Chuyển đổi mô hình tăng trưởng kinh tế của thái lan và malaysia sau khủng hoảng kinh tế toàn cầu và bài học cho việt nam tt tiếng anh

VIETNAM ACADEMY OF SOCIAL SCIENCES
GRADUATE ACEDEMY OF SOCIAL SCIENCES

DANG THANH CHUNG

TRANSFORMATION OF ECONOMIC GROWTH MODEL OF
THAILAND AND MALAYSIA AFTER THE GLOBAL ECONOMIC
CRISIS AND IMPLICATIONS FOR VIETNAM

Major: International Economics
Code: 9.31.01.06

ABSTRACT
Ph.D THESIS OF INTERNATIONAL ECONOMICS

HANOI - 2020


Thesis is completed at
Vietnam Academy of Social Sciences

Science supervisors: 1. Assoc. Prof. Dr. Dinh Cong Tuan
2. Dr. Duong Trung Kien

Examiner 1: Prof. Dr. Do Duc Binh

Examiner 2: Assoc. Prof. Dr. Pham Quy Long

Examiner 3: Assoc. Prof. Dr. Nguyen Van Dan

Thesis is to be defended at academy-level thesis appraisal council

assembled
at………..….o’clock…………,
dated………month……….year……………..

Reference of this thesis is available in:


INTRODUCTION
1. Necessity of the thesis
The implementation of transformation of economic growth model during
development process is an indispensable mission of any country when the
old economic model, which was based on the old resources, old economic
execution measures and resource distribution, old economic management
and national governance is no longer suitable. This is relevant with all
countries and is not an exception for Vietnam. During that process, all
countries need to know how to exploit success and failure lessons of each
other so as to successfully implement the transform of economic growth
model, creating new economic growth model with better productivity,
quality and competition capability. In this respect, in Vietnam today, when
the growth model based on large scale, with outdated growth motives no
longer with new development context, it is necessary to implement
economic growth model transform as a necessity if the country expects to
accomplish new economic achievements. This process requires internal
efforts but also need to refer to experience of other countries, especially
countries with similar development level such as Malaysia and Thailand.
Before and after the global economic crisis (in 2008), like other ASEAN
countries, Malaysia and Thailand pursued different economic growth model
reform and programs. Each transformation program has its own objectives,
orientations and specifications depending on flaws of that model,
favourable and difficult economic, politic and social conditions ò each

country. Practice of economic growth model in both Malaysia and Thailand
has gained certain achivements in terms of speed and quality of economic
growth. However, practice of transforming economic growth model of
Malaysia and Thailand is said to contain certain failures, in which the most
important is the transform process from width economic growth model to
depth model in these countries executed to achieve rapid growth by all
means bringing about social, environmental consequences and even
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macroeconomic instability. At the same time, behind the differences, the
peculiarities of each national program on the transformation of economic
growth models of the two countries, there are very basic similarities
showing the trend of renewing economic growth models, common practice
of the world and the region. Therefore, lessons learned from the
transformation of economic growth models after their global economic
crisis, both successful and unsuccessful lessons, are very useful for
Vietnam. Although Vietnam is not in the "storm heart" of the global
economic crisis, it also affects every aspect of the socio-economic life of
the country and in recent years, the economy has revealed a number of
failures, suggesting a need for a change in economic growth model.
In that transition, the study, learning of successful experiences and the
lessons of failure of other countries - especially those sharing more or less
the common characteristics of culture, geography, Ethnic groups in
Southeast Asia such as Thailand and Malaysia are extremely necessary for
Vietnam. In order to better solve the problems posed in transforming the
economic growth model such as: Why must the economic growth model be
transformed? What model of economic growth are we pursuing? Is the
model really suitable and can be developed sustainably? How to transform
the economic growth model successfully? The research and learning

