Under Party General Secretary Nguyen Phu Trong’s leadership, Vietnam became the fastest-growing economy in Asia

Over the past decade, under the leadership of the Communist Party of Vietnam (CPV) Central Committee, with General Secretary Nguyen Phu Trong at the helm, the Party has demonstrated its leading role, resolutely and intelligently guiding the entire nation to achieve significant accomplishments in the economic renewal process.

Amid global economic upheavals and uncertainties, with profound changes, Vietnam’s economy is still regarded by the international community as having favorable growth prospects in the medium term, with strong foreign investment flows and an abundant workforce.

What are the foundations for such a bright outlook for the country’s socio-economic development?

Over the past decade, under the leadership of General Secretary Nguyen Phu Trong, with a strategic vision, the Party Central Committee has issued numerous resolutions on socio-economic development with breakthrough solutions, driving rapid and robust economic growth, as recognized by the international community.

Key highlights in Vietnam’s economic landscape from 2011 to present

During the ten-year implementation of the Socio-Economic Development Strategy 2011-2020 and more than three years of carrying out the Five-Year Socio-Economic Development Plan (2021-2025), Vietnam has faced numerous challenges, especially the rapid and complicated developments in the global political and economic landscape and the Covid-19 pandemic. Despite these obstacles, the country has achieved significant and comprehensive accomplishments across various fields.

Vietnam’s position and potential have grown considerably; the size, strength, and competitiveness of the economy have been much improved, and the autonomy of the economy has been enhanced. Macro-economic stability has been maintained and, furthermore, confidence from the business community and society has increased.

The quality of economic growth has gradually improved, and the economic structure has begun to shift more deeply. The utilization of input factors in the economy has become more effective, expanding economic openness and attracting a substantial amount of FDI inflows. The private sector’s contribution has grown and become an important entity driving the country’s economic development.

The first result from the implementation of the three strategic breakthroughs (institutions, infrastructure, and human resources), which has also constituted a highlight in the economy since 2011, has been evidenced by the increasing number of newly-established enterprises through five-year socio-economic development plans, with the number of new enterprises reaching higher and higher after each five-year period.

The capital registered for new businesses in 2020 rose by 163.5 per cent compared to 2015, reflecting the business community’s confidence in a more open and transparent business environment and better business prospects. The enterprise sector plays a crucial role in rapid and sustainable development and in global integration economically.

During the implementation of the three strategic breakthroughs, the government’s efforts in institutional reform, improving the investment and business environment, and upgrading infrastructure have turned Vietnam into an economy characterized by macro-economic stability, consistent development policies, and a comprehensive legal environment, thus strongly attracting foreign investment.

For instance, despite a 35 per cent global decline in FDI flows to $1 trillion in 2020, according to UN Trade and Development (UNCTAD), newly-registered FDI capital in Vietnam reached $16 billion in the same year, making the country a standout in attracting foreign investment and ranking it among the top 20 FDI-attracting countries globally for the first time.

Vietnam holds a leading position in the race for FDI against potential competitors in the region and the world. In 2023, total newly-registered FDI capital reached $20.19 billion, while disbursed capital stood at $23.18 billion, the highest in the past five years.

Such results from FDI attraction amid global investment declines, along with the arrival of leading technology corporations exploring opportunities and investing in Vietnam, demonstrate foreign investors’ confidence in Vietnam’s stable and promising business environment, creating new growth momentum for the Vietnamese economy.

A bright spot reflecting the overall results of the Party’s reform policies and the effectiveness of government management is the economic growth rate, which consistently ranks among the top performers globally.

Vietnam is considered a global success story, with its economic growth remaining at the top throughout the past decade. The Vietnamese economy has achieved significant and comprehensive milestones across most sectors, making a notable impact during the 2016-2020 period and highlighting the accomplishments of 35 years of “Doi Moi” (Renewal) with remarkable progress.

With its economic growth consistently at the forefront in the region and globally, Vietnam’s GDP per capita based on purchasing power parity (PPP) has surpassed that of some countries in the region.

