Essay the miraculous development of china’s economy

DIPLOMATIC ACADEMY OF VIETNAM FACULTY OF INTERNATIONAL ECONOMICS ESSAY THE MIRACULOUS DEVELOPMENT OF CHINA’S ECONOMY Subject: International Economic Relations Lecturers: Lam Thanh Ha, Ph.D & Nguyen Ngoc Ha, M.Econ Class: KTQT48C1 Group members Student ID Lê Thị Minh Ánh : KTQT48C1-0141 Trần Bình Dương : KTQT48C1-0164 Nguyễn Thị Nhật Linh : KTQT48C1-0225 Vũ Hà Phương : KTQT48C1-0284 Trần Thu Uyên : KTQT48C1-0349 Hanoi, 2022 TABLE OF CONTENTS INTRODUCTION CONTENT Theoretical basis I The factors affecting economic growth Some features of China 2.1 Geographical location 2.2 Population 2.3 Politics 2.4 Culture - Society 2.5 History of trade and economic growth II The miraculous development of China’s economy Stages of development 1.1 The economy before the reform 1.1.1 Severe consequences after war 1.1.2 Economic Institutions 1.1.3 Development policies 1.2 The first steps of the reform 11 1.2.1 The first step is to form a synchronous and independent economy (1978) 11 1.2.2 China’s economic reform lines and policies up to 1983 12 1.3 The period of turmoil and uproar 14 1.4 The period when China built a socialist-oriented market economy institution 16 The main sources of China’s economic growth 18 2.1 Profound change in macroeconomic policies 18 2.2 State-owned enterprises reform 19 2.3 Banking system reform 19 2.4 Implementation of the application of electronic technology in various aspects of the Chinese government 19 III Opportunities, challenges and lessons learned from China 20 ASEAN 20 Viet Nam 22 2.1 Opportunities 22 2.2 Challenges 23 2.2 Comments and Lessons for the Vietnamese Government 23 CONCLUSION 26 REFERENCES 27 INTRODUCTION China's economic breakthrough is a panorama of economic transformations in China during 30 years of continuous development of reform and opening up During that development period, there were many difficulties and challenges in changing awareness, while socialist ideology was dominating the economy, there was a fierce struggle between socialism and capitalism In addition, China's economy has made achievements All three forms of structural change-relative expansion of the trade sector, of the private sector, and other non-agricultural sector are found to raise the growth rate Each change primarily represents an improvement in the efficiency of the economy, moving it towards its production frontier We conclude that such improvements in productive efficiency have been an important part of the explanation for China's fast growth With the information and assessments presented in this article, our discussion group hopes to help us better understand the important policies that make up the success of economic reform in China From there, draw useful lessons for each individual to continue to contribute more to the innovation in our country CONTENT I Theoretical basis The factors affecting economic growth Natural resources: are the most important factor influencing an economy's development The abundance of natural resources is critical for economic growth A country lacking in natural resources may be unable to develop rapidly Human Resource Development: Good quality of the population is critical in determining the level of economic growth As a result, investment in human capital in the form of educational, medical, and other social schemes is highly desirable Human resource development improves people's knowledge, skills, and capabilities, which increases their productivity Free trade and protectionism: Removal of tariff barriers can increase exports, contributing to economic development Asian countries, such as Korea, Taiwan, and China have all benefited from the removal of tariffs Technological progress: primarily entails research into the use of new and improved methods of production or the improvement of existing methods Technological advancement increases the ability to make more effective and fruitful use of natural and other resources for increasing output.1 Some features of China 2.1 Geographical location China is located in the east of Asia, on the western Pacific coast, has a large territorial area of 9.6 million km2, and is the third largest country in the world, only after Russia and Canada China's land border is over 200,000 km long East and South-East look out to sea China has a long, flat coastline, has many beautiful harbors, most of which not freeze all year round On the other side of the coast are the neighboring countries: Japan, South Korea, Philippines, Brunei, Malaysia, and Indonesia 2.2 Population https://prepp.in/news/e-492-factors-affecting-economic-growth-indian-economy-notes accessed in 19/10/2022 China is the most populous country in the world, currently with a total population of 1.41 billion people by 2021 By 2020, China's urban population are about 60.8% 2.3 Politics According to the Chinese constitution, the People's Republic is a socialist country of the people's dictatorship, led by the working class Party in power: The Chinese Communist Party was founded on July 1, 1921 2.4 Culture - Society China is one of the great civilizations of humanity, which represents part of the Eastern ideology Throughout history, through each dimension, Chinese culture has developed new steps 2.5 History of trade and economic growth China was