Sustainable development is considered an important mission of every country, organization, and business aiming towards a bright future for humanity. One of the three core elements in sustainable development is the economy. It can be said that sustainable economic development is mentioned as a powerful factor that directly affects the development of all humanity. So what is sustainable economic development, let's GREEN IN Find out in the article below!
1. What is sustainable economic development?
Sustainable economic development is the process of strong, quality and safe growth of the economy when evaluating all aspects such as expanding the scale of output, outstanding progress in economic structure... This growth process requires the subjects existing in the economic system to have access to potential resources, and at the same time need to equally divide natural resources. - According to the State Management Magazine
Policies are enacted not only to bring profits to a certain minority group but everyone will receive prosperity. At the same time, sustainable economic development must also ensure that it does not negatively affect the ecosystem and that basic human rights are not violated.
2. Evaluation criteria and indicators for measuring sustainable economic development
According to the Vietnam Insurance Development Institute's electronic information portal, sustainable economic development will be assessed according to the following criteria and measurement indicators:
| Evaluation criteria | Measurement index |
| The relationship between economics and sustainability | |
| Sustainable GDP growth Ensuring the balance of macro indicators Improve the quality of economic growth Promote economic competitiveness | Increase GDP and GDP per capita Promote economic restructuring Increase labor productivity Controlling public debt ratio International trade development Control inflation rate to be stable Boosting R&D spending as a percentage of GDP Improving total factor productivity Improve overall competitiveness Developing high quality human resources Encourage savings and investment Optimizing investment efficiency |
| The relationship between society and sustainability | |
| Ensuring a balanced society Ensure employment rate Access to human rights such as education, health care… | Poverty rate and poverty reduction rate GINI coefficient and the gap between rich and poor Urban employment rate and unemployment rate Percentage of workers with skills training Nutritional status in young children Under 5 mortality rate Average life expectancy Percentage of population with access to basic health services Universal education completion rate Achievements in the field of education Literacy rate Population growth rate |
| The relationship between environment and sustainability | |
| Use resources economically and efficiently. Minimize greenhouse gas emissions and waste to limit environmental pollution. Responding to climate change. Production and use of green energy. | Percentage of forest cover CO2 emission rate Concentration of pollutants in the atmosphere in urban areas Ratio of renewable energy sources to total energy used |
Economic development plays an increasingly important role in the process of building a fair and stable society, and is also the core foundation for solving urgent environmental problems. However, rapid economic development will lead to many consequences, especially the reduction of economic sustainability because rapid development can have negative impacts on the environment and biodiversity, and society will also be disrupted.
Therefore, the current theoretical basis for rapid and sustainable economic growth and development focuses on determining representative index thresholds for measurement criteria, suitable to the context and specific practices of each economy.
3. Current status of sustainable economic development in Vietnam
In Vietnam, our Party and State always consider sustainable economic development as the top priority issue today, and are determined to change the economic growth model from breadth to depth, along with labor productivity, science and technology and innovation.
Regarding growth rate: The most outstanding achievement of the Vietnamese economy is the high economic growth rate since the implementation of the renovation until now. The scale of the Vietnamese economy has always reached a stable high level, helping Vietnam join the list of countries with high economic growth not only in the region but also in the world.
Regarding economic restructuring: In the period 2011 - 2019, the service sector accounted for the largest proportion of GDP. The industrial sector no longer holds the important position as in the years before the renovation. This change proves that Vietnam's economic restructuring is completely correct and brings clear results because only the service and technology sectors can create added value for sustainable economic development in Vietnam.
Regarding people's income and poverty reduction rate: GDP per capita growth rate has increased steadily. In the period 2010-2014, GDP per capita increased by an average of 4,93% per year. By the period 2016-2019, this growth rate had increased to an average of 5,6% per year, far exceeding the target of 4-4,5% set for the entire period 2016-2030.
4. Issues with sustainable economic development in Vietnam
The achievements that the Vietnamese economy has made in recent years are undeniable. However, in reality, our country's rapid economic development still has certain limitations:
- Vietnam has a high growth economy but it still does not guarantee stability and speed.
- The macro economy is largely balanced but not yet stable.
- The competitiveness of the economy is still low. Domestic enterprises still face many difficulties in participating in the global value chain.
- Issues related to social security and poverty reduction are posing many challenges that need to be focused on and resolved.
- Environmental protection, climate change response and resource management are still limited, requiring efforts to improve and strengthen coordination.
5. Some solutions to overcome the situation of sustainable economic development in Vietnam
Focus on innovating the economic growth model by shifting from growth based on external factors and extensive development (such as capital and labor) to intensive growth (such as improving labor productivity, science and technology) and promoting internal factors such as high-quality human resources and domestic consumption market. These innovation priorities aim to achieve sustainable and rapid development in the coming time, including:
- Maximize the internal strength of the economy, including the important role of state-owned enterprises, private enterprises, FDI and the agricultural sector, while attracting and effectively using international resources. Promote the application of science, technology and innovation to increase labor productivity, invest in research and development (R&D), access advanced technology; apply modern management, exploit human potential and encourage production and business to create high added value, helping the economy effectively integrate into the global value chain.
- Developing regional and inter-regional economies, with separate mechanisms to promote the potential of each region, especially prioritizing dynamic economic regions to create spillover effects to surrounding areas. Issuing development support policies for disadvantaged areas, such as remote areas, ethnic minority areas to ensure growth does not fall behind. At the same time, promoting decentralization and clear delegation of power between the Central and local levels, associated with regional planning, assigning responsibilities to each locality to avoid overlapping and ineffective investment.
- Establish a breakthrough mechanism for economic growth and restructuring, attract resources to both develop the economy and protect the environment and respond to climate change, and sustainably exploit marine and island resources. Focus investment on coastal economic zones to increase operational efficiency and promote the country's marine economic potential.
These measures help Vietnam move towards a sustainable and proactive economy, making effective use of both domestic and foreign resources.
6. Conclusion
The above article has helped you learn about sustainable economic development. Hopefully our information will be of some help to you as well as contribute to protecting the environment to be greener - cleaner - more beautiful. Don't forget to follow the next articles at GREEN IN for more updated information!