According to economist Nguyen Bich Lam, if the 1986 economic reform was a vital lifeline to “rescue” the national economy, then the “second renewal” in 2025 and the following years is the decisive condition for Vietnam to realize its aspiration for fast and sustainable development.

A historic turning point

Nguyen Thi Huong, Director General of the General Statistics Office under the Ministry of Finance, stated that since the 1986 reform, Vietnam has achieved significant socio-economic accomplishments. The country escaped underdevelopment and became a dynamic, deeply integrated, middle-income developing economy. Growth has remained relatively high, continuous, and inclusive, ensuring that all citizens benefit from the country’s progress.

After nearly 40 years, Huong shared that Vietnam’s economic size has expanded almost 106 times, reaching USD 476.3 billion in 2024, ranking 33rd in the world. GDP per capita has increased more than 63 times to USD 4,700. The average annual GDP growth from 1987 to 2024 was 6.67%, placing Vietnam among the high-growth nations in both the region and the world.

According to Huong, Vietnam’s economic restructuring has undergone multiple historical phases, bringing substantial results.

During the 1986–1990 period, which marked the beginning of the reform, Vietnam’s economy faced a severe crisis with triple-digit inflation. Market-oriented reform policies, especially breakthrough strategies in agriculture and the issuance of the 1987 Foreign Investment Law, provided significant momentum. This period also saw the Party identifying three key economic programs: prioritizing agriculture, emphasizing light and handicraft industries, and selectively developing heavy industry. These measures gradually stabilized the economy. By 1990, GDP was 7.3 times higher than in 1986, laying the foundation for stronger development in the 1991–2000 period.

After overcoming the crisis, the economy entered a robust growth phase. Resolution 07-NQ/HNTW, which focused on industrial development toward modernization by 2000, provided a crucial foundation. The industrial sector experienced notable growth. Even when the Asian financial crisis struck in 1997, Vietnam’s GDP still grew by 8.25%.

From food shortages, Vietnam rose to become one of the world’s top rice exporters, surpassing 9 million tons in 2024.

The GSO director assessed this period as a successful phase for Vietnam, marked by the transition to a market economy and effective inflation control. These achievements expanded GDP and strongly restructured the economic sectors. At current prices, Vietnam’s GDP in 2000 was 10.3 times that of 1990, placing the country among the fastest-growing economies in the region during the 1990s.

Between 2001 and 2010, Vietnam achieved an exceptional transformation. The economic structure gradually shifted from a primarily agricultural base to a model dominated by industry and services. Economic thinking also evolved, marked by the introduction of the 2000 Enterprise Law and the signing of the Vietnam-US Bilateral Trade Agreement in 2001. Multiple industrial development policies were enacted by the Prime Minister. Average GDP growth in this period was 7.12% per year - among the highest in the country’s modern history.

During 2011–2024, the economy continued to restructure. The service sector accounted for the largest share, followed by industry and construction, while agriculture, forestry, and fisheries held the smallest proportion.

Vietnam among the world’s high-growth economies

The 2011–2030 socio-economic development strategy, with a vision toward 2030, was actively implemented. Laws and policies such as the Investment Law, Enterprise Law, and Public Investment Law greatly supported business operations. Vietnam emerged as a country with globally competitive industrial capabilities, becoming a key industrial production hub in both the region and the world.

According to Huong, one of the key achievements after 40 years of reform is the consistent economic growth rate, even during challenging periods. Macroeconomic stability and inflation control were maintained. The average GDP growth of 6.67% per year placed Vietnam in the group of high-growth economies globally.

Vietnam’s economic structure shifted from agriculture to industry and services. In 1986, agriculture, forestry, and fisheries made up 36.76% of GDP; by 2024, this fell to 11.8%. Industry-construction and services accounted for 37.6% and 42.3% respectively.

In 2024, import-export turnover exceeded USD 786 billion, 267 times higher than in 1986, with a trade surplus for the ninth consecutive year. Processed and manufactured goods accounted for 85% of exports. From a country struggling with food shortages, Vietnam has become a leading rice exporter, with over 9 million tons shipped in 2024.

The second renewal

Dr. Ha Huy Ngoc, Director of the Center for Policy and Strategy on Local and Territorial Economy under the Vietnam Institute of Economics and World Economy, said that after nearly 80 years of independence and 40 years of reform, Vietnam has made significant strides and achieved historically meaningful development results. The country currently has 423 research institutions, around 4,000 startups, hundreds of investment funds, and incubators. Vietnam ranks 44th out of 133 in the Global Innovation Index. The digital economy contributes 18.3% of GDP, and the digital technology sector generated USD 152 billion in revenue. Vietnam’s capabilities, global position, and international reputation are growing.

The government has set targets of over 5,000 kilometers of expressways by 2030 and 41 expressways totaling over 9,000 kilometers by 2050.

According to economist Nguyen Bich Lam, while the 1986 reform was a critical decision to rescue the economy, the 2025 reform and following years are essential for realizing the country’s vision for sustainable development. To succeed, Vietnam must simultaneously reform five key areas:

First, reform economic institutions to ensure quality, transparency, and alignment with real-world needs. This will eliminate rent-seeking, corruption, and inefficiency. High-quality, coherent regulations prevent policy conflicts and ensure institutions drive development.

Second, build a true rule-of-law state “of the people, by the people, for the people.” The state must be visionary, effective, and people-serving, aligning political reform with economic reform.

Third, comprehensively reform the education system toward “original knowledge education.” Education should be a foundation for breakthroughs in science, technology, and self-directed development. Lam emphasized, “We need an education system that teaches how to create knowledge, not just repeat it.”

Fourth, restructure the economy to promote green, circular growth, driven by science, technology, and innovation, and enhance national competitiveness.

Finally, develop the private economy and national enterprises as the leading force for growth and global integration. Vietnamese businesses should become pioneers in the global economy.

Lam affirmed that achievements and challenges alike confirm a core truth: “Reform is an endogenous necessity, the law of survival and development. Reform for the people, by the people, and serving the people is the essence; reform based on science, justice, and practice is the principle; reform to preserve independence, sovereignty, sustainable and strong development is the goal. Success must be measured not only by growth or poverty reduction, but also by macroeconomic governance capacity and the economy’s resilience to global shocks.”

According to the World Bank’s 2012 Vietnam Development Report: “In 1986, Vietnam began a self-directed political and economic transformation, transitioning from a centrally planned economy to a socialist-oriented market economy. Between 1990 and 2010, Vietnam’s economy grew at an average of 7.3% annually. The country’s transformation - from extreme poverty to a lower middle-income economy in under 20 years - became a textbook case in development economics.”

Tien Phong