experience of countries like Thailand and Malaysia is very necessary.
That is why the PhD student chose the topic: "Transformation of the
economic growth model of Thailand and Malaysia after the global
economic crisis and lessons for Vietnam" as a research topic for the PhD
thesis of Economics.
2. The purpose and task of the thesis research
2.1. Research purposes
On the basis of analyzing and assessing the status of changing the
economic growth model in two selected countries, Thailand and Malaysia,
the thesis draws lessons learned. At the same time, he also proposed
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implications for the transformation of Vietnam's economic growth model in
the coming time.
2.2. Research mission
- Clarify theoretical and practical issues on the model of economic growth
and transformation of the model of economic growth.
- Analyze and evaluate the transformation of economic growth model in
two selected countries, Thailand and Malaysia after the global economic
crisis; Draw lessons learned and implications for Vietnam.
- Analyze and assess the impacts of the global economic crisis and the
current economic growth model in Vietnam.
- From the lessons learned about transforming the economic growth model
in Thailand, Malaysia and the practices in Vietnam, proposing implications
for Vietnam to successfully transform the economic growth model.
3. Object and scope of the thesis
3.1. Subject of the thesis research
The object of the thesis is the issue of changing the economic growth model
of Thailand, Malaysia and Vietnam after the global economic crisis.

3.2. Scope of the thesis research
- In terms of content: The thesis limits the content of research on
transformation of economic growth model. Objects of research focus on the
effects of the global economic crisis on the economic growth models of
countries including conditions, motivating factors, transformation measures
and the results of the transformation of their economic growth models after
the global economic crisis.
- In terms of space: The thesis focuses on researching and changing
economic growth model in two selected countries, Thailand, Malaysia and
Vietnam.
- In terms of time: The dissertation studied in the scope of time before,
during and after the global economic crisis in 2008-2009 to identify the

3


causes, purposes, conditions and measures to change the economic growth
model in Thailand, Malaysia and Vietnam.
4. Methodology and research methods of the thesis
4.1. Methodology and research methods of the thesis
The thesis applies dialectical materialism and historical materialism of
Marxism-Leninism in the study of socio-economic issues. The research
approach of the thesis is a qualitative research approach.
4.2. Specific research methods
- The method of data collection: Data used in the thesis are mainly
exploited from secondary sources, such as published figures such as
Statistical Yearbook, reports of competent agencies, books, journals. learn
... and other references.
- Methods of data collection and processing: These methods include
descriptive statistics, comparisons, forecasts, and expert consultations.

- The logical and historical methods, analysis and collection are used in
the thesis to analyze and clarify the theory of economic growth model and
transform economic growth model; the impact of the global economic crisis
to the transformation of economic growth models and practical research on
the transformation of economic growth models after the global economic
crisis of selected countries.
- Comparative method: This method is used to compare reality of
changing economic growth model in countries in the region. At the same
time, it is used to compare growth stages of a country.
- Methods of generalization and concretization: This method helps the
Ph.D candidate propose directions and solutions to help Vietnam continue
to implement well the economic growth model transformation in the
following years.
5. New contributions to the science of the thesis
- The dissertation stated, analyzed and evaluated the impacts of science and
technology on economic growth models of Thailand, Malaysia and
4


Vietnam, on that basis, clarifying the reasons and the need for transforming
economic growth models, economic growth of these countries.
- The dissertation presented, analyzed and clarified the reality of
changing the economic growth model of Thailand and Malaysia, including
the purpose, measures, and conversion results; evaluated successes and
failures in transformation and draw lessons for Vietnam.
- The thesis has analyzed and evaluated the reality of changing the
economic growth model in Vietnam after the feasibility study. Based on the
lessons learned, the thesis proposes the implications for transforming the
economic growth model in Vietnam in the coming time.
6. Theoretical and practical meanings of the thesis

The results of the thesis will be of reference for theoretical and practical
basis for researchers who are interested in economic growth models and
transformation of economic growth models in general and in other
countries: Thailand, Malaysia and Vietnam in particular.
At the same time, contributing to perfecting institutions and policies to
transform the model of economic growth in Vietnam, serving the country's
development needs in the context of integration.
In addition, the thesis is an essential document for researching and
teaching issues related to economic growth models, economic growth
model transformation in Thailand, Malaysia and Vietnam.
7. The structure of the thesis
In addition to the Introduction, Conclusion, the thesis is structured as
follows:
Chapter 1: Overview of research works related to the topic of the thesis
Chapter 2: Theoretical and practical basis for economic growth model
and transformation of economic growth model
Chapter 3: Changing economic growth models in Malaysia and Thailand
after the global economic crisis