not always a closed economy, even before the reforms in the 1970s From 1949-1960 China was open to trade but its only trading partner was the Soviet bloc2 They imported steel and machinery and exported textiles and food International trade was even encouraged during the period of the Great Leap Forward When the Great Leap Forward turned out to be a failure and the country faced an economic crisis, China started retreating into isolation The early 1970s was the worst period in time in terms of international relations as China strived for complete self-reliance3 It was clear that China needed to something about its economic system to keep up the economic development Hence, opening up to trade was the best solution Another reason for the economic reform was to restore people’s faith in the Chinese Communist Party (CCP) After the economic stagnation that followed the Great Leap Forward and Cultural Revolution, there needed to be an improvement in the standard of living to restore the political support for the CCP Promoting economic growth was a way of providing legitimacy to the party Naughton, The Chinese economy: transitions and growth, 2007, p 379 Ibid., p 379 Ding and Knight, China's Remarkable Economic Growth, 2012, p 44 China had also witnessed the economic success of the West and other Asian countries and regions, such as Taiwan, Hong Kong and South Korea They had reached economic growth by using a free market and open economic policies If it worked for other countries, the CCP figured it should work for China II The miraculous development of China’s economy Stages of development 1.1 The economy before the reform 1.1.1 Severe consequences after war Agriculture in this period was backward, with low productivity, mainly done by manual method The technical industrial base is too weak, small scale, backward, and has low output The transport business was not developed: traffic was destroyed during the war, coastal ports are outdated, and the ability to operate is limited The education system is backward, and the illiteracy rate is high (80%) Science and technology seem to have no achievements 1.1.2 Economic Institutions China's economy in this period was completely under the unitary public ownership system, which was completely under public ownership Only individuals are formed and the economic sector is the state-owned economic sector, the private sector is not encouraged to develop, this sector is only considered as a supplementary source for the public-owned economy The shareholding regime and joint stock cooperation are considered products of capitalism Therefore, the goods produced according to the plan and determined by the State, plan is legal, with restrictions on the business of enterprises, as well as the right to buy and sell products by themselves 1.1.3 Development policies a Period of economic recovery (1949 - 1952) In 1950, rural China carried out land reforms and built cooperatives By 1952 the land reform was complete In 1951 there were 300 cooperatives and by 1952 it had risen to 4000 cooperatives In terms of industry and trade, the nationalization of industrial and commercial establishments of foreign capital and bourgeois trade began b First five-year plan (1953 - 1957) In 1952, the Chinese Communist Party set out a common line for the transition period Over a long period, gradually carry out socialist industrialization, agricultural reform, handicraft and capitalist industry in the direction of socialism Regarding economic development, China advocates the implementation of socialist industrialization with the method of building and developing heavy industry as the center, including electricity, iron and steel, and chemicals Regarding agricultural production, the movement of technical improvement and construction of irrigation works has contributed to promoting agriculture development The annual growth rate of agriculture reaches 4.5% The socialist production relationship has been popularly established and determined to play a leading role in the development of the economy Industrial production and agriculture have all made significant progress c Economics from 1958 to 1978 Firstly, the “Great Leap Forward” Period (1958 – 1965) In September 1956, the Chinese Communist Party Congress met and reaffirmed the construction of the technical and material basis of socialism The Congress also set out the economic targets of the second five-year plan (19581962) China launched the pink flags movement: "Common lines, leaps, and bounds of civil society" In industry, China practices high levels to develop heavy industry such as metallurgy, machine building, chemicals, and electricity Due to the focus on heavy industry development, China has fallen into a serious imbalance between industry – agriculture, heavy industry – light industry In agriculture, China has built commune workers, each commune has about 5000 farmers China has expanded the concentration of production materials of farmers, the family economy has been eradicated, and implemented the policy of distribution on average under the motto “the whole country eats a big rice cooker, the whole country is at the same level of going up to socialism, the poorer the revolution"5 The 9th Central Conference (1/1961) of the Communist Party of China proposed adjustment measures