Total Resources for Socioeconomic Development Plan

2:30:28 PM | 3/31/2022

The socioeconomic system of a country, either developed or developing, is always a machine integrated with soft and hard infrastructure to move toward inclusive and sustainable development. Every year, countries make national policies to operate that conventional machine to develop the nation and bring well-being to their people.

In early 2022, the Government of Vietnam issued Resolution 01/NQ-CP on the main tasks and solutions to run the country's socioeconomic development engine. With six key points of view and 12 central tasks and solutions, the Government will strive to achieve a GDP growth of 6-6.5% and GDP per capita of US$3,900; disburse 100% of the planned public investment fund; develop culture in harmony and on par with socioeconomic development; and improve the capacity of the health system, especially preventive medicine and primary healthcare. However, to run that machine, it is necessary to have energy sources or resources or comprehensive resource models to work fully and sustainably in today's volatile global environment.

Resolution 01 and other following resolutions of the government early in the year underlined resources such as state budget, infrastructure development, culture and business environment among others. However, according to economists, at the macro level, to achieve sustainable development and fulfill socioeconomic development tasks, it is necessary to mobilize all national resources more comprehensively. Moreover, for sustainable and consistent socioeconomic development, it is necessary to have a comprehensive resource model for the socioeconomic machine to work smoothly and perfectly in a 3-D metaverse: Economy, Society and Environment

Five key resources

According to economists, in a market economy, capital sources are a key factor to run the entire economy, including five types of capital: Finance, resource, material, people and society. All resources are capable of creating output product lines to fulfill socioeconomic development tasks. Financial capital facilitates economic production even though it is not production itself. Finance plays an extremely important role in the development of any country. Therefore, finance is always a top instrument of sanctions of large countries against hostile countries. Resource capital is made up of natural resources and ecosystem services. Wherein, the geopolitical position of a country is also an important resource capital. Vietnam, with an important position on the East Sea, is always an indispensable partner in the agenda of the Indo-Pacific region. Physical material capital includes all the physical assets that a country produces. It shows not only the competitiveness but also the prestige and potential of a country when others often flaunt their security strength with advanced weapons they made. This resource also makes it possible for some countries without natural resources to make many material products and become rich. Human capital is an individual's productive capacity, inherited and acquired through education and training. Human strength will be maximized in a society with guaranteed salary, working conditions and social security policies. Social capital refers to institutions that help maintain and develop human capital through partnership. If social activity brings any potential benefit or cost, it may be reasonable to consider it a source of social capital. These can include factors that bolster social interaction and exchange, develop norms for these interactions, and even factors that form beliefs and values that are part of social culture. The strength of social capital comes from the scale of political-economic institutions, legal environment, business, culture, education, social organization and family, among others.

Sustainable development toward a prosperous society requires quantifying, mobilizing, using effectively, and above all, increasing all capital sources, including natural resources, which are often exhausted due to economic production. In other words, national resources must be actively and effectively managed.

Active and effective resources management

Effective resources management means maintaining and, if possible, enhancing the five capital sources rather than depleting or degrading them. Should these also be core contents of action programs and resolutions of the Government, central and local authorities to achieve annual socioeconomic development goals consistently and realistically? In essence, the five resources must be linked together and must be managed synchronously with economic development. Socioeconomic goals can be successfully achieved, based on resources, often with only one optimal solution. A sustainable socioeconomic engine must be operated by the Government to create the desired flow of goods and services by using capital sources without depleting them.

Should it be necessary to focus on restructuring and streamlining the apparatus as stated in the Document of the 13th National Party Congress: “…Continue to reform governmental organization and operation toward leanness and efficiency and effectiveness" to successfully manage the five resources to not only recover the economy in the wake of the pandemic but also carry out socioeconomic development plans and strategies. It is necessary to consider the five resources as a means and an end to lead the nation to prosperity.

The business sector can identify new business models to create more national quality products in the context of the Fourth Industrial Revolution to enhance resource efficiency during production processes and needs to understand that “less material” can mean “more value”. Building a good business culture contributes to the increase of the country's social capital. 

People need to be more aware of the role that each of us can play through product selection, cultural construction and social consumption behaviors by preserving sustainable traditions and respecting the law.

The Communist Party of Vietnam has determined that one of the key tasks of its 13th Congress is "Arousing aspiration for development towards a prosperous and happy country". In that process, actively and comprehensively managing the five resources - Finance, resource, material, people and society - will be the five golden stars that bring the socioeconomic machine into a metaverse of three pillars - Economy, Society and Environment - to work toward the vision of a country of rule of law and humanity as Vietnam celebrates the 100th anniversary.

By Dr. Doan Duy Khuong, Former VCCI Vice President