The dialogue session was chaired by Mr. Pieter Perrett - Professor at the University of Applied Sciences in Northwestern Switzerland, Mr. Nguyen Viet Long - Director of Binh Duong Department of Science and Technology, Mr. Ashwani Arora - Executive Director of MarketXcel (India), Mr. Inderdeep Singh - Managing Director, Continental Device India (India).
Attending were Mr. Mai Hung Dung - Member of Provincial Standing Party Committee, Permanent Vice Chairman of the Provincial People's Committee (PPC) and representatives of some departments, committees and branches of Binh Duong province, universities, research institutes, enterprises of India and Binh Duong.
Overview of the dialogue session
Growth based on technological innovation
At the beginning of the dialogue session, Professor Pieter Perrett - University of Applied Sciences Northwestern Switzerland said that the middle income trap is a situation in economic development when a country reaches a certain level of average income (due to the advantages available) and is "stuck" at that income level without being able to cross that threshold to become richer. This "stuck" is due to factors such as: There is no longer the advantage of cheap labor as in low-income countries; Nor does it has the advantage in terms of infrastructure, highly qualified human resources and modern techniques and technologies like high-income countries.
According to experts, for a developing country like Vietnam, the risk of falling into the "middle-income trap" is real. The keyword emphasized by delegates and experts at the dialogue session to help developing countries escape the "middle income trap" in the current development trend of the world is "science and technology" and "innovation". Innovation creates opportunities to design policies, propose solutions on growth models, management, business, etc. contributing to increase labor productivity, thereby increasing per capita income.
Mr. Inderdeep Singh - Managing Director, Continental Device India (India) shared, the biggest difficulty is the transition from resource-based growth to technological innovation-based growth to continuously improve productivity and create competitive new products. To do this, it is necessary to invest in education and development of science and technology, and at the same time, encourage the application of scientific and technological advances to the economy. For Vietnam, it is necessary to focus on applying high technology to agricultural production to improve productivity, product quality and raise income for people in rural areas.
Mr. Ashwani Arora - Executive Director of MarketXcel (India) speaks
Mr. Ashwani Arora - Executive Director of MarketXcel (India) cited Korea as an example of successfully overcoming the "middle income trap". He said the country has developed a high-quality education system while encouraging creativity and supporting research and development in science and engineering. As a result, the developed country becomes a high-income country.
Mr. Nguyen Viet Long - Director of the Department of Science and Technology said that Binh Duong is currently the province with the highest per capita income in Vietnam. To achieve that result, along with the development of industry and services, the province has comprehensive solutions, calling and attracting many large enterprises in the field of high-tech agriculture to invest and do business effectively in the province. As a result, although agriculture only accounts for a low proportion in the economic structure, the quality of agriculture in the province is focused and raised, contributing to improving the income level of rural people.
Mr. Long also agreed with the evidence that Korea is a typical country that has overcome the "middle income trap" thanks to the application of technology and innovation. Binh Duong has actively cooperated with foreign partners to develop and implement the Smart City and Innovation Region Project, including Korea's Daejeon City to contribute to improving growth quality, overcoming the "middle income trap".
Not only growth, but also sustainable growth
At the dialogue session, experts and delegates said that in the process of overcoming the "middle-income trap", countries and localities should promote growth, but pay special attention to social and environmental issues to ensure sustainable growth.
Mr. Inderdeep Singh - Managing Director, Continental Device India (India) said that science and technology play a particularly important role to ensure sustainable development, especially in environmental issues. Applying science and technology in production at factories will contribute to reducing environmental pollution, especially textile and dyeing factories, which must ensure a standard waste treatment system.
Mr. Nguyen Viet Long shared, Binh Duong innovates and avoids the "middle income trap" comprehensively and holistically, not only in the economic field but also in the cultural, social and environmental fields with new business models adapted to the Industrial Revolution 4.0. Binh Duong prioritizes attracting investment in high-tech, advanced, environmentally friendly, less labor intensive industries and fields, creating high added value; financial services, logistics and other modern services; supporting industries, high-tech agriculture and especially attracting investment in the Science and Technology Industrial Park on the basis of industry 4.0. The province also diversified to attract foreign investment from potential markets and partners, focusing on the world's leading developed countries, transnational corporations holding advanced technology and modern management level.
Delegates exchange
The delegates highly appreciated the development orientation of Binh Duong province and said that these are the right steps that will help the province not only grow but also grow sustainably in the future. At the same time, the delegates also emphasized the role of education and training in the system of synchronous solutions to overcome the "middle income trap". Accordingly, it is necessary to focus on investing in people, creating more effective interactions between academia and enterprises, and mobilizing resources to participate in education and training so that science and technology can be effectively applied and be the driving force of economic growth.
Reported by Phuong Chi- Translated by Thanh Tam