5


Chapter 4: Lessons learned from the practice of changing the model of
economic growth in Malaysia and Thailand after the global economic crisis
and implications for Vietnam
Chapter 1
OVERVIEW OF RESEARCH WORKS
RELATED TO THE TOPIC OF THE THESIS
1.1. Literature review of economic growth model and transformation of
economic growth model

- Foreign research situation
- Domestic research situation
1.2. Literature review on changing the world economic growth model after
the global economic crisis, especially in Southeast Asian countries of
Thailand, Malaysia and Vietnam
- Foreign studies
- Domestic studies
1.3. The agreed points, gaps and research direction of the thesis
1.3.1. The agreed points
- Researches on economic growth models agree that: Each country
depends on specific historical conditions to select, build and develop its
economy according to its own models. All similar to any country. At the
same time, over each stage of development, an economic growth model has
been developed and re-applied that needs to be adapted to the internal and
international context of the impact. There is no "one-to-one" economic
growth model for all stages of development.
- Most domestic and foreign studies related to the impact of the global
economic crisis agreed that: This is a crisis and recession with extremely
serious impacts on most economies, from developed countries to
developing countries.
- Due to the impact of the global economic crisis, it is necessary to reevaluate the economic growth models that countries are pursuing, based on
6


which they seek to adjust or reform to find a The new model is more
relevant to the new domestic and international circumstances. With the
current nature of deeper and deeper international integration, researching
and learning from experiences of transforming economic growth models of
other economies is an indispensable objective objective.
With the agreed issues from the above-mentioned domestic and foreign

research works, they are of reference value and selected by the PhD
candidate in the course of their research.
1.3.2. The gap and research direction of the thesis
Firstly, there are very few studies on transforming the economic growth
model after the global economic crisis in Thailand and Malaysia. Most
studies mention these two countries only as part of the study on economic
growth model transformation in Southeast Asia. Domestic and foreign
studies on this topic mainly focus on countries in East Asia such as Japan,
Korea, and China as examples of successful economic growth model
transformation after crisis. Global economic crisis. However, the PhD
student said that it is necessary to focus on a deep research on the
transformation of economic growth model of Thailand and Malaysia
because these countries share many common cultural and geographical
features. Ethnicity in Southeast Asia with Vietnam; At the same time,
although their economic growth model conversion has not been successful,
it will be valuable lessons for Vietnam in the economic growth model
transformation.
Secondly, in Vietnam, although the transformation of economic growth
model after the global economic crisis is still underway, looking at the
statistics of Vietnam's economic growth rate, The growth rate is still on a
downward trend, the most worrying thing is that the labor productivity gap
between Vietnam and other countries continues to increase. Each
Vietnamese employee has a productivity of only 42.3% of Indonesia;
56.7% of the Philippines and especially 87.4% of labor productivity in Laos
7


[13]. Obviously, Vietnam's economic growth model is still not suitable for
economic change. Therefore, changing the economic growth model is still
an indispensable requirement of Vietnam. And the study of changing the

economic growth model of Thailand and Malaysia to draw lessons from
experience, implications for Vietnam is very necessary.
This is also the content that the PhD student will clarify in the thesis.
1.4. Research questions and analytical framework of the thesis
1.4.1. Research questions
To accomplish the research objectives, the thesis focuses on answering the
following research questions:
Why must economic model be transformed?
What can the experience of changing the economic growth model in Malaysia
and Thailand after the global economic crisis be applicable to Vietnam?
What model of economic growth are we pursuing? Is the model really
suitable and can be developed sustainably? How to transform the economic
growth model successfully?
1.4.2. Analytical framework of the thesis
Chapter 2
THEORETICAL AND PRACTICAL BASIS ON THE MODEL OF
ECONOMIC GROWTH AND TRANSFORMATION OF THE
ECONOMIC GROWTH MODEL
2.1.3. The speed and quality of growth in the economic growth model
When studying the growth process, it is necessary to fully consider both
the quantity and quality of economic growth in a close relationship with
each other. Growth quality is a concept that reflects the internal content of
the growth process, manifested in the means, modes, objectives and effects
on the environment containing that growth process. The growth rate reflects
the outside of the growth process, expressed in the extent, large number of
small, fast or slow scale expansion.
8


