TFP and the challenge of double-digit growth in Hue City

Using data for 2020 - 2025 and a growth-accounting approach based on the Cobb - Douglas production function, this study quantifies the contributions of labor, capital, and total factor productivity (TFP) to Hue City’s GRDP growth. The findings indicate that TFP is critical to achieving double-digit growth, particularly given slow labor-force expansion and the need to improve the efficiency of additional capital investment. The study recommends shifting policy from input expansion toward improving input quality and efficiency, with priorities including technological innovation, digital transformation, human capital development, investment efficiency, high-value-added industries, innovation, and institutional improvement. It also proposes establishing city- and sector-level TFP monitoring systems as a key indicator for local growth management.