ISLAMABAD – Beneath the red banners and gold bust of revolutionary leader Ho Chi Minh at Hanoi’s central party school, Communist Party chief To Lam last year declared the dawn of “a new era of development” — a vision that signals the most ambitious economic transformation Vietnam has undertaken in decades.
The goal is clear and confident: by 2045, Vietnam aims to achieve high-income status and stand proudly alongside Asia’s celebrated “tiger economies” such as South Korea and Taiwan.
From humble beginnings, the nation’s rise has been remarkable. In 1990, the average Vietnamese could purchase just $1,200 worth of goods and services annually. Today, that figure exceeds $16,000, reflecting a dramatic improvement in living standards. Highways, high-rises, and a thriving middle class are visible proof of progress, and millions have been lifted from poverty.
From Export Star to Innovation Leader
Vietnam’s export success, particularly to the United States — now its largest market — has helped fuel this rise. Industrial zones that once replaced quiet villages are now bustling logistics hubs serving global brands. Even with the recent US tariffs, Vietnam has secured competitive terms and remains an attractive manufacturing destination for investors seeking a stable, dynamic hub in Asia.
The leadership recognizes that sustained prosperity means moving beyond the “low-cost workshop” model. Like South Korea with electronics and Taiwan with semiconductors, Vietnam is betting big on high-tech sectors such as computer chips, artificial intelligence, renewable energy, and advanced manufacturing. Strategic incentives, R&D support, and upgraded infrastructure — from a $67 billion high-speed rail line to civilian nuclear energy projects — are designed to secure long-term competitiveness.
Private Sector at the Heart of Growth
A historic policy shift is underway. Resolution 68, passed in May, designates private enterprises as the “most important force” in Vietnam’s economic strategy. This paves the way for easier access to financing, priority in government contracts, and expanded opportunities for domestic firms to compete globally.
The aim is to foster “national champions” — innovative companies capable of leading in global markets — while still welcoming foreign investment. Even mega-projects once reserved for state-owned enterprises, like the North–South High-Speed Rail, will now be open to private bidding.
Future-Ready Reforms
The government is also streamlining bureaucracy, merging ministries, and consolidating provinces to create stronger regional hubs. Plans are in motion to establish international financial centers in Ho Chi Minh City and Danang, attracting investors with modern regulations, fintech-friendly policies, and robust dispute resolution mechanisms.
Rising to the Climate Challenge
Vietnam is tackling climate change head-on, viewing resilience as both a necessity and a competitive advantage. Industrial parks are being redesigned for flood resistance, renewable energy is expanding rapidly, and adaptation measures are becoming part of business strategy. According to the World Bank, decisive action could protect the equivalent of 12–14.5% of GDP annually by mid-century and safeguard millions from poverty.
Demographic Strength and Social Innovation
While the nation faces an aging population in the coming decades, proactive measures — such as raising the retirement age, expanding preventive healthcare, and bringing more women into the formal workforce — are set to maintain productivity and ensure “healthy aging.”
A Confident Vision for 2045
Vietnam’s message to the world is one of determination: diversify, innovate, and lead. With strategic planning, dynamic private enterprise, and an unwavering commitment to reform, the country is positioning itself as a modern, competitive economy that can weather global challenges and seize 21st-century opportunities.
As To Lam’s declaration suggests, Vietnam is not simply entering a new era — it is shaping it.
BY: The Times Union
