Vietnam's economy:

Starting from a low point, facing difficult and unfavorable conditions, after 50 years since the liberation of the South and the reunification of the country, Vietnam has grown significantly stronger, possessing a substantial foundation, potential, position, and international prestige. In particular, the Vietnamese economy is poised for a breakthrough in this era of national development.

Overcoming difficulties

Loading and unloading export goods at Hai Phong Port.

Fifty years ago, the reunification of the country brought immeasurable joy, but also extremely difficult socio-economic conditions.

The North's economy was weak and backward after decades of devastation, while all its resources were focused on supporting the war effort in the South. Meanwhile, the South's economy depended on foreign aid, with only a few small factories and production facilities, mainly involved in processing food, agricultural products, and consumer goods. At that time, the economy was very small, crippled, and fragmented, with low labor productivity, lacking vitality and many of the necessary resources for development. Furthermore, shortly after liberation, Vietnam faced a prolonged embargo by the United States and Western countries, pushing it into a very difficult situation, lacking opportunities for development, and causing the lives of the vast majority of the population to be impoverished and deprived.

But that was also the root cause of the Party and State's determination to overcome weaknesses and find a path to development as an inherent and inevitable need. 1986-1990 was the initial stage of the reform process. With the policy of developing a multi-sector commodity economy operating under a socialist-oriented market mechanism, the economy gradually overcame its weaknesses and made significant progress.

Following the period of 1986-1990, the reform process achieved very important initial successes: Gross Domestic Product (GDP) increased by 4.4% per year; total agricultural production increased by an average of 3.8-4% per year; industry increased by an average of 7.4% per year, of which consumer goods production increased by 13-14% per year; and export value increased by 28% per year.

The successful implementation of three targeted development programs on food, consumer goods, and exports has contributed to economic recovery and inflation control… This is an initial success, a fundamental transitional phase from the old management mechanism to the new one, a step in the process of reforming socio-economic life, and a preliminary liberation of productive forces, creating new impetus for development.

This also served as an important foundation for the country to enter the 1991-1995 period, with significant achievements, relatively high, continuous, and comprehensive growth rates. Average GDP growth was 8.2% per year; industrial production value increased by 13.3% per year; agriculture by 4.5% per year; the service sector by 12% per year; and total food production over the five years reached 125.4 million tons, a 27% increase compared to the 1986-1990 period. The country emerged from a serious and prolonged crisis, although some aspects remained unstable, but it created the necessary foundation for transitioning to a new period of development.

The period from 1996 to 2000 marked a significant development in the new economic era, accelerating the industrialization and modernization of the country. The average GDP growth rate for this period was 7% per year; if we include the period from 1991 to 2000, the average GDP growth rate was 7.5% per year. Compared to 1990, GDP in 2000 more than doubled. This can be considered a breakthrough and a very positive achievement.

The period from 2001 to 2005 witnessed a deepening of the reform process. GDP increased by an average of 7.5% per year, reaching 8.4% in 2005 alone. The size of the economy's gross domestic product in 2005 reached 837.8 trillion VND, double that of 1995. From a country facing food shortages, Vietnam achieved a new milestone by becoming the world's leading rice exporter.

Maintaining macroeconomic stability has ensured political, social, national defense, and security stability, initially leveraging many advantages of the country, each region, and each sector. The reform of economic institutions, the gradual improvement of management mechanisms and policies, the operational system; the reform and enhancement of the efficiency of the financial and monetary systems; the development of human resources and labor quality, science and technology… have all yielded clear results.

In the following years, the economy maintained a relatively high growth rate, its potential and scale increased, and Vietnam emerged from underdevelopment, moving from a low-income country to a lower-middle-income country. GDP increased by an average of 7% per year. The size of the economy in 2010 reached US$101.6 billion, 3.26 times larger than in 2000.

