On the occasion of the Lunar New Year 2026, speaking with VietNamNet, former Minister of Planning and Investment Vo Hong Phuc emphasized that if Vietnam wants to reach double-digit growth, it must carry out sufficiently deep institutional reform and act decisively to unlock resources among the people.

We cannot move “steadily”

After the 14th Party Congress, Vietnam entered what has been described as a “new era” with the ambition of double-digit growth. If we do not pursue high growth, the opportunity to rise to high-income status may slip away, especially as the demographic golden period will last only about another decade. How do you view this goal?

Vo Hong Phuc: I fully support the objective set by the 14th Party Congress - to build a new era of development for Vietnam.

If we continue to move slowly and evenly as before, nothing will change and no breakthrough will occur. The countries around us are not standing still. I recall that during Prime Minister Vo Van Kiet’s tenure, we once set the goal of catching up with Thailand. But whenever we moved closer, they moved further ahead.

Therefore, without a genuine breakthrough, we will never catch up. If we move forward one step while others advance two, our relative position remains unchanged. To alter our standing, we must adopt a more resolute approach and make a stronger leap.

I believe the direction outlined by General Secretary To Lam - opening a new era and a new phase of development - is correct. But to achieve that, we must invest strongly, change our methods and, above all, act decisively. That is also the aspiration of the people.

In your view, how is that decisive spirit being reflected in reality?

After the 14th Party Congress, I have observed some positive signals. Let me cite a specific example in Hanoi: La Thanh Road.

Anyone who has lived in Hanoi for decades knows this road has been discussed since the 1990s. Through successive administrations, certain sections were expanded, but the project was never completed. The reasons were numerous, mostly related to land clearance, procedures and compensation.

In reality, had it been done earlier, clearance costs would have been far lower. Much of the land along the route was agricultural at the time, not residential, so compensation costs were modest. It is a vital traffic artery, yet hesitation caused missed opportunities.

Now, with new leadership acting decisively, tasks once deemed “impossible” have proven feasible. If action had come earlier, costs would have been significantly lower.

This example makes one point clear: once a goal is set, action must follow - and action must be thorough and resolute.

There are many other such examples. I believe this decisive spirit is precisely what the public expects from the new term and its leadership.

Resolute action

Beyond ring roads, more than 3,000 stalled projects remain, with total capital of about VND2.4 quadrillion (US$98 billion). If these bottlenecks were removed decisively, could Vietnam accelerate faster?

Indeed, these are major impediments to development.

One key issue lies in our operational mechanism, which emphasizes consensus. We discuss at one council, then at another level if opinions differ, and continue reconsidering at party committees. When dissent arises, momentum weakens.

At this stage, we must still uphold democratic centralism: discuss thoroughly and fully. But once a decision is made, implementation must be concentrated and unwavering. Leaders must take responsibility, dare to decide and dare to act. Only then can longstanding problems be resolved.

Other countries have shown this. South Korea under President Park Chung-hee or Singapore under Lee Kuan Yew achieved rapid development through centralized authority combined with decisive governance. With unified will and strong political determination, difficult issues were addressed.

Does Vietnam still have the opportunity for similar development?

I believe we do.

Vietnamese people possess advantages not every nation shares. International partners consistently describe Vietnamese as intelligent, adaptable and quick to learn.

We are also a unified nation with a long history of resilience. Yet the window of opportunity is narrowing. The demographic golden period will not last. In about ten years, population structure will shift and opportunities will shrink.

If we fail to seize this moment, we risk falling into the middle-income trap. We must confront this reality and act promptly.

Ultimately, must development begin by unlocking people’s resources?

Absolutely. The largest resource of any country lies in its people.

Development cannot rely on a single segment. It must start with each citizen having the conditions to work, innovate, invest and contribute. Only when society as a whole participates can development be fast and sustainable.

Liberating the mind

The Political Report of the 14th Party Congress calls for a new growth model focused on productivity, quality and competitiveness, driven by science, technology, innovation and digital transformation. That requires institutional change. Do you agree?

Yes. Innovation requires individuals to have space, environment and motivation to create.

The core issue is liberation - liberating thinking. If people remain constrained, fearful of mistakes or risk, genuine innovation will not occur.

We must foster a clear direction to mobilize creative forces. That means open institutions and strong incentives so that citizens and enterprises dare to think and act.

The National Innovation Center and global innovation networks have been established. Is that sufficient?

Not yet. Innovation cannot rest solely on buildings or centers.

Institutions must be open and trustworthy enough to gather and connect Vietnamese intellectual resources at home and abroad. Innovation resides in people - not in equipment. A broad, capable intellectual community must be empowered.

Without institutional openness, double-digit growth is unrealistic. The old model of resource extraction and cheap labor is no longer viable.

I believe in the capacity and energy of Vietnamese people. Foreign investors consistently praise their intelligence and aspiration.

I recall Vietnamese students in Japan who began in small groups and built thriving technology firms. Even the Japanese Prime Minister visited them early on. They flourished because the environment compelled continuous innovation.

When they return to Vietnam, however, institutional bottlenecks remain. Many startups register in Singapore, not because they prefer it, but because procedures there are transparent and efficient.

If we do not reform institutions and administrative procedures, especially at the startup stage, we will struggle to retain talent and harness national energy.

Growth on a stable macroeconomic foundation

Double-digit growth must go hand in hand with macroeconomic stability. Can Vietnam rely on the old model of expanding credit and cheap resources?

Growth requires investment. But efficiency is decisive.

Vietnam’s incremental capital-output ratio remains around 6-6.5. To raise GDP by 1 percent, investment must rise by more than 6 percent. Maintaining that while targeting double-digit growth would endanger macroeconomic stability.

In more efficient economies, the ICOR is around 3-4. Ours is nearly double.

To achieve high yet stable growth, we must raise investment efficiency and expand private investment, especially domestic SMEs.

Vietnam lacks globally competitive industrial conglomerates comparable to those in South Korea or Japan. Many large firms concentrate on real estate or finance, rather than manufacturing. Only a few - such as FPT in software, Vinamilk in food processing, Hoa Phat in materials and Masan in consumer value chains - represent industrial capacity.

Expanding a robust ecosystem of production-oriented enterprises, particularly SMEs, must be a pillar of the growth strategy.

Institutional reform remains the “breakthrough of breakthroughs.” If decisions are made but implementation hesitates, growth will stall.

Democracy means thorough discussion, but once resolved, concentrated action must follow. Only action produces results.

Otherwise, even well-crafted resolutions will not deliver substantive change to the economy or to people’s lives.

Tu Giang-Lan Anh