Viet Nam is facing a crucial turning point, shifting its focus from scale to quality

The shifting of institutional gears

According to Professor Andreas Stoffers of FOM Essen University (Germany), a GDP growth rate of over 8% in 2025 is a remarkable achievement, but the core lies in policy coordination and an increasingly solid institutional foundation.

Having observed the Vietnamese economy for over two decades, Professor Andreas Stoffers observes that the current period represents a breakthrough in management thinking. Instead of fragmented initiatives,  Viet Nam is implementing a comprehensive reform program through the Politburo 's "four resolutions." These include Resolution No. 57-NQ/TW: Focusing on perfecting the socialist-oriented market economy institutions in the new era. This resolution emphasizes removing legal bottlenecks, creating an equal business environment for all economic sectors, and especially promoting the role of the private sector.

Resolution No. 59-NQ/TW: Provides strategic direction on improving the effectiveness of national governance and modernizing the administrative system. The focus of the resolution is the shift from a "management" mindset to a "creative" mindset, helping the state apparatus operate more flexibly in the face of global changes.

Resolution No. 66-NQ/TW: This is a key resolution on the development of science , technology, and innovation. Its content emphasizes the integration of core technologies and Artificial Intelligence (AI) into key manufacturing sectors to enhance national labor productivity and help  Viet Nam escape the middle-income trap.

Resolution No. 68-NQ/TW: Focusing on strategic infrastructure development and green transformation. This resolution identifies investment in digital infrastructure, clean energy infrastructure, and key economic corridors as priority tasks to create growth potential for the 2026-2030 period.

The seamless coordination of these resolutions creates a comprehensive policy package that enhances resilience and strengthens investor confidence. "This systemic approach helps international investors have greater confidence in the consistency of  Viet Nam's legal environment," Andreas Stoffers emphasized.

This shift allows the State to influence the economy through more modern channels instead of simply owning businesses. Andreas Stoffers emphasized that the State's role, in any case, should not be a replacement for the market. Instead, the political system should focus on building capacity to lead and pioneer in key areas.

Regarding this issue, economist Dr. Nguyen Tri Hieu assessed that defining the State's role through a "facilitating" mechanism is a sharp approach. In a volatile world, the State focuses on providing public goods and strategic infrastructure – areas that the market struggles to handle on its own due to long payback periods. Gradually withdrawing from purely competitive business sectors will free up space for the private sector to develop strongly.

Data from the General Statistics Office (Ministry of Finance) shows that macroeconomic stability is creating positive room for long-term growth. Closing out 2025, the Vietnamese economy recorded impressive indicators: GDP growth reached 8.02%, far exceeding initial forecasts. Notably, total state budget revenue in 2025 is estimated to increase by 29.7% compared to the previous year, with domestic revenue accounting for an overwhelming 86%, reflecting the solid internal strength of the economy. The budget balance for the whole year showed a surplus of over 248.6 trillion VND, creating important resources for public investment plans in the 2026-2030 period.

Furthermore, the average consumer price index (CPI) in 2025 is well controlled at 3.31%, ensuring social stability. The trade surplus reached a record high of US$20.1 billion, while foreign direct investment (FDI) disbursement peaked at US$27.62 billion – the highest level in the past five years.

These figures demonstrate the effectiveness of systematic institutional reforms. Transparency in the domestic market, accelerated simplification of administrative procedures, and decisive disbursement of public investment are crucial factors in realizing reform commitments. With this foundation,  Viet Nam is entering 2026 with a growth target of over 10%, driven by the digital economy projected to reach $39 billion and the strong transformation of the manufacturing sector towards increased added value.

Digital transformation and the innovation ecosystem

One of the strongest messages from the reform practices is the commitment to transparency. Andreas Stoffers points out that international investors have noted significant progress in simplifying administrative procedures. The principle of competition neutrality is enforced, ensuring that private businesses are not disadvantaged by advantages in access to credit or procedural privileges.

Mr. Hieu further analyzed that managing resources in the new spirit helps maintain fiscal discipline. Focusing capital on foundational projects such as energy infrastructure and core technologies will reduce risks for the private sector when participating in the downstream market.

In particular, the establishment of international financial centers in Ho Chi Minh City and Da Nang represents a significant institutional innovation, supporting modern financial tools such as artificial intelligence, fintech, and green finance.

Previously, Dr. Nguyen Dinh Cung, former Director of the Central Institute for Economic Management Research, also affirmed that economic reform must go hand in hand with market institutional reform. Vietnam is proactively perfecting its socialist-oriented market economy model with substantive steps.

When the State's role as the "conductor" is repositioned to create the foundation, all economic sectors will be able to amplify their strengths.

According to economic experts, the new mission of national governance is not to dominate the market, but to create a safe and transparent investment environment. This is the "impetus" for Vietnam to prepare for its long-term development goals until 2030, with a vision to 2045.

Source: VTV