to restore the economy Policies and measures have promptly addressed the inadequacies of the economy Agricultural production in 1965 reached 200 million tons.6 Secondly, the "Cultural Revolution of the proletariat" (1966-1976) China continues to invest in the industry, especially the military industry In agriculture, the workers of the commune returned to the policy of strengthening the socialization of production materials and the labor force The policy of forced labor and per capita distribution in the communes make farmers no longer interested in production Three years of the "Cultural Revolution" period, the output of all types of industrial products decreased or did not increase Thirdly, the economy of the "Four Modernizations" period (1976 – 1978) In 1976, China advocated the implementation of "Four Modernizations": industrial, agricultural, scientific-technical and defense with very large goals China tries to accelerate its accumulation, boost its equipment imports and borrow foreign capital The cumulative share of national income increased to 36.5%.7 Economic developments from 1976-1978 reflect impatience, which is a continuation of the "Great Leap Forward" policy Therefore, leading to serious impacts on the economy, in the period 1976 - 1978 China had to import a quantity of food and food accounted for 20% of the total value of imported goods In industry, the concentration of investment in heavy industry has caused serious imbalances with the light industry Leung, J C (1994) Dismantling the ‘iron rice bowl’: welfare reforms in the People's Republic of China Journal of social policy, 23(3), 341-361 Asian Survey Vol 6, No 10 (Oct., 1966), pp 589-603 (15 pages) Published by: University of California Press Agricultural Development: The Key Link in China's Four Modernizations Program, Robert F Dernberger Thus, the "Four Modernizations" policy given by China is not an easy problem to implement China was aware of the impatient policy that could not bring about the desired economic effect • Achievement - After three years of economic recovery, the total value of agricultural industrial output reached 177.5% The financial, price and monetary situation has also stabilized, and people's lives have improved - The socialist production relationship has been popularly established and determined to play a leading role in the development of the economy - Austerity policy to build socialism - Reducing inflation at the end of 1950 • Failure In industry, - Industrial distribution has many irregularities - Asynchronous industries, agriculture mechanization, the rubber industry, and organic chemistry are all white areas - The industrial base at this time was small scale, had outdated technology, and was low in output In agriculture, - Natural economy, outdated technology, low productivity due to rudimentary and outdated farming methods - The war left many lands deserted - Limited capacity to resist natural disasters and floods In education, science, and technology, - Illiteracy of people - The cultural level is low - Science and technology are white patches 10 In 1978, from the unclear policy environment, outdated equipment and facilities, China renovated tens of thousands of state-owned enterprises, concentrated on building special zones in places with attractive locations, low economic power in Shenzhen, which attracted FDI and foreign techniques In addition, the foreign currency reserves after 30 years have increased tenfold (more than 1,700 billion USD) In 1979, although the economy began to recover, national enterprise performance was low But based on the measures previously introduced, factory operations gradually improved, creating a new climate for the economy.11 In May 1980, Shenzhen became China's first special economic zone (SEZ)12 in an effort to attract investment and technological power from Hong Kong In just four years, more than ten special economic zones have been established along China's eastern coast, from Bac Hai in the south to Dai Lien in the northeast The special economic zones became the focal points for China's magical economic development In general, the essence of the opening reform in China is the transition of the economic model from a centrally planned economy to a market economy with Chinese colors The opening method is prudent, price liberalization is carried out step by step and there is no use of "shock therapy" in reforms; focus on handling the relationship between local reforms and institutional reforms China has adopted methods that are both bold and solid such as combining key breakthroughs with comprehensive push, pilot before and after expansion The expansion of reforms is gradual and orderly, thereby avoiding unnecessary social disturbances, effectively limiting and preventing risks in reforms 1.3 The period of turmoil and uproar From 1984 to 1991, the focus was on state-owned enterprise reform, with price reform playing a critical role in the overall reform 11 Fang, C., Garnaut, R., & Song, L (2018) 40 years of China’s reform and development: How reform captured China’s demographic dividend In C Fang, R Garnaut, & L Song (Eds.), China’s 40 Years of Reform and Development: 1978–2018 (pp 11-13) ANU Press 12 First four SEZ are Shenzhen, Zhuhai, Shantou, and Xiamen 14 The Third Conference of Central