The speed of growth and the quality of growth are two sides of a

problem, interlinked. Economic growth in terms of quantity usually takes
place first and is a prerequisite for promoting and improving the quality of
economic growth. Improving the quality of economic growth, sustainable
and efficient growth, in turn, contributes to the creation of wealth and
income ... facilitating additional resources for the post-production cycle and
promoting push growth in quantity. In each development stage is different
and depending on the choice of different development models, the position
of the quantity or quality face is set differently.
2.1.4. Elements of economic growth model
From the perspective of the concept and based on the summary of
economic growth theories, it is possible to identify the factors that affect
growth in different ways. Opinions on the determinants and origins of
economic concentration also change over time, with more and more
complete and clear trends about the forces driving growth:
- Can be divided into groups of economic and non-economic factors.
- It is also possible to generalize the factors affecting growth in the four
dimensions of an imagery. These are: (i) The dimension of the inputs, (ii)
the dimensions of output, (iii) the dimension of the economy's structure and
(iv) the dimension of institutions.
- There is also a general view of the components of MTCT including
three factors: growth motivation; inputs of economic concentration;
management mechanism.
2.1.5. Some theories and models of economic growth
- Classical growth theory:
- The theory of economic growth by Karl Marx:
- Keynesian school growth model
- Neoclassical growth model
- Endogenous growth model
- Growth models considering non-economic factors
9

2.2. Some theoretical and practical issues about changing the model of
economic growth after the global economic crisis in 2008
First: Causes of changing economic growth model
- Development trend of the global economy after the crisis
- Problems with the old growth model itself and new demands at home
Second: The purpose of transforming economic growth model
The term innovation or transformation of economic growth model in the
common sense is changing the way the economy operates in a progressive
manner. It is the process of establishing a common framework or common
pattern of operating the economy on the basis of optimizing national
resources in association with a rational, efficient and modern economic
structure, in order to achieve High and sustainable economic growth.
From the perspective of growth resources, the transformation (or
innovation) of the economic growth model is essentially a change in the
way resources are used from primarily on increasing scale to relying mainly
on increase investment efficiency, increase labor productivity and total
factor productivity (TFP), while ensuring the benefits of growth are
distributed more reasonably and equitably across regions and population
strata. [CIEM, 2012].
Thirdly, Factors affecting the economic growth model transformation
Practical experience and international trends in the transformation of
economic growth models
Chapter 3
TRANSFORMING THE MODEL OF ECONOMIC GROWTH
IN MALAYSIA AND THAILAND AFTER THE GLOBAL
ECONOMIC CRISIS
In this chapter, the thesis analyzes the practical transformation of
economic growth models of two Southeast Asian countries, Malaysia and

Thailand; clarifying the reasons for these countries' transformation of
10


economic growth models after the global economic crisis, the basic
orientations for transforming economic growth models and generalizing the
actual transition process. out in these countries; From there, draw some
lessons for Vietnam.
3.1. Transforming the model of economic growth in Malaysia after the
global economic crisis
3.1.1. Issues raised with Malaysia's economic growth model since the
global economic crisis
Firstly, Malaysia, despite being an advanced developing country with
impressive economic growth, at the beginning of the 21st century, is also
stuck in the general difficult situation of the global economy and is seeking
how to get out of the middle income trap.
Secondly, even before the onset of the global economic crisis, Malaysia
tried to diversify its export markets to help reduce the country's economic
vulnerability to external impacts. , and recently there have been policies to
fully exploit the domestic market, but due to the relatively small size of the
domestic market, the future of Malaysia's economy will continue to depend
on the success or failure of the economy. However, some of Malaysia's
main partners (such as the US, Japan, China, EU and ASEAN) have so far
consumed a significant portion of Malaysia's exports.
Third, with the long-term efforts of the government of former Prime
Minister Mahathir Mohammed, Malaysia is considered to be the most
advanced developing country in ASEAN, with the most developed
infrastructure and caring human resources in all three areas of education, health
and social security. However, compared with the set goals as well as the
development requirements to become "Tigers in Asia", these areas in Malaysia