Thus, over a 20-year period (1991-2011), Vietnam's GDP growth reached 7.34% per year, among the highest in Southeast Asia and the world. International public opinion highly appreciates Vietnam's achievements in poverty eradication and its experience, recognizing Vietnam as a valuable model for learning and reference…

According to the United Nations Development Programme (UNDP), Vietnam is a country with a high level of human development. Vietnam's Human Development Index (HDI) has continuously improved. From 1990 to 2022, the index value changed from 0.492 to 0.726, ranking 107th out of 193 countries and territories.

Accelerate towards wealth and prosperity.

During the period 2020-2025, the economy overcame many difficulties, ensured macroeconomic stability, maintained a relatively strong growth momentum, and made impressive structural shifts towards modernization, in line with the progress of the Fourth Industrial Revolution. The size of the economy in 2025 is projected to reach approximately US$500 billion, ranking 32nd in the world; per capita income is expected to reach approximately US$4,650 per year, surpassing the lower-middle income level.

The government has identified the need to accelerate industrialization and modernization, restructure the economy, and innovate the economic growth model towards green growth, digital transformation, and sustainable development. The proportion of the industrial, construction, and service sectors will increase, reaching 80.5% of GDP by 2025. Production and service sectors are beginning to be restructured towards digitalization, greening, diversification, and upgrading value chains based on science, technology, innovation, and creativity.

Several large-scale industries capable of competing in the international market have been established, gradually building the self-reliance of the economy. Some key industries and sectors requiring advanced technology and expertise have emerged, experiencing rapid growth and strong penetration into international markets, such as electronics and semiconductors, mechanical engineering, industrial equipment, and automobiles, which have been well-received by international consumers.

In particular, the country's appearance has been changing very rapidly, especially in the last 10 years, mainly thanks to the emergence of a series of key transportation projects in road, maritime, and air transport. Urban infrastructure, especially in large cities, is being invested in, expanded, and improved in a modern and synchronized direction, with the highlight being elevated railway lines that allow for efficient and rapid service to the people.

Many important, large-scale transportation projects have been invested in and upgraded, ensuring connectivity between major economic centers, regions across the country, and international transportation. By the end of 2025, the country aims to have more than 3,000km of expressways. Never before has the transportation network received such strong and synchronized investment to become a driving force, unlocking resources and promoting economic growth as in this period.

Recently, the entire country commenced and inaugurated 80 key national projects and major constructions, with a total capital of 445,000 billion VND, on the occasion of the 50th anniversary of the Liberation of the South and National Reunification (April 30, 1975 - April 30, 2025). These projects promise a very strong and synchronized transformation of infrastructure, which is of particular importance to socio-economic development in the near future. Notable examples include the component projects of the North-South Expressway, Terminal 3 of Tan Son Nhat International Airport, while the Rach Mieu 2 Bridge, Long Thanh International Airport, and many other projects are rapidly nearing completion. In other words, the infrastructure system is truly the runway, propelling the country into the future.

Vietnam has also emerged as an attractive destination for foreign investment, boasting high competitiveness thanks to its advanced investment and business environment, stable political and social foundation, abundant workforce, and favorable geographical location for international trade. The world also highly appreciates Vietnam's export performance, with a consistent trade surplus over many years, becoming a symbol of economic strength. Vietnam is a bright spot in a world facing fierce competition, complex developments, and uncertainty…

Compared to the vastness of history, the past 50 years may not be long, but they encompass a series of days filled with determination to overcome difficulties and surpass ourselves in order to progress. The Vietnamese nation is moving towards prosperity, although many hardships and challenges lie ahead, but there is also joy and aspiration that we can be proud of, serving as a foundation for future generations. With unwavering faith, the entire nation continues the cause of renewal in this era of striving for development, towards the goal of a prosperous people, a strong nation, democracy, fairness, and civilization.

Source: https://hanoimoi.vn/kinh-te-viet-nam-san-ready-to-breakthrough-in-the-era-of-discovery-700945.html