Vietnam at 80 - Rising as one of Southeast Asia’s economic powerhouses

Vietnam has solidified its position as one of Southeast Asia’s fastest-growing economies after eight decades of national development, according Emeritus Professor Carl Thayer from Australia's University of New South Wales.

In a recent interview with Vietnam News Agency in Sydney on the threshold of the 80th National Day (September 2), Thayer, a renowned Vietnam specialist, highlighted the country’s robust economic growth since “Doi moi” (renewal).

Although the Covid-19 pandemic posed formidable challenges, the economy rebounded quickly, posting GDP growth of 5.3% in 2023 before accelerating to nearly 7.1% in 2024. This year, the Vietnamese Government eyes 8% in economic expansion, with expectations to move towards double-digit growth in subsequent years.

The professor said Vietnam could deliver on its goals if it pays greater attention to leveraging foreign investment and export activities – two of the economy’s key growth drivers.

The country has achieved remarkable success in shifting to an export-oriented economy, with strong performance witnessed in textiles and mobile phones. However, as other nations pursue similar strategies, Vietnam has taken further steps to strengthen its competitiveness, including advancing value chain, promoting technological renewal, and cooperating with foreign firms in human resources training.

As avoiding the middle-income trap remains a strategic priority, Vietnam is focusing on improving competitiveness, diversifying its economy, developing high-quality human resources, fostering innovation, and protecting the environment.

The ultimate goal is to move from a low-cost and labor-driven economy towards higher value-added industries and modern technologies. The professor observed that Vietnam has been well-prepared for this transition.

Regarding the adoption of the two-tier local government model (provincial and ward/commune levels only, with the district level removed) since July 1, Thayer described this as a historic strategic move, helping the country capitalize on its resources in a more effective and faster manner to concretize its set targets.

As an active and responsible member of ASEAN, Vietnam, with its increasingly abundant resources, also has the potential to accelerate growth across the bloc and confidently assumes ASEAN leadership roles, Thayer added.

Looking ahead, he advised that while Vietnam has witnessed rosy economic growth, the country should remain vigilant against global economic and trade uncertainties, given its deep integration with the global economy.

Over the past 80 years, Vietnam has undertaken extensive economic reforms, including domestic market improvements, enhanced savings rates, consumption promotion, and export market expansion. However, long-term success requires further market diversification, coupled with flexibility in response to unexpected and rapid global policy shifts, he added.