Vietnam’s economic achievements surprise the world

“Legendary story”, “Rising star”, and “Asia’s brightest economy” count among the praise from international organisations in relation to Vietnam’s economic development over recent years.

Vietnam is said to be a global success story, with economic growth among the highest worldwide over the last decade.

It has enjoyed important and comprehensive economic achievements across fields, creating breakthroughs in the 2016-2020 period and highlighting the achievements during its 35 years of “Doi Moi” (renewal).

The achievements can be attributed to the sound leadership and direction of the Party Central Committee, the Politburo, and the Secretariat and Party Committees at all levels.

The Party’s leadership during this term has been clearly demonstrated through the principles, strategies, and official documents of the 12th National Party Congress as well as a series of other important decisions issued by the Party Central Committee and the Politburo.

Many important Party Resolutions were issued during the last tenure, with the two most outstanding relating to developing the private sector into an important driving force of the socialist-oriented market economy and to perfecting the socialist-oriented market economic institution.

The Politburo also issued three resolutions on building national industrial development policies to 2030 and a vision to 2045, on a number of guidelines and policies to actively participate in the fourth Industrial Revolution, and on the orientation of the National Energy Development Strategy to 2030 and a vision to 2045.

Among the Government’s priorities to implement the resolution of the 12th National Party Congress, improving the quality of the socialist-oriented market economy institution and promoting administrative procedure reform were placed at the top.

During its five years of implementing the resolution, Vietnam posted a range of achievements and breakthroughs.

The country’s economic restructuring and growth model transformation were conducted firmly, with more positive and practical changes made.

Vietnam basically completed and exceeded its set targets for four consecutive years, from 2016 to 2019, with results improving every year.

It has posted among the highest economic growth in the world and stable macro-economic factors, and promoted institutional reform. These are attributed to the joint efforts of the entire political system, business community, and people under the leadership of the Party.

Associate Prof., Dr. Dinh Trong Thinh said that although there were still some shortcomings, the last five years was a period of success for Vietnam’s economic development, with a strong change in the economic structure.

The private economy is gradually becoming a driving force in promoting national economic growth and now contributes 40% to the country’s GDP.

Digital transformation and the application of digital technology in the economy are developing strongly.

Beside its economic achievements, Vietnam also posted commendable results in socio-cultural development and ensuring social welfare. Living standards have been improving, with average per capita income now standing at US$2,750.

Vietnam has also recorded outstanding achievements in international integration over the last five years. It has signed 15 free trade agreements (FTAs) to date and negotiated two others. Strategic partnerships have been established with 16 countries, and comprehensive strategic partnerships with 11 others. It has joined over 500 bilateral and multilateral agreements across fields. Up to 71 countries have recognised Vietnam as a market economy.

International economic integration has helped Vietnam’s international trade activities thrive, according to Dr Nguyen Duc Kien, Head of the Prime Minister’s Economic Advisory Group.

From an importing country, Vietnam has worked to balance its imports and exports and now regularly posts a trade surplus, Kien said.

Joining FTAs with major economies has helped it diversify its external economic relations and build a more reasonable market structure not overly dependent on any particular market. This contributes to improving trust among foreign investors in Vietnam’s stability and economic potential.

According to the UN Development Programme (UNDP), Vietnam has created a “legendary story” in poverty reduction, with a human development index (HDI) of 0.63 in 2019, ranking it 118th out of 189 countries and among the group of countries with the highest HDI growth.

It was also ranked 8th on a list of the world’s best economies to invest in 2019, up 15 places compared to 2018, while its competitiveness was ranked 67th out of 141 countries and territories by the World Economic Forum, up 10 places compared to 2018.

According to the UN Sustainable Development Report 2020, Vietnam is the only Southeast Asian country to achieve five UN action targets.

Amid the “gloom” of the world economy in 2020 due to COVID-19, Vietnam emerged as a remarkable and proud bright spot.

Party General Secretary and State President Nguyen Phu Trong has stressed that “never before has our nation had the fortune, strength, position, and prestige it has today”.

These successes are not accidental, but the result of self-reliance, self-resiliency, flexible policy responses, and tireless efforts by the Vietnamese Party, Government and State, as well as the entire business community and the people.

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