Committee Members, term xii, issued a "Decision on Economic Institutional Reform" in October 1984, with the following contents13: - Putting the vitality of businesses first - Implement synchronized market price reform - Reform of macroeconomic institutions, in conjunction with many other fields - Allow access to foreign affairs The two-price system: "price within the norm" and "price outside the norm", protects the interests of state-owned enterprises, maintains the prices of the planned economy period, and opens up a part of the market that is not owned by the state having the opportunity for rapid development but on the other hand embezzlement and corruption In March 1988, the Central Government decided to loosen regulation, abolished the "two-price system" and implemented the policy of "dumping" which made product prices increase rapidly However, the dumping quickly spiraled out of control, and inflation gained momentum again In 1989, the application of the austerity program: checking tax evasion of companies, liquidating new enterprises operating outside the system of stateowned enterprises, caused the lowest economic recession since 1978 One distinguishing feature of China's institutional reform is the emergence of new forms of ownership In the 1980s and early 1990s, the collectively-owned 'township and village enterprises (TVEs) experienced a significant expansion and played a catalytic role in pushing China toward a market economy Several factors contributed to the rapid development of rural industry in China, the most important of which was access to previously protected or empty markets, their competitive advantage from low wages, and local government support.14 13 Claustre Bajona and Tianshu Chu, China’s WTO Accession and Its effect on State-Owned Enterprises, 2004, p.4 14 Ding and Knight, Why has China grown so fast, 2009, p.16 15 • Achievement - Business fever, the explosion of the first generation of entrepreneurs in China, many famous companies were born in 1984 - Foreign trade develops fast - Aggregate output accounts for most of the total value of industrial output - Liberation of thought and reform has become the common voice of the public • Failure - The failure of the two-price policy and the out-of-control inflation - Negative and corrupt phenomena of government agencies and society 1.4 The period when China built a socialist-oriented market economy institution National Congress of the Communist Party of China was held in Beijing, recognizing the achievement that was made since the end of 1978, methodically analyzing the practices and experiences over the preceding 14 years, delivering a dazzling presentation of Deng Xiaoping's Theory 15 of creating socialism with Chinese characteristics, and identifying the important tasks in reform and economic and social growth in the 1990s And from there, a goal was set, and it was to re-mold China’s economy to create a socialist market economy system with Chinese characteristics The Great Price War and the blooming of Chinese domestic goods occurred in 1994 Chinese enterprises thrived, while foreign firms flocked to China for profit If we take features and pricing into comparison, Chinese consumers were more concerned with product prices Domestic Chinese goods are half the price of foreign companies’ goods That is why foreign firms lost the price war 15 It is a complete scientific system that embraces philosophy, political economics, and scientific socialism It was first introduced in the 12th National Congress 16 Indicators of Chinese economic performance from 1996-1998 (in percentage)16 Source: Culculated from China Statistical Yearbook, 1998, and China Monthly Statistic, January 1999 In 1997, the Asian financial crisis broke out in Thailand It spread to multiple parts of Asia, creating a major problem for regional and world economies China somehow escaped the direct effect of the crisis but suffered secondary consequences, which led to a slowdown in growth in late 1997 Numerous meetings were held by China’s top leaders, with the themes revolving around how to avoid the devastation caused by the financial crisis They found out that many root problems of the crisis in Thailand, Malaysia, Indonesia, and Korea existed in China as well The only way to avoid the damage from an international crisis is to focus on increasing control over its financial system It became such a priority for the government that it was considered a problem for national security One of the highlights of the reforms during this time was the improvement of the banking system as well as the non-bank one During the difficult time, China identified three urgent tasks: to prevent the yuan from depreciating, to stimulate the national economy, and to help stateowned companies get out of existing problems in three-year time In 1999, the Central Bank announced a decrease in the interest rate, and “stock rules” were put into effect On November 15, 1999, China officially obtained the ticket to enter the globalized world of the WTO, culminating in the emergence of large-scale state-owned firms with record profits Large-scale Chinese firms have 16 https://chinapower.csis.org/?s=growth+rate 17 begun to arrive in global markets such as New York, and Hong Kong, all the while foreign companies decided to make