{"id":75172,"date":"2025-04-11T14:29:00","date_gmt":"2025-04-11T07:29:00","guid":{"rendered":"https:\/\/neu.edu.vn\/long-term-investment-resources-must-come-from-the-private-sector-prof-dr-pham-hong-chuong-and-assoc-prof-dr-pham-the-anh\/"},"modified":"2025-04-11T14:29:00","modified_gmt":"2025-04-11T07:29:00","slug":"long-term-investment-resources-must-come-from-the-private-sector-prof-dr-pham-hong-chuong-and-assoc-prof-dr-pham-the-anh","status":"publish","type":"post","link":"https:\/\/neu.edu.vn\/en\/long-term-investment-resources-must-come-from-the-private-sector-prof-dr-pham-hong-chuong-and-assoc-prof-dr-pham-the-anh\/","title":{"rendered":"‘Long-Term Investment Resources Must Come from the Private Sector’: Prof. Dr. Pham Hong Chuong and Assoc. Prof. Dr. Pham The Anh"},"content":{"rendered":"

Speaking at a recent event, Prof. Dr. Pham Hong Chuong<\/strong>, President of National Economics University (NEU), said that 2024 could be considered a dynamic year marked by significant transformations. The real economy showed many signs of recovery, with full-year GDP growth reaching 7.09%, exceeding the Government’s target of 6\u20136.5% and significantly outpacing other countries in the region.<\/h2>\n

Over the past year, Vietnam also continued to integrate more deeply into the global economy, with total merchandise exports and imports estimated at USD 786.29 billion, equivalent to approximately 165% of GDP. The foreign direct investment (FDI) sector continued to overshadow the domestic sector, accounting for 71.7% of total exports and 63.2% of total imports. However, the FDI sector’s contribution to value added in the economy remained incommensurate with its scale.<\/p>\n

Meanwhile, many domestic enterprises continued to face difficulties and were unable to establish links with the FDI sector that would enable them to participate more extensively in global production networks.<\/p>\n

For these reasons, Prof. Dr. Pham Hong Chuong described the target of 8% GDP growth in 2025, followed by higher growth in subsequent years, as challenging in the current context.<\/p>\n

According to Prof. Dr. Pham Hong Chuong, maintaining sustainable growth over the long term requires not only harnessing traditional growth drivers but also, crucially, developing an appropriate system of economic and political institutions.<\/p>\n

He argued that an inclusive institutional system provides an important foundation for a fully functioning market economy and encourages the vast majority of people to participate in economic activities.<\/p>\n

He also cited research from the publication “Vietnam Annual Economic Review 2024,” in which experts noted that reforms to Vietnam’s institutions and business environment were proceeding with unprecedented urgency. In particular, the publication assessed that achieving the 8% growth target in 2025 would be an immense challenge because of numerous domestic and international factors.<\/p>\n

The publication therefore offered several recommendations, including opening the capital market while safeguarding financial security, expanding investment opportunities for domestic private enterprises, and continuing to implement proactive and flexible monetary policy in close coordination with fiscal policy to control inflation. It also called for removing institutional bottlenecks to accelerate the disbursement of public investment capital.<\/p>\n

\n
\n
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The target of 8% GDP growth in 2025 is challenging<\/figcaption><\/figure>\n<\/p><\/div>\n<\/p><\/div>\n

Discussing the target of 8% GDP growth in 2025, Assoc. Prof. Dr. Pham The Anh<\/strong> of NEU said that efforts must focus on promoting domestic growth drivers and that long-term investment resources must come from the private sector.<\/p>\n

The expert said that the new U.S. tariff policy would affect Vietnam’s merchandise exports to that market. In addition, the rules of the free-trade “game” are changing, with countries introducing new tariff policies and major economies adopting unpredictable trade policies. This indicates that Vietnam faces numerous risks because its economy is heavily export-oriented.<\/p>\n

Assoc. Prof. Dr. Pham The Anh also said that exports, investment, and consumption\u2014the three aggregate-demand drivers of growth in 2025 and subsequent years\u2014would be affected.<\/p>\n

He explained that, for exports, the world would still face higher tariffs when new tariff policies took effect, even if that happened in 90 days following negotiations. Vietnam’s export growth driver would therefore certainly be affected. This would also have some impact on FDI flows.<\/p>\n

In addition, consumption, a near-term domestic growth driver, is also being affected. Shortcomings in personal income tax, slow income growth, rising living costs, and high housing market prices, among other factors, have constrained consumption. This bottleneck therefore needs to be removed to promote growth through domestic consumption.<\/p>\n

For private investment, the investment environment cannot be based on a one- to two-year horizon; attracting private investment requires macroeconomic foundations accompanied by stable, consistent policies over the long term. However, domestic enterprises still face many difficulties. A better business environment must therefore be created, supported by an institutional framework that remains stable over many years.<\/p>\n

Regarding public investment, the expert said that removing legal risks and clearing obstacles to public investment projects would provide momentum for economic growth. However, public investment would only partially offset negative external impacts.<\/p>\n

In his view, public investment cannot serve as a long-term growth driver. Long-term investment resources must come from the private sector rather than public investment, because public investment is very small relative to the economy, and the budget is not sufficiently ample to provide high levels of funding for these projects. This means that improving the business environment, making legal procedures transparent, and removing administrative barriers are necessary to unlock private capital flows and translate them into real growth.<\/p>\n