are still considered underdeveloped, inadequate, and being major obstacles to
the development of both the economy and the life of the people.
Fourth, although Malaysia's politics is not wobbly and prolonged as a
few neighboring ASEAN countries, the domestic political order is changing
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rapidly and it is also one of the main drivers of the transition, changing the
economic growth model of this country.
3.1.2. Some key directions in transforming the economic growth model
The directions for changing Malaysia's main economic growth model
are reflected in the New Economic Model (NEM), published on March 30,
2010, replacing the new economic policy (New Economic Policy - NEP);
and Malaysia's 11th Plan, 2016-2020 (Rancangan Malaysia KesebelasRMKe-11). Transitions aimed at shifting from a race-based policy, giving
preference to Malaysians to priority action policies for problem-solving,
demand-driven, liberalizing the economy and eliminating gradually the
deep protection and intervention of the State, in order to make Malaysia's
economy more competitive, more marketable and more investor-friendly,
with high growth and quality, and people have higher incomes; In order to
achieve the vision to turn Malaysia into a developed and high-income
country by 2020.
3.1.3. Some practical transformation after the crisis
In order to implement orientations for changing the economic growth model
after the global economic crisis, Malaysia has made the following major
adjustments:
Firstly, reform economic institutions, improve transparency;
Second, adjust economic policies;
Third, increase investment in developing human resources, science and
technology;
Fourth, accelerate the process of regional economic integration.

3.1.4. Assessment of economic growth model transformation in Malaysia
Major achievements
- GDP per capita growth rate shows that Malaysia's economy is in the
process of strong growth;
- Agricultural, industrial and service sectors have achieved significant
achievements;
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- Infrastructure construction and transportation
- Investment and trade field.
Outstanding issues: The Economic Transition Program (ETP) in 2009,
aimed at attracting large investment in Malaysia with the aim of promoting
GDP growth to over 6% per year, aims to increase the country's per capita
income to the level of USD 15,000 / year since 2019, aiming to put
Malaysia on the list of high-income countries in 2020. But in fact, after 5
years of implementing the conversion policy, this target only reaches about
5%, making the above goal impossible to achieve.
One of the reasons why Malaysia fell into the middle-income trap is that
the country has not changed development policies since the period of
getting out of poverty.
Income inequality in Malaysia is also an issue.
Malaysia's education system is also thought to be problematic,
particularly failing to meet the labor market's needs and with many
limitations.
3.2. Transforming the economic growth model in Thailand after the
global economic crisis
3.2.1. Issues raised with Thailand's economic growth model since the
global economic crisis
Firstly, for a long time, Thailand achieved rapid growth but mainly

relied on capital intensity, including domestic and foreign capital.
Secondly, rapid growth but low quality of human resources is one of the
reasons for the low labor productivity in Thailand.
Third, rapid growth creates inequality in Thailand's income distribution.
Fourthly, income inequality is one of the reasons limiting the poor's access
to education and health opportunities.
Fifth, Thailand's financial structure is also an obstacle to long-term
growth.

13


Sixth, monopoly power still exists in state-owned enterprises, and there
are provisions to prohibit adequate competition in some vital economic
sectors, especially in the areas of value-added services. soaring, like finance
and telecommunications. Consequently, the creative dynamism of the
business sector, especially small and medium-sized private enterprises, is
not promoted well.
Seventh, institutional weaknesses and constant political instability are
the most important impediments to Thailand's long-term growth.
Eighth, although Thailand has been very successful in achieving its
economic concentration goals fast, increasing GDP per capita, these
successes have caused the country to pay too high prices on environmental
issues, such as pollution, exhaustion of natural resources and forest
destruction.
3.2.2. Orientations to transform the economic growth model
The implementation of the Thai Government's socio-economic development
plans shows that the stages of economic development are divided into three
main stages as follows:
- First stage: Focus on rapid economic growth. This period extends from the