their way into China, opening up a new wave of privatization In 2018, a trade war broke out between China and America It started when former president Donald Trump decided to impose tariffs on imported goods from China as a response to allegations that China was stealing technology and intellectual property China retaliated by imposing tariffs on U.S products The trade war continued to escalate for four years, and it is speculated that it might no longer be just a trade war, but a full-on cold war between the two powerhouses Covid-19 was discovered in China in late 2019, forcing the country to enter hard lockdowns and initiate the strategy that is later known as “Covid-Zero” The strategy was highly effective, allowing China to re-open the economy in 2021 to recover after lockdowns and grow more strongly than any other country After over 40 years of reform, China’s financial scale is ever-growing, starting from being one of the poorest countries in the world to being the second largest economy in the world, just after America Not only that but China’s social welfare has also been improved, further contributing to the economy Overall, China’s contribution to the international economy is only going up The main sources of China’s economic growth 2.1 Profound change in macroeconomic policies China's economic policy is increasingly loosening instead of the government tightly controlling the market Started 20 years ago with agriculture, then expanded to the industrial sector and finally the service sector These are the correct perceptions of the Chinese government when opening up the economy and participating in the market economy The business environment was further improved by allowing foreign to direct investment in China, reducing taxes, abolishing the state's import-export monopoly and ending the system of applying multiple exchange rates17 17 A system where a country will have both fixed and floating foreign exchange rates at the same time, and both can be used when exchanging currencies in that country 18 China joined the International Trade Organization (WTO) in 2001 Since then, China has standardized a large number of laws and regulations, creating the prospect of further tariff reductions During 2004-2005, China's government removed regulations that prevented private companies from entering certain sectors of the economy such as infrastructure, public utilities and financial services They emphasized the role of the private sector and protected private property from tyrannical expropriation18 2.2 State-owned enterprises reform China's government has carried out a sweeping reform program in the stateowned part State-owned enterprises have been converted into corporations in the form prescribed by law and many types of companies have been listed on stock exchanges 19 The program reduced the number of state-controlled industrial enterprises by more than half within five years 2.3 Banking system reform China carried out drastic reforms to prevent banks from being affected by foreign loans and the weakness of the banking system The government's goal is to move towards a more flexible exchange rate Banks have begun to modernize their lending and risk management methods The National Bank has applied the method of calculating the balance of risk distribution and the classification system of overdue debts for banks In 2005, China's government revalued the renminbi and allowed China more flexibility in controlling inflation in the product market In this way, market power will play a further role in determining the bank interest rate of China's economy 2.4 Implementation of the application of electronic technology in various aspects of the Chinese government China has realized a market size with a large number of young Internet users who can quickly adapt to digital technology The Chinese government encouraged electronics companies to create various internet-based business models Since 18 19 The governmental seizure of property or a change to existing private property rights, usually for public benefit Servers as a market where financial instruments like stocks, bonds, and commodities are traded 19 then, it has created a revolution in the way of doing business, putting great pressure on the traditional business So, in order to survive, companies must develop according to new technology trends, up to the present time it is 4.0 China saw the development of the digital economy as a solution to help rebalance the general economy to avoid relying too much on infrastructure construction Therefore, besides policy making, the Chinese government has invested heavily in promoting the development of the creative economy through online activity III Opportunities, challenges and lessons learned from China ASEAN China has a long historical tie with Southeast Asia nations and has geological advantages in the area After the Cold War ended, China's engagement with the Association of Southeast Asian Nations (ASEAN) began anew China was invited to the ASEAN summit in Kuala Lumpur in 1991 and became a full dialogue partner in 1996 Since then, China has taken part in many activities in the ASEAN, strengthening economic relations At the same time, ASEAN member states have benefited tremendously from China’s economic growth Since 2009, China has been ASEAN’s