REVIEW
of
FINANCE -
Feb. 2018
9
the Government managed macroeconomics by
improving business environment and national
competitive advantages. The socio-economic
results in 2017 experienced positive changes,
macroeconomic indicators had been achieved and
economic growth was at 6.81%. This was the result
of continuous attempt in playing tectonic role of
the Government.
Thirdly,
the implementation of tectonic role of
the government for economic growth contributed
to change the operation of the Government itself,
the Prime Minister and other members of the
Government.
On the basis of fundamental changes in
perception and vision of the Government in
moderating economy, the Government emphasizes
the role and responsibilities of ministers, heads or
presidents of ministerial agencies. The members
of the Government should spend time on
building laws, instructions and administering by
mechanisms, policies, strategies and plans. With
such vision, ministries, sectors and local authorities
are required to contruct a detailed action plan
to realize Resolution 35/NQ-CP on enterprise
support and development (16th May 2016). This
mechanism liberates enterprises from difficulties.
Fourthly,
the attemp of Vietnam’s Government
in facilitating enterprises has been recognized by
international communities. For the period of 2012-
2014, Vietnam ranked 98-99 among 189 countries
by the indicators of advantageous business
environment. However, since 2015, this rank has
been changed spectacularly. In 2015, Vietnam
The government does that by increasing human
and social capitals. Human capital is increased by
reforms and improvement of education system
consisting vocational training, primary and
secondary training and higher education training.
Social capital is raised by preserving and creating
new traditional values.
Achievements in economic growth of Vietnam
Firstly,
economic growth is reflected consistently
in perception and thougth of the government.
In a resolution of the Government’s regular
meeting in April 2016, the Prime Minister
emphasized: “The Government determined on
actions to renovate management model, eliminate
the order and administrative approaches, building
a government of transparence and integrity, a
tectonic government for development”. This view
was completely suitable as the government focused
on building constitution, policies to facilitate
business operations. This transformation had
strategic implications about the role of government
in a communist market economy. It means the
government is aware that the goals of economic
growth are hard to achieve without an equal,
transparent and removal of barriers to enterprises.
Secondly,
the tectonic role for economic
growth has been intergrated in macroeconomic
management changes of the Government.
The government of Vietnam sent a strong
message in macroeconomic management when not
trading off sustainable and practical development
goals for the short-term achievements. In 2017,
TABLE 1: THE OPERATION OF FUNDAMENTAL CONCEPTS OF TECTONIC GOVERNMENT
Concepts
Dimensions
Variables
Indicators
Tectonic
Government
Vision and
establishment
of targets
National economic goals
Economic goals, indicators and related policies
Creating competitive
advantages
Investment
Investment (economic
and social) in major
industries (on the basis
of social savings)
Market management
Institutionalize the tight coordination beween private
sector to enhance investment into major industries,
powerful industrial policies and selective tax support.
Effective state institutions
Public administrative agencies
Economic
transformation
Economic growth
(sustainable)
Rational economic policies, GDP growth,
creativity in major industries.
Social
transformation
Human and social capital
Including distant learning (admission ratio),
access to correspondent services.
Source: Summarized by the author