First Plan to the end of the Seventh Plan (from 1961-1996) with the main
strategy of exploiting resources and labor.
- Second stage: Towards a full economy. This period extends from the 8th
Plan to the 10th Plan (from 1997-2011). This period particularly focused on
social development through human capital development, along with
economic stability.
- The third phase: Towards a full economy and sustainable development.
This period begins with the 11th Plan (from 2012-2016), based on a
harmonious combination of human capital, technology and innovation.
The directions for transforming Thailand's economic growth model after the
global economic crisis are integrated into Thailand's 5-year economic and
social development plans, focusing on Plans 10 and 11. Plans follow the
14


King's Philosophy of "a sufficient economy", to enhance the "resilience" of
the economy in addition to the conventional growth model.
3.2.3. Policies implemented
- In order to improve the competitiveness from which to increase
exports, Thailand has pursued a liberalization policy based on the
implementation of a range of appropriate market access strategies, but
focusing on only a few sectors and a number of products in each industry
the country having strength.
- The Thai government has consistently carried out flexible monetary and
fiscal policy reforms, helping the country to overcome economic shocks.
- To improve low labor productivity, the Thai Government has introduced
human resource development policies, science and technology and is
integrated into the country's five-year plans.
- In addition, economic restructuring along the line of sustainable
development has been included in Thailand's 5-year plans.

- In order to resolve the development gap between regions, the Thai
Government has adopted regional balance development policies by clearing
the excessive concentration of economic, trade and financial activities in the
region, Bangkok and some surrounding areas.
- To promote the sustainable development of agriculture, Thailand has
adopted a number of strategies such as: enhancing the role of individuals
and organizations operating in the agricultural sector; Improve professional
skills of farmers; strengthening social insurance for farmers, solving well
the debt problem in agriculture; reduce risk and establish a system to ensure
risks for farmers.
3.2.4. Evaluation of economic growth model transformation in Thailand
Major achievements
Implementing the economic growth model transformation after the
effects of the global economic crisis, Thailand has achieved certain
achievements:
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Transforming the model of economic growth has helped Thailand improve
its poverty status and be able to meet most of the Millennium Development
Goals (MDGs).
Transforming the economic growth model contributes to improving the
income of households, giving them the opportunity to invest more to
improve the quality of life and education.
Regarding economic growth, although the period of 2014 - 2015 was
delayed due to internal political instability; From 2016 to the present, the
Thai economy has recovered, GDP growth rate in 2016 was 3.3% (412
billion USD), 2017 was 3.9% (455 billion USD) and Quarter I In 2018, it
was 4.8%. Inflation in 2016 was 0.2%; 2017 was 0.7% and in the first 6
months of 2018 was 1.5%. The Thai economic outlook is currently well

evaluated by international financial institutions, but due to the internal
political situation, there are still many risk factors, so it is difficult to
forecast growth in the coming time; Thailand's economic growth rate in
2018 does not exceed 3.9% and forecasts for 2019 are about 3.7%. Some
economic sectors which Thailand has identified as the key include:
Tourism, agriculture and fishery (rice ranked first in the world, seafood
export ranked third in the world), automation and auto parts, electronics,
food and agribusiness.
Existing issues: Research on the practice of exchanging economic
growth models shows that Thailand only achieved the target of rapid
growth in a certain period and the growth rate tended to decrease, this
demonstrating the unsustainability of growth.
Despite these adjustments and efforts to transform the economic growth
model, those adjustments have not yet adapted to the changes in the internal
and external environment. The fact shows that Thailand still maintains the
signs of growth model in the phase out of poverty, that is, it still uses
development policies based on cheap labor and low innovation capacity.

16


3.3. Similarities in the transformation of Malaysia and Thailand's
economic growth models
Malaysia and Thailand pursue different economic reform and
transformation programs. Each transition program has specific goals,
orientations or content depending on the shortcomings of the model itself,
on specific (economic, political, and social) conditions of each nation.
However, also from the above analysis, we also see that behind the
differences, the characteristics of each of these national programs, there are
very basic similarities showing the trend of renewing the economic growth