“Achieving double-digit GDP growth or growth above 8% is very challenging and risky, because ‘forcing disbursement’ is unlikely to be effective in attracting private investment,” said Assoc. Prof. Dr. Pham The Anh.<\/p>\n

Linh Dan<\/p>\n

Link: https:\/\/vietnamfinance.vn\/pgsts-pham-the-anh-nguon-luc-dau-tu-dai-han-phai-den-tu-tu-nhan-d125049.html<\/a><\/p>\n

This is an automated translation. If you notice any errors, please contact the Department of Communications, National Economics University at phongtruyenthong@neu.edu.vn<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Speaking at a recent event, Prof. Dr. Pham Hong Chuong, President of National Economics University (NEU), said that 2024 could be considered a dynamic year marked by significant transformations. The real economy showed many signs of recovery, with full-year GDP growth reaching 7.09%, exceeding the Government’s target of 6\u20136.5% and significantly outpacing other countries in the region. Over the past year, Vietnam also continued to integrate more deeply into the global economy, with total merchandise exports and imports estimated at USD 786.29 billion, equivalent to approximately 165% of GDP. The foreign direct investment (FDI) sector continued to overshadow the domestic sector, accounting for 71.7% of total exports and 63.2% of total imports. However, the FDI sector’s contribution to value added in the economy remained incommensurate with its scale. Meanwhile, many domestic enterprises continued to face difficulties and were unable to establish links with the FDI sector that would enable them to participate more extensively in global production networks. For these reasons, Prof. Dr. Pham Hong Chuong described the target of 8% GDP growth in 2025, followed by higher growth in subsequent years, as challenging in the current context. According to Prof. Dr. Pham Hong Chuong, maintaining sustainable growth over the long term requires not only harnessing traditional growth drivers but also, crucially, developing an appropriate system of economic and political institutions. He argued that an inclusive institutional system provides an important foundation for a fully functioning market economy and encourages the vast majority of people to participate in economic activities. He also cited research from the publication “Vietnam Annual Economic Review 2024,” in which experts noted that reforms to Vietnam’s institutions and business environment were proceeding with unprecedented urgency. In particular, the publication assessed that achieving the 8% growth target in 2025 would be an immense challenge because of numerous domestic and international factors. The publication therefore offered several recommendations, including opening the capital market while safeguarding financial security, expanding investment opportunities for domestic private enterprises, and continuing to implement proactive and flexible monetary policy in close coordination with fiscal policy to control inflation. It also called for removing institutional bottlenecks to accelerate the disbursement of public investment capital. The target of 8% GDP growth in 2025 is challenging Discussing the target of 8% GDP growth in 2025, Assoc. Prof. Dr. Pham The Anh of NEU said that efforts must focus on promoting domestic growth drivers and that long-term investment resources must come from the private sector. The expert said that the new U.S. tariff policy would affect Vietnam’s merchandise exports to that market. In addition, the rules of the free-trade “game” are changing, with countries introducing new tariff policies and major economies adopting unpredictable trade policies. This indicates that Vietnam faces numerous risks because its economy is heavily export-oriented. Assoc. Prof. Dr. Pham The Anh also said that exports, investment, and consumption\u2014the three aggregate-demand drivers of growth in 2025 and subsequent years\u2014would be affected. He explained that, for exports, the world would still face higher tariffs when new tariff policies took effect, even if that happened in 90 days following negotiations. Vietnam’s export growth driver would therefore certainly be affected. This would also have some impact on FDI flows. In addition, consumption, a near-term domestic growth driver, is also being affected. Shortcomings in personal income tax, slow income growth, rising living costs, and high housing market prices, among other factors, have constrained consumption. This bottleneck therefore needs to be removed to promote growth through domestic consumption. For private investment, the investment environment cannot be based on a one- to two-year horizon; attracting private investment requires macroeconomic foundations accompanied by stable, consistent policies over the long term. However, domestic enterprises still face many difficulties. A better business environment must therefore be created, supported by an institutional framework that remains stable over many years. Regarding public investment, the expert said that removing legal risks and clearing obstacles to public investment projects would provide momentum for economic growth. However, public investment would only partially offset negative external impacts. In his view, public investment cannot serve as a long-term growth driver. Long-term investment resources must come from the private sector rather than public investment, because public investment is very small relative to the economy, and the budget is not sufficiently ample to provide high levels of funding for these projects. This means that improving the business environment, making legal procedures transparent, and removing administrative barriers are necessary to unlock private capital flows and translate them into real growth. “Achieving double-digit GDP growth or growth above 8% is very challenging and risky, because ‘forcing disbursement’ is unlikely to be effective in attracting private investment,” said Assoc. Prof. Dr. Pham The Anh. Linh Dan Link: https:\/\/vietnamfinance.vn\/pgsts-pham-the-anh-nguon-luc-dau-tu-dai-han-phai-den-tu-tu-nhan-d125049.html This is an automated translation. If you notice any errors, please contact the Department of Communications, National Economics University at phongtruyenthong@neu.edu.vn.<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[724],"tags":[],"class_list":["post-75172","post","type-post","status-publish","format-standard","hentry","category-economic-information","post-no-thumbnail"],"acf":[],"_links":{"self":[{"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/posts\/75172","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/comments?post=75172"}],"version-history":[{"count":0,"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/posts\/75172\/revisions"}],"wp:attachment":[{"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/media?parent=75172"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/categories?post=75172"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/tags?post=75172"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}