, exploit value-added services on telecommunications networks.

(5) Property and real estate business: Strongly develop housing rental services, office buildings for rent, and real estate and land transaction services. Promote investment in building new urban areas; implement land and construction policies to increase housing supply and financial solutions to stimulate demand.

(6) Consulting, science - technology, research and development services: Support the development of scientific, technological and consulting services to create breakthrough developments in the period of international competition and integration in a number of areas such as technology transfer, intellectual property, productivity and product quality, auditing, business strategy, law, etc. Support scientific research activities and application deployment in production. Focus on developing the fields of design, modeling and advertising; develop the technology market.

(7) Tourism (focusing on international tourism): Develop a strategy to develop the City's tourism brand; link with provinces (focusing on localities such as Lam Dong, Binh Thuan, Khanh Hoa and provinces with tourism potential in the North), the City builds and develops international standard tourist areas. Focus on investing in the City's infrastructure and hotel system, building competitive tourism products, strengthening promotion, investment promotion, and human resource training.

(8) Healthcare: Focus on improving the quality of healthcare services, building a number of high-quality healthcare centers. Build a number of healthcare-ecological centers, combining medical examination and treatment and resorts that meet international standards and are cheaper than those of advanced countries in the region. Continue to socialize the healthcare sector; research and apply the joint-stock hospital model.

(9) Education and training: Strengthen training in two technical and management fields; focus on vocational training, science and technology fields to meet the requirements of industrialization and modernization. Continue to socialize the education and training sector. Encourage international schools and educational institutions to establish branches in the City. Coordinate with central ministries and branches

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