Microeconomic policy overhaul seen as key to double-digit growth

Microeconomic policy overhaul seen as key to double-digit growth

Double-digit growth should be seen not merely as a target for economic scale or speed, but as a shift in institutional quality, productivity, technological capacity and business competitiveness.

Economists and business representatives at the forum in Hà Nội on Tuesday. —VNA/VNS Photos

Microeconomic reforms are needed to sustain rapid economic expansion and achieve double-digit growth in the coming years, economists and business representatives told a forum in Hà Nội on Tuesday.

Lê Văn Lợi, president of the Vietnam Academy of Social Sciences, said Việt Nam was entering a new stage of development that requires bigger changes to its growth model. Double-digit growth should be seen not merely as a target for economic scale or speed, but as a shift in institutional quality, productivity, technological capacity and business competitiveness, he said.

Lợi said macroeconomic stability was only a necessary condition, with growth ultimately driven by businesses, industries, localities and investment projects. He added that administrative procedures, high business costs and inefficient use of land, data, technology and labour remained constraints on growth.

He called for a stronger focus on micro-level reforms that directly reduce costs, raise productivity and improve businesses' access to resources. 

Nguyễn Mạnh Hùng, deputy director of the Ho Chi Minh National Academy of Politics, said Việt Nam's economy expanded by 8.18 per cent in the first half of 2026 from a year earlier, the fastest pace in 16 years, while inflation remained under control.

However, he said businesses faced a number of challenges, with many struggling to access financing despite strong demand for capital, while efforts to adopt digital technologies were constrained by regulatory hurdles and high compliance costs.

Microeconomic policies should be assessed based on their costs and benefits, with a focus on reducing transaction costs, encouraging innovation and managing risks effectively, Hùng said.

Economists and business representatives at the forum in Hà Nội on Tuesday. —VNA/VNS Photos

Tô Hoài Nam, permanent vice chairman of the Vietnam Association of Small and Medium Enterprises, said the biggest challenge facing small businesses was the gap between their legal right to access resources and their ability to obtain them in practice.

He said many firms struggled to secure financing, land, technology, data and skilled workers, leaving some unable to expand production despite having orders because they could not meet collateral requirements or find suitable premises.

Nam said compliance with regulations on taxation, environmental standards and digital transformation imposed disproportionately high costs on small businesses, which often lacked dedicated staff to manage regulatory requirements.

He said existing support policies focused too heavily on direct incentives such as tax breaks and financial assistance, while businesses needed greater support to strengthen management, adopt new technologies, build brands and meet international standards.

Nam called for reforms to ensure equal access to production resources, shift policy from providing support to building business capacity, and develop a business support ecosystem involving banks, research institutions, business associations and Government agencies.

Meanwhile, Phạm Anh Tuấn, deputy director of the Institute of Vietnam and World Economy, called for reforms in six areas, including improving the regulatory framework, expanding access to resources, developing capital markets, offering tax incentives for innovation, strengthening data and digital infrastructure, and helping domestic firms forge stronger links with foreign-invested companies.

Tuấn said the main constraints on growth lay not in weak demand but in businesses' capacity, including institutional barriers, limited access to resources, market pressures and weak innovation.

He said sustainable double-digit growth would require higher labour productivity and stronger domestic companies capable of integrating more deeply into regional and global value chains, rather than relying on short-term support measures.

During the forum, participants also discussed reforms to economic zones and free-trade zones, changes to tax and credit policies to support growth, and regulatory frameworks for artificial intelligence as a potential new engine of economic expansion. 

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