Technology, innovation, digital transformation will drive Vietnam to high-income, developed-economy status by 2045: PM

Science-technology, innovation, and digital transformation will be key drivers for Vietnam to become a developed, high-income economy by 2045, Prime Minister Pham Minh Chinh said at a policy dialogue with World Economic Forum (WEF) managing director Stephan Mergenthaler.

He noted that Vietnam’s development path has so far moved from agriculture lifting the country out of poverty to industry helping it approach the upper-middle-income threshold.

“We identify science-technology and innovation as the factors that will help Vietnam become a developed, high-income country by 2045,” the Prime Minister said, acknowledging the goal was challenging but necessary to improve people’s well-being.

The policy dialogue took place within the Autumn Economic Forum in Ho Chi Minh City on Wednesday.

Responding to questions on global risks such as geopolitical tensions, supply-chain disruptions, and climate change, Chinh said non-traditional security threats - from natural disasters to ageing populations, resource depletion, cybersecurity risks, the development of AI that threatens jobs, and strategic competition - are narrowing development space.

“The world faces significant risks, but we are not pessimistic. We see opportunities,” he added.

The Prime Minister pointed out that the world is polarized and fragmented, but peaceful cooperation and development are still the main trends. At the same time, science-technology, innovation, and digital and green transformation are the common driving forces of the world economy, contributing to limiting the global challenges.

He noted Vietnam has maintained growth, reduced public debt from 56% of GDP to 36% this year, and strengthened its global standing through political stability and consistent foreign policy.

Vietnam’s GDP grew 7.85% in the first nine months of the year and 8.23% in Q3, according to official data. The figures were the second-highest levels in 11 years, except for 2023 which saw a strong surge post the pandemic. The government set the country's economic expansion target at 8.3-8.5% for 2025.

The cabinet leader described green and digital transitions as Vietnam’s top strategic priorities, calling them “two parallel pillars of a dual transformation”. The government, he noted, would focus on reforms in institutions, infrastructure, and human resources, while expanding renewable energy, digital databases, and smart governance.

Chinh emphasized support for SMEs, which account for up to 97% of Vietnamese businesses, as well as start-ups and young workers. Policies should give them “space for creativity”, paired with risk-sharing mechanisms. “In innovation, risks must be accepted, and policies must protect them,” he said.

On ASEAN, Chinh said the bloc remained dynamic and central to regional growth, guided by unity, cooperation, and shared development goals. Science-technology and innovation, green transition, and digital transformation would be key pillars for the region, he added.

The prime minister also highlighted the importance of dialogue in an increasingly polarized global environment. “All conflicts must be resolved peacefully through dialogue,” he said, adding Vietnam stood ready to work with WEF to promote dialogue in conflict areas to foster peace and development.