On April 10th, the Department of Finance, the City Institute for Development Studies, and University of Finance - Marketing jointly organized a national scientific conference titled “Innovating the Growth Model and Creating Breakthrough Growth Drivers for Hue to Enter a New Era”. The conference was attended by Mr. Nguyen Van Manh, Member of the City Party Committee and Vice Chairman of the City People’s Committee, along with leading experts and scientists.
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| Vice Chairman Nguyen Van Manh (center) of the People’s Committee of Hue, chairs the conference |
Innovating the growth model
After nearly one year of operating under a two-tier local government model, Hue is entering a pivotal phase: transitioning from “foundation building” to “accelerated development”, from organizational consolidation to the creation of substantive, effective, and sustainable growth drivers. This reality requires a reassessment of the growth model, accurate identification of bottlenecks, and the establishment of new development drivers aligned with the city’s status as a centrally governed municipality, particularly one defined by its unique heritage characteristics.
According to Vice Chairman Nguyen Van Manh, the city’s economy has achieved many positive results in recent years, with relatively stable GRDP growth, an expanding economic scale, and a positive shift in economic structure. However, the current growth model still relies heavily on traditional factors; labor productivity and innovation capacity remain limited, and most enterprises are small- and medium-sized with modest competitiveness. In the context of digital transformation, green growth, and deep international integration, models based on natural resource exploitation and low-cost labor are no longer suitable. Hue must therefore shift toward growth driven by knowledge, technology, innovation, and sustainability.
Accordingly, the city’s growth model needs to be restructured toward an integrated, multi-pillar approach, in which development drivers are closely interconnected and mutually reinforcing. Digital transformation and the digital economy will serve as the foundation for improving productivity and governance efficiency; green growth and the circular economy will become distinctive competitive advantages. Tourism and services will remain a spearhead sector but will shift toward greater depth, improving on quality and added value. Urban development will combine modernization with cultural preservation, harmonizing a heritage city with a smart city. At the same time, high-quality human resources and an innovation ecosystem will be key factors ensuring a substantive and sustainable transformation.
Creating new growth drivers
According to Assoc. Prof. Dr. Pham Tien Dat, President of University of Finance - Marketing, Hue faces the challenge of maintaining high and stable growth while improving growth quality. To achieve this, the city must treat the development of high-quality human resources as a strategic breakthrough.
This requires creating favorable mechanisms, procedures, and an investment environment to pilot demand-driven training programs for urgently needed workforce segments, as well as developing scholarship policies and talent attraction funds tied to commitments to work in Hue. Attracting high-quality human resources also demands building a comprehensive living and working ecosystem, not merely symbolic invitations. The city needs incentive policies to attract lecturers, experts, scientists, and entrepreneurs to collaborate with universities, such as housing support, research conditions, funding for applied research, commissioned research programs, and creative working spaces.
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| Business production activities contribute significantly to the city’s overall growth |
Based on an analysis of Hue’s current development, Prof. Dr. Tran Tho Dat, Chairman of the Scientific and Training Council at the National Economics University, pointed out that the existing growth model faces a structural paradox. Despite possessing outstanding advantages in cultural heritage and natural ecosystems, Hue has yet to effectively transform these into sustainable growth drivers due to a lack of technological foundations and integrated policy mechanisms. This highlights the need to shift from an extensive growth model based on resource exploitation and traditional services to an integrated growth model.
Accordingly, the model proposed by Prof. Dr. Tran Tho Dat is built on three core principles: digital transformation and green growth; economic development associated with the preservation and promotion of heritage values; and strengthening the role of local government, shifting from administrative management to coordinating the socio-economic ecosystem through data, institutions, and integrated policies.
At the discussion session, delegates also proposed a number of key solutions for Hue to achieve breakthrough growth, such as innovating the growth model based on heritage and technology; improving institutions and policies; upgrading strategic infrastructure; and developing high-quality human resources. In addition, they emphasized that in achieving growth targets, the business community plays a central role, as growth can only be generated through production, business activities, and the market. Therefore, enterprises in the locality need to proactively innovate business models, improve the quality of products and services, and promote the application of technology to enhance competitiveness. At the same time, the role of the community should also be strongly promoted. When the community becomes the central actor in the development process, it will drive sustainable economic growth.