largest trading partner, surpassing the US and Europe Trade between the two sides has more than doubled since 2010, and almost quadrupled since the ASEAN-China Trade in Goods Agreement in 2005 In 2019, FDI flowed from China to ASEAN placing it in fourth as one of the largest sources of FDI among ASEAN’s Dialogue Partners Despite the COVID-19 outbreak, the trade level between China and ASEAN in the first half of 2020 increased by 2.2%, miraculously making them each other’s top trading partners The trade relationship between SEA countries and China is projected to strengthen further as China and the US aim to minimize their economic interdependence, and as China turns to Dual Circulation to grow its economy 20 ASEAN’s Major Trading Partners20 Source : ASEANstats Aside from the positive impact and achievements, the ASEAN-China economic relations also pose problems In 1994, the yuan devalued, and many foreign investors saw this as an opportunity to move away from Southeast Asia to invest in China Foreign direct investment in ASEAN continued to decline, creating a sort of competition between ASEAN and China A survey from Japan also revealed that 57% of Japanese manufacturing transnational corporations view China as a more attractive destination than Thailand, Malaysia, Indonesia, and the Philippines Trading was a great concern, as China was furiously trying to start free trade agreements with ASEAN At the 10th ASEAN Summit in November 2004, the ASEAN countries published a united declaration expressing commitment to eliminate all tariffs between ASEAN and China by 2010 But it was not at all easy An experimental arrangement was set up between China and Thailand, with over 200 items having their tariffs eliminated The result was clear that Thailand got a “bad deal”21, so much so that it struck fear among all of the 20 https://www.aseanstats.org The deal wiped out northern Thai producers of garlic and red onions, crippled the sale of temperate fruit and vegetables; Southern China refused to bring down tariffs; overall forced Thailand into a "early harvest" experience 21 21 ASEAN countries, worrying that they are going to be the dumping ground for China’s competitive economic sectors Overall, we know for a fact that ASEAN, while it is a big entity comprising 10 countries, is still a much weaker economic force compared to China ASEAN countries rashly trying to come up with economic agreements with China will only lead to crises Viet Nam 2.1 Opportunities a On trade The rise of China has led to a growing demand for imports of raw materials, minerals, agricultural products, pre-processed products for export processing, as well as increased demand for imports of consumer goods, machinery, equipment from Vietnam Since then, the two-way trade turnover has risen sharply It can be seen that the bond in trade relations between the two countries overcome the negative effects of the economic crisis in 2008 As a result, China continues to be Vietnam's largest trading partner and second-largest export market b On the issue of renminbi internationalization This is a good opportunity for Vietnamese enterprises to use the renminbi instead of the USD in business with Chinese partners, in order to enhance bilateral trade This is also the most convenient thing for the business when both parties use the same currency This helps businesses reduce transaction costs, lower product prices; reduce the danger of fluctuations in foreign exchange rates because the USD has risen abruptly in recent years; reduce the demand for the USD, strengthen the ability to fuse and circulate capital, reduce the deficit in international revenue and expenditure with the Chinese In addition, because the Chinese state requires foreigners to sell goods to China to receive the yuan, this is a good opportunity for Vietnamese enterprises to boost exports and expand the market size to China 22 2.2 Challenges Asymmetric trade relations, Vietnam stands in front of the "free trade trap" One of the things of concern to Vietnam in its trade relations with China is the fact that the trade structure maintains the North-South status more and more clearly Vietnam's imports from China are mainly industrial goods while Vietnam's exports to China are mainly raw materials, agricultural, forestry and fishery products When considering the value of the group of imports, it can be seen that the Vietnam-China trade relationship not only has a quantity asymmetry but also a disturbing quality asymmetry exists.22 Besides, there are some other challenges: - China's Strategy for ACFTA23 - The challenge from the rise of China's economy for Vietnam will be much stronger than that of other ASEAN countries - Our development is currently underperforming because it has not reached its comparative advantage, and it also relies on investment capital from the budget and concessional loans from abroad 2.2 Comments and Lessons for the Vietnamese Government a Applying science and technology to the digital economy The rapid shift towards digitization helps Vietnam to enter an increasingly powerful digital economy with many digital economy businesses being born Vietnam has recorded the emergence of digitization trends in many fields and economic sectors, from commerce and payment to transportation, education, and