(Sourced from Vietnamnet, translated by TranHoaiDuc.com)

Vietnam has opened the first front to fight the Covid-19 pandemic, now it is the country that soon opens the "second front" to start and restore the economy.
"Anti-pandemic as against the enemy" - Vietnam opened its first front to fight the Covid-19 pandemic early on, when almost the whole world was still an outsider. On April 15, 2020, Prime Minister Nguyen Xuan Phuc mentioned the opening of a "second front" to restart and restore the economy after a standstill during the pandemic from early 2020 to the present.
During the period after Tet Holiday, there have been paralysis in many industries, such as aviation, tourism, education, etc., but there are also many industries operating at full capacity such as healthcare, insurance and banking...
In the physical production area, the technical infrastructure remains intact, allowing industry and construction to resume normal operation at any time. The agricultural sector, which was the backbone of the economy, once home to millions of workers and many types of businesses eliminated by the market or crisis, still has that capacity. In particular, the electrical system, the petroleum supply system, the transportation system (roads, bridges, railway stations, ports, warehouses, equipment, vehicles ...) are available for supply. Provides its specialized services to the entire economy.
Thus, the main object of this second front is the relationship between the aggregate supply and demand system that the Covid-19 pandemic broke, removed outdated relations, develop new relationships to suit specific historical and domestic circumstances after the epidemic.
First of all, it is the appearance of increasing demand of "self-consumption" in each country, leading to a reduction in import globally. This is a lesson learned in international relations through the Covid-19 pandemic. Many nuclear powers have been unable to save themselves because they did not produce essential products for the prevention of outbreaks of diseases such as masks and ventilators, etc. They realized this deadly mistake, depending too big on a market.
It is certain that after the pandemic, import, export and investment will be reoriented globally, especially in G7 and G20 countries. Then, each country will have a list of products that must be self-consumed in the country, not export investment as rampant as in the past. At the same time, each exporting exporting country is forced to choose the destination so that it has the necessary political credibility.
The consequence of this new direction will be the relocation of facilities that manufacture products on the self-consumed list of products that have long been located in foreign countries and now have to return to the country. At the same time, production facilities located in countries with low political reliability will also move to a country with a higher level of confidence.
In the above shifting trend, Vietnam has many advantages available to attract this global scale. However, in order to turn advantages into reality, Vietnam still has a lot of work to do when opening the "second front", in which it is impossible not to make a breakthrough in the "clearance" work sequence.
In practice for many decades, this series of jobs has caused countless losses to the economy, in which farmers losing farmland are only compensated, not sold land use rights, and degenerated cadres The quality of corruption has dropped in all stages, investment projects are even doubled in capital compared to the original design due to the congestion of clearance and discouraging investors.
Secondly, it is the restructuring of relationships in the global value chain of production - supply - distribution. After World War II ended in 1945, humanity has entered a new era of globalization. That institution has gradually established a system of relationships in the production - supply - distribution chain, in which the most obvious is the model of a product (such as manufacturing civil aircraft) divided into multiple stages, manufactured in many countries, then assembled into a final product in one country for global supply, and profits distributed to all the participants.
The production - supply - distribution chain also creates a widespread processing network (such as garments), in which the processing countries have high import-export turnover but the profit is not great. The production - supply - distribution chains are maintained on a common trajectory and controlled by global agencies such as the United Nations (UN), the World Bank (WB) and the World Trade Organization. (WTO), International Monetary Fund (IMF), International Labor Organization (ILO), Arbitration Tribunals and International Courts ...
With the production - supply - distribution chain, in just 20-30 years, Japan has become the "dragon", South Korea became the "tiger" of Asia, China became the world's factory, the Western and Northern Europe became prosperous nations. Meanwhile, over a hundred other countries, despite being able to escape poverty, were caught in the middle-income trap, unable to escape from one decade to another. That global institution was broken in many parts and globally when the Covid-19 pandemic took place.
In Vietnam, opening a "second front" is an opportunity to restructure the production - supply - distribution chain in its territory, even earlier than the rest of the world to actively join the New global production - supply - distribution.
Accordingly, The gradual elimination, towards the radical elimination of outsourcing enterprises has been set, now is the time to do it; diversify the import of key raw materials for each type of product from many countries, avoiding from a single place; the localization of manufacturing mechanical products is done not only by calling or encouraging, but also by reorganizing production with central enterprises and satellite enterprises; taking districts as a locality to implement agricultural industrialization from farming to final product processing; set the domestic market as a driving force for the sustainable development of Vietnam's global market.
The restructuring of the above production - supply - distribution chain of Vietnam has specific difficulties, but it all has the same preeminent foundation, which is the geopolitical advantage and the trust of the national community. for the people of Vietnam.
Third, it is the reestablishment of relations in the macroeconomic balance system of the economy due to the distortion of the Covid-19 pandemic directly and indirectly. The most noticeable are the trade balance (import and export fluctuated greatly), the budget revenue and expenditure balance (spending increased at the same time with decreasing revenue so the overspending exceeded speed), the balance of mobilization and lending of the system. credit system (increasing outstanding loans, large bad debts), and especially ensuring the stability of the Vietnamese currency against the risk of devaluation of the renminbi and the US dollar.
The reestablishment of relationships in the above system of macro-balances requires the State's constructions in order to fully promote the role of the state economy, the role of motivation of the private economy and the role of support of foreign investment economy.
It is time to release the capital of several million billion VND, which has been buried in the SOE system for decades with drastic measures, especially when a State Capital Management Committee has been established.
The decentralization of state revenue and expenditure between the Central Government and the provinces, districts and communes (and equivalent levels in the city) has come to a time where a reform is needed; The management of the macro-balance system, which has been spread over a number of Councils and Steering Committees from the central to local levels, is also the time to be refocused by a single Council of leaders. the ministries and branches at the central level (such as the Ministry of Planning and Investment, the Ministry of Finance and the State Bank) and with the participation of experts and scientists.
Vietnam soon opened the first front to fight the Covid-19 pandemic, now it is the country that soon opens the "second front" to start and restore the economy. Vietnam made practical contributions to the world in the first match, hoping that it will continue to make a worthy contribution in this next game.
Dr. Dinh Duc Sinh
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