Vietnam Achieves Remarkable Economic Milestones Since National Reunification
Hanoi, The Gulf Observer: Since the historic national reunification on April 30, 1975, Vietnam has traversed a remarkable path of economic transformation, evolving from a war-torn agrarian economy heavily reliant on foreign assistance to a dynamic player on the global stage, poised to ascend as the 20th largest economy in the world.
In the aftermath of reunification, Vietnam faced daunting challenges, grappling with the aftermath of two major wars and an economy hinged on agriculture and external aid, with over 63 percent of its budget sourced from foreign loans and assistance.
During the period spanning 1976 to 1980, Vietnam encountered economic stagnation, with nominal GDP growth averaging a mere 1.4 percent and even contracting by 1 percent in 1980. The nation’s resilience was tested further by a cessation of support from external sources, exacerbated by conflicts along its northern and southern borders in 1979.
In response to mounting challenges, Vietnam initiated pivotal reforms in 1979, heralding a paradigm shift in economic policies. The introduction of Resolution No. 20-NQ/TW in September 1979 marked a watershed moment, advocating for a hybrid approach integrating planning mechanisms with market principles, and revitalizing the private sector under state oversight.
The subsequent adoption of Piecework Directive 100 in January 1981 catalyzed agricultural productivity, laying the foundation for Vietnam’s economic resurgence. The nation witnessed a surge in food production, industrial output, and a notable reduction in trade deficits from 1981 onwards.
The transformative reforms gained momentum in December 1986 with the issuance of a historic reform policy during the 6th National Party Congress, charting a course towards a market-oriented economy with socialist underpinnings. This pivotal shift propelled Vietnam’s GDP to an annual average growth rate of 6.51 percent during 1986-2000, accompanied by a structural transformation towards industrialization and modernization.
Since 2001, Vietnam has emerged as a beacon of economic progress, recording robust growth rates and integrating seamlessly into the global economy. The nation’s GDP surged 12.5-fold from 2001 to 2009, with an average annual growth rate of 7.26 percent during 2001-2010. Vietnam’s ascent from a low-income to a lower-middle-income nation underscores its remarkable trajectory of development.
By 2019, Vietnam solidified its position as a regional economic powerhouse, ranking eighth worldwide in GDP growth and establishing itself as the 22nd largest exporter globally. The nation’s GDP surpassed VNĐ10.221 quadrillion (US$430 billion) in 2023, cementing its status as an economic force to be reckoned with.
Looking ahead, Vietnam’s economic trajectory remains promising, with forecasts projecting its GDP based on purchasing power parity (PPP) to reach $1.833 trillion by 2026, securing the second position in Southeast Asia and attaining the 20th global rank by 2029. As Vietnam continues its pursuit of economic excellence, the nation stands poised to realize its full potential as a dynamic and thriving economy on the global stage.