healthcare 22 A t (2014, 07, 01) Canh giac voi bay "tu hoa thuong mai" Tapchitaichinh.vn ACFTA: China Free Trade Area The economic relations became more intense after the signing of the Framework Agreement and subsequently, the ASEAN-China Free Trade Agreement in 2004 which provide a sound basis for increasing trade and investments flows between ASEAN and China 23 23 However, in order to achieve the goal of developing a digital economy to reach 20% of GDP by 2025 24 and develop a strong digital business community, Vietnam's transition to a digital economy still faces many difficulties because of the existence of a digital economy limitations in terms of human resources, infrastructure and awareness of the social community The government should strongly encourage management thinking related to technology Specifically, at first, it is promoting the development of the digital economy with a focus on developing digital technology, shifting from assembling and processing IT to making digital technology products, industry 4.0 Secondly, both the government and the private sector need to make efforts to invest in upgrading digital infrastructure as well as modern digital technology solutions to deploy smart connected digital applications Thirdly, improving the quality of human resources The IT human resource training program should aim to accelerate the socialization of information technology education, update new technology trends such as AI, robotics Finally, the government needs to raise social awareness about the digital economy through agencies, businesses and schools Press agencies, information and communication media also need to orient public opinion, help society has the right awareness of the digital economy in order to best prepare and adapt to the trend of digital economy development b Training high-quality human resources Vietnam is implementing the goal of industrialization and modernization, making Vietnam basically become an industrialized country in the direction of modernity Therefore, human resource development must be associated with the process of industrialization, and must create a labor force to strongly promote this process Vietnam needs extensive reform in education and training programs, teaching and learning methods, strengthening the combination of education and training 24 Under Decision No 411/QD-TTg 2022 approving the National Strategy on the Development of the Digital Economy and Digital Society to 2025, signed by Deputy Prime Minister Vu Duc Dam on March 31, the target by 2025 is for the digital economy to contribute 20% of GDP 24 with production and business, and building a project to develop human resources for society In addition to reforming the education system in schools and universities, the state should also focus on training vocational skills for workers, promoting the socialization of education and training Training and developing human resources should be suitable to the needs of the labor market The trend of globalization is increasingly being extended which means international economic integration is inevitable Therefore, the modern economy requires Vietnamese workers to be able to quickly learn international knowledge while still inheriting and maintaining the cultural quintessence of the nation 25 CONCLUSION China remains a developing country and has similar national conditions to other developing countries in the world Compared to development theories from developed countries, China’s theory is better suited to help other developing countries seize opportunities and overcome difficulties as they promote industrialization and modernization and reach the goal of economic prosperity 26 REFERENCES China Overview: Development news, research, data World Bank (2022, September 29) Retrieved October 2022, from https://www.worldbank.org/en/country/china/overview Economic issues why is China growing so fast? International Monetary Fund (n.d.) Retrieved October 2022, from https://www.imf.org/EXTERNAL/PUBS/FT/ISSUES8/INDEX.HTM SAI DING and John KNIGHT (n.d.) EconStor Why has China Grown so Fast? The Role of Structural Change Retrieved October 2022, from https://www.econstor.eu/obitstream/10419/39945/1/7_ding.pdf Malin Jondell Assbring (n.d.) What factors affect economic growth in China? Retrieved October 2022, from https://www.diva-portal.org/smash/ Population, total - China Data (n.d.) Retrieved October 2022, from https://data.worldbank.org/indicator/SP.POP.TOTL?locations=CN Ross Garnaut, Ligang Song, Cai Fang (n.d.) China’s 40 years of reform and development - JSTOR Retrieved October 2022, from https://www.jstor.org/stable/j.ctv5cgbnk 27 TEAMWORK ASSESSMENT TABLE TASK STUDENT’S NAME Lê Thị Minh Ánh - The first steps of the reform ASSESSMENT 100% - Opportunities and Challenges of Vietnam - Powerpoint - Presentation Trần Bình Dương - The period when China built a 100% socialist-oriented market economy institution - Opportunities and Challenges of ASEAN - Powerpoint - Presentation Nguyễn Thị Nhật Linh - Stages of development 100% - Overview -Powerpoint - Presentaion Vũ Hà Phương - The main sources of China’s 100% economic growth - Comments and Lessons for the Vietnamese Government - Powerpoint - Presentation Trần Thu Uyên -The period of turmoil and uproar 100% - Overview - Powerpoint - Presentation 28