Five new institutional pillars are gradually redefining the structure and trajectory of Vietnam’s economy in the lead-up to the 14th National Party Congress. These reforms are not mere political slogans - they are anchored in formal resolutions, legal restructuring, and tangible changes in state operations.

At the heart of this institutional transformation is a “core quartet” of recently issued resolutions by the General Secretary and the Politburo. These include Resolution 57 on science, technology, and innovation; Resolution 59 on proactive, comprehensive international integration; Resolution 66 on comprehensive legal reform and enforcement; and Resolution 68 on private sector development. Complementing these are two cross-cutting institutional layers: digital and green transformation, and large-scale administrative reform. Together, they form the five foundational pillars for Vietnam’s development from 2025 to 2030.

1. Institutions for science, technology, and innovation

Resolution 57 positions science, technology, and innovation as one of the primary drivers of rapid and sustainable growth. It calls for reforms to intellectual property protection, R&D tax incentives, and mechanisms encouraging enterprise-led innovation.

In the first nine months of 2025, medium- to high-tech manufacturing - particularly electronics, electrical equipment, automotive, and pharmaceuticals - was the key contributor to Vietnam’s 7.85% GDP growth, with multiple R&D hubs established across these industries.

While R&D spending remains modest at 0.53% of GDP, it has grown over 10% annually, with businesses now accounting for more than 60% of total R&D expenditure - an early sign that the institutional push for private sector-led innovation is gaining traction.

This shift marks a fundamental turn away from past growth models reliant on cheap labor and resource extraction. The new institutional framework demands a departure from outdated licensing practices, embracing output-based public-private funding and venture capital participation in innovation ecosystems. If implemented effectively, this pillar could raise total factor productivity (TFP) growth to 4–5% annually - a prerequisite for achieving double-digit GDP growth from 2026 to 2030.

2. Institutions for international integration in a new context

Resolution 59 targets a strategic upgrade in Vietnam’s global role - from participating in international agreements to helping shape regional and global rules.

Over the past decade, Vietnam has signed 17 free trade agreements (FTAs), including CPTPP, EVFTA, and RCEP. The country’s total trade volume in 2025 is projected to exceed USD 900 billion, with a trade-to-GDP ratio over 200% - among the world’s highest.

In the first half of 2025, Vietnam posted 7.52% GDP growth - the highest in 15 years - driven primarily by export-oriented manufacturing and a new wave of FDI targeting global supply chains.

Next-generation integration institutions go beyond signing FTAs. They focus on domestic legal harmonization with international standards - on issues like labor, environment, cross-border data, and fair competition - and capitalizing on frameworks like CBAM and global minimum tax rules to reform domestic policies.

This requires deep reform in service markets, logistics, and finance, along with improved corporate governance and transparency - key to turning Vietnam’s integration advantage into an institutional edge, as recommended by the OECD’s 2025 Economic Survey.

3. Institutions for lawmaking and law enforcement

Resolution 66, described by the General Secretary as Vietnam’s “second institutional revolution,” aims to overhaul the legislative process, policy implementation, and legal oversight.

Its goal is to build a unified, transparent, and predictable legal system that robustly protects property rights and economic freedoms, while ending the proliferation of overlapping and ineffective regulations.

Between late 2024 and mid-2025, four major institutional resolutions and over 20 laws - covering land, investment, bidding, and real estate - were revised, providing clearer legal frameworks for capital markets, land use, and public-private partnerships (PPP).

The shift from pre-approval to post-audit governance, with digital tools for inspections, has significantly reduced compliance costs and opportunities for corruption. According to the Vietnam Chamber of Commerce and Industry (VCCI), informal costs fell by about 30% over five years, and complaints about overlapping inspections dropped by more than 15 percentage points.

These changes have strengthened investor confidence in Vietnam’s legal system, encouraging long-term investment instead of short-term speculation or capital flight.

4. Institutions to foster a dynamic private sector

Resolution 68 marks what many consider Vietnam’s second Doi Moi (renovation) in recognizing the private sector as a true driver of economic growth.

It mandates equal treatment for all businesses - whether state-owned, private, or foreign-invested - while expanding access to land, credit, markets, and technology. It also affirms the protection of property rights and promotes fair, transparent competition.

Currently, private enterprises account for 42–45% of GDP, 85% of the labor force, and 98% of registered companies. In 2025, the number of newly established and reactivated businesses continued to rise, with private firms increasingly venturing into high-tech, renewable energy, and high-value service sectors.

Nonetheless, barriers remain in access to long-term capital, supply chain integration, and innovation capacity. Resolution 68 calls for the development of transparent capital markets, corporate bonds, and venture capital, as well as a national supplier development program to help Vietnamese companies become tier-1 or tier-2 partners to global corporations.

5. Institutions for digital, green, and administrative transformation

In addition to the four core resolutions, two cross-cutting institutional reforms are reshaping the relationship between state and market: digital and green transformation, and large-scale administrative reform.

Vietnam’s national digital economy strategy sets targets of 20.5% of GDP by 2025 and 30% by 2030, while the country’s net-zero carbon commitment by 2050 has triggered a suite of strategies around green growth, circular economy, and Power Development Plan VIII.

As of mid-2025, the digital economy was estimated to contribute about 20% of GDP. Many major enterprises have adopted dual digital-green models, embraced ESG standards, and begun participating in carbon credit and green bond markets.

Meanwhile, the 2025 administrative reform drive is considered Vietnam’s most sweeping in decades. It includes merging administrative units, streamlining central and local agencies, and digitizing tens of thousands of procedures.

The government is moving toward a two-tier system - empowering urban and rural administrations - while expanding one-stop digital service centers. This approach reduces both fiscal costs and transaction burdens for businesses, and accelerates policy execution and decision-making.

A new institutional infrastructure for a new development era

Together, the five institutional pillars - innovation-led growth, next-generation global integration, modern legal systems, a dynamic private sector, and twin transitions in digital and green governance - form the “soft infrastructure” for Vietnam’s next development phase.

If implemented consistently through the end of the 14th National Party Congress, this framework could enable Vietnam not only to sustain high growth, but also to enhance development quality - moving closer to its goal of becoming a high-income, developed nation by the mid-21st century.

Dr. Nguyen Van Loc - Dr. Pham Ngoc Huong Quynh (University of Economics, Vietnam National University, Hanoi)