model, common practice of the world and the region.
Chapter 4
LESSONS LEARNED FROM PRACTICE TRANSFORMING THE
ECONOMIC GROWTH MODEL OF MALAYSIA AND THAILAND
AFTER THE GLOBAL ECONOMIC CRISIS AND IMPLICATIONS
FOR VIETNAM
4.1. Lessons learned from changing practices of economic growth
models of Malaysia and Thailand after the global economic crisis
Lesson on implementing macroeconomic policies in a timely, synchronized
and effective manner
Lesson on financial market stability and restoring public confidence
Lesson on restructuring the economy after the crisis
Lesson on deep concern about social security.
4.2. Implications for Vietnam
4.2.1. Scientific basis for identifying a new economic growth model in the
post-crisis period in Vietnam
- Global economic crisis and problems raised for Vietnam's economic growth
- New features in the international context affecting the
transformation of Vietnam's economic growth model
- Issues raised for Vietnam's economic growth model after the global
economic crisis
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+ Growth depends more on capital increase
+ Unstable macroeconomic stability
+ Low investment efficiency
+ Low labor productivity and slow increase
+ National competitiveness is slowly improving
+ The goals of institutional reform have not been given adequate

attention.
4.2.2. Practical transformation of economic growth model in Vietnam
from 2011 to the present
- Objectives, missions of economic growth model transformation
+ Period from 2011 to 2015
+ Period from 2016 to 2020
- Achievements in economic growth model transformation from 2011
until now
+ From economic growth aspect
+ From social aspect
- Challenges to economic growth model transformation nowadays in
Vietnam
+ From economic aspect
+ From economic growth connected with social development
+From economic growth connected with environmental protection
4.2.3. Suggested experience for Vietnam on innovation of growth model
- Perspective on growth model: Innovating growth model must grasp a
thorough view, that is, economic growth must ensure sustainable and
effective requirements in the long term.
The above general view is concretized as follows: (i) Growth in a
concentrated direction (not spread, dispersed); (ii) making the private sector
a real driver of economic growth; (iii) vigorously renovate economic
management institutions towards greater accountability and transparency;
(iv) build industrial production capacity to become the foundation of
18


economic growth; (v) economic growth is closely linked to social progress
and justice, focusing primarily on improving the well-being of the
population; (vi) closely associate economic growth with ensuring

environment-friendly goals and climate change adaptation.
- Content of growth model
Based on practice and research objectives; Based on the roadmap defined in
the Socio-Economic Development Strategy of Vietnam (in this Strategy, the
contents of socio-economic goals are also set until 2020 and followed by the
vision to The thesis divides the implementation schedule into two phases:
Phase 1 from 2011 to 2020, and phase 2 from 2021 to 2030.
Specific content and proposed goals and solutions for the main
economic growth model in the thesis focused on phase 2 (2021 - 2030).
The growth model in this period is aimed at sustainable and effective goals
for people on the basis of: (i) Focusing on capital investment and in-depth
labor activities across the whole economy; (ii) promoting competitive
advantages by industry, product and dynamic region developed in the
period 2011-2020; (iii) smoothly operate the market economy mechanism
and closely link the growth process with the implementation of social
progress. The specific content of the mechanism of operating the economic
growth model phase 2 is reflected in the following main aspects:
First,

move

to in-depth

growth

across

the entire

economy.

Secondly, perfecting and exploiting the competitive advantages that have
been created, continuing to restructure the economic sector in the direction
of increasingly effective.
Thirdly, perfect and exploit the advantages thanks to the scale and the
network of the growth motivation regions.
19


Fourthly, smoothly operate the market mechanism
Fifth, growth coincides with income improvement for the
underdeveloped regions through the income redistribution policy.
Sixth, growth places emphasis on environmental friendliness and climate
change adaptation.
- Some conditions to transform economic growth model
Firstly, the most important factor in renewing the economic growth model
is the qualified and highly productive labor force.
Secondly, saving capital and improving the efficiency of capital use are one
of the important conditions to transform the economic growth model.
Thirdly, the government needs to implement flexible and transparent
macroeconomic policies to share growth results fairly.
Fourth, there must be a strong State apparatus.
4.2.4. Some key solutions to continue to transform the economic growth
model in Vietnam in the coming time
- Solutions to continue performing economic restructuring
+ Firstly, restructuring the economy by industries and trades: (i)
Selecting and forming a list of spearhead product industries; (ii) Developing
auxiliary industries to shorten the processing period, gradually increasing
high value-added deep-processing products in processing industries. (iii)
Restructuring and improving the efficiency of exports. (iv) improve the