Another bright spot in the economy from 2011 to the present is the success in controlling and managing inflation. Historically, during 2006-2010, inflation was in double digits every year. In 2011, the first year of implementing the 2011-2020 Socio-Economic Development Strategy, inflation was very high, at 18.13 per cent, but gradually declined to a single digit figure in subsequent years.

With experience in fighting inflation from 2011-2015, Vietnam recorded important results in inflation control during the 2016-2020 period, with inflation consistently remaining below the National Assembly’s annual target. It can be seen that the 2011-2015 period was successful in controlling inflation, while the following five years succeeded in managing inflation, laying a crucial foundation for maintaining macro-economic stability.

Especially in recent years, Vietnam has become a member of many significant multilateral and bilateral trade agreements, providing a strong legal foundation for Vietnam to deeply and widely integrate into the global economy and participate in global value chains. This has created a powerful motivation and effective means for successfully implementing our country’s export-based growth strategy. This is an important factor that elevates Vietnam’s position and attractiveness in the business strategies of foreign investors.

The results and achievements attained over the past decade have many causes, both objective and subjective. However, the most important factor is the correct leadership and direction of the Party Central Committee, the Politburo, the Secretariat, and the whole political system in implementing the Resolutions of the 11th, 12th, and 13th National Party Congresses, successfully addressing many new issues arising in practice in a timely and effective manner.

The Party’s effective economic leadership over the past decade was clearly reflected in the platforms, strategies, and official documents of the 11th, 12th, and 13th National Party Congresses, as well as numerous other important decisions issued by the Central Committee, the Politburo, and the Secretariat, headed by General Secretary Nguyen Phu Trong.

For instance, to build and develop an independent and self-reliant economy, on December 9, 2011, during his first term as the top leader of the Party, General Secretary Nguyen Phu Trong, on behalf of the Politburo, signed Resolution No. 09-NQ/TW of the 11th Politburo on building and promoting the role of Vietnamese entrepreneurs in the period of accelerating industrialization, modernization, and international integration.

The 5th Plenum of the 12th Central Committee issued Resolution No. 10-NQ/TW on June 3, 2017, on developing the private economy into an important driving force of the socialist-oriented market economy. This resolution is considered a breakthrough in thinking, creating a basis for the healthy and effective development of the private economy, making it a truly important entity of the economy.

Subsequently, the Politburo issued Resolution No. 23-NQ/TW on March 22, 2018, on the orientation for building national industrial development policies by 2030, with a vision to 2045.

On August 20, 2019, General Secretary Nguyen Phu Trong, on behalf of the Politburo, signed and issued Resolution No. 50-NQ/TW on the orientation for improving institutions and policies and enhancing the quality and effectiveness of foreign investment cooperation by 2030.

Resolution No. 50-NQ/TW reflects a strategic shift towards selecting FDI, focusing on quality, effectiveness, technology, and environmental protection as criteria for capital attraction.

The Party’s timely resolutions on economic development, which were appropriate for each critical period, have created momentum to promote deep economic growth based on innovation, improved workplace productivity, high-quality human resources, the application of scientific and technological advancements, and proactive international integration.

General Secretary Nguyen Phu Trong played a central role in Vietnam’s economic rise

As the head of the Party, General Secretary Nguyen Phu Trong frequently attended Government-to-localities conferences on economic development. At these conferences, General Secretary Nguyen Phu Trong provided orientations and assigned specific and important tasks to the Government, demonstrating his special attention to the country’s socio-economic development.

 

Quotes from international media

Financial Times:

As Party Chief since 2011 and the country’s State President between 2018 and 2021, Party General Secretary Nguyen Phu Trong played a central role in Vietnam’s economic rise. Vietnam has attracted billions of dollars in foreign investment from companies across the world, becoming an important link in the supply chain for companies such as Apple and Samsung.

Washington Post:

Party General Secretary Nguyen Phu Trong’s anti-corruption drive attempted to burnish public trust in the Communist Party of Vietnam and its stewardship of Vietnam’s economy, one of the most dynamic in the region, with sectors that include a growing startup culture.

New York Times:

Party General Secretary Nguyen Phu Trong oversaw one of Asia’s fastest-growing economies and raised Vietnam’s prestige on the international stage.