level of contribution to the economic growth of the service sector,
especially high-quality services.
+ Second, restructuring according to economic sectors
+ Thirdly, economic restructuring by territory - improving the efficiency
of growth driver areas: (i) continue planning, reorganizing and reorganizing
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key economic regions (restructuring the regional system key economic). (ii)
Improve the system of mechanisms and policies to develop key economic
regions. (iii) Arranging and organizing the economic activities of industrial
parks towards sustainability and high efficiency.
+ Fourthly, restructuring investment and improving the efficiency of use
of investment capital: (i) changing investment structure towards increasing
the proportion of capital investment from the private sector, gradually
reducing the proportion of investment State capital; (i) Improve the
efficiency of investment from State capital.
- Solutions to improve the competitiveness of the economy.
Firstly, improve the business environment.
Second, promote the prevention and fight against corruption.
Thirdly, promote technological innovation, improve the competitiveness
of enterprises.
- Solutions to enhance in-depth investment in resource factors are
the foundation for long-term sustainable growth
Firstly, increasing investment in building infrastructure systems paves
the way for long-term and sustainable economic growth.
Secondly, increasing investment creates favorable conditions to improve
labor productivity
Thirdly, increasing investment in developing human resources in
quantity and constantly improving in quality.

Fourthly, increase investment in science and technology.
- Solutions to Accelerating Institutional Reform.
Firstly, continue to review to eliminate, amend or supplement backward and
inadequate institutions, and at the same time establish missing institutions to
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adjust newly arising economic and social relations, development process of the
market economy and the process of international economic integration.
Secondly, to accelerate the renovation of the work of planning in order
to clearly identify the socio-economic contents that each level of
government needs to plan; at the same time calculate the balance of
resources corresponding to the identified goals to guide the development of
the market.
Thirdly, it is necessary to be persistent in the perspective of sustainable
development, paying more attention to social and environmental factors in
institutional building and implementation.
Fourthly, continue to promote administrative reform.
Fifthly, perfect policies and laws for market types in line with the goal
of restructuring the economy.
Sixthly, changing the way of regulation and intervention of the State in
the economy through the macroeconomic policies and economic
organizations of the State.
Seventh, continue to renew the decentralization of the Government to
local governments.
CONCLUSION
Researches on economic growth models agree that: Each country
depends on specific historical conditions to select, build and develop its
economy according to its own models. all similar to any country; At the
same time, over each stage of development, the economic model that has

been developed and re-applied needs to be adapted to the internal and
international context of the impact. There is no "one-to-one" economic
growth model for all stages of development. At the same time, domestic
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and foreign studies related to the impact of the global economic crisis
agreed that this is a crisis and recession with extremely serious impacts on
most economies internationally, from developed countries to developing
countries. Due to the impact of the global economic crisis, it is necessary to
re-evaluate the economic growth models that countries are pursuing, based
on which they seek to adjust or reform to find a new model is more relevant
to the new domestic and international circumstances. With the current
nature of deeper and deeper international integration, researching and
learning from experiences of transforming economic growth models of
other economies is an indispensable objective necessity.
Thailand and Malaysia are countries sharing common cultural,
geographical and ethnic characteristics in Southeast Asia with Vietnam; At
the same time, although their economic growth model conversion still has
unsuccessful points besides achievements, it will also be valuable lessons
for Vietnam in the tissue transformation. Figure of economic growth.
However, there are very few studies on transforming the economic growth
model after the global economic crisis in Thailand and Malaysia. Most
studies refer to these two countries only as part of a study on the
transformation of economic growth models in Southeast Asia. Domestic
and foreign studies on this topic mainly focus on countries in East Asia
such as Japan, Korea, and China as examples of successful economic
growth model transformation after global economic crisis. The thesis bases
on generalizing the basic theories about economic growth model clarifying
different views and dimensions on the factors of economic growth model.

At the same time, it also systematized theoretical and practical issues on
economic growth model transformation in order to build an analytical
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