Vietnam announced in late 2024 a wide-ranging economic reform plan to reach high-income status by 2045 and join the ranks of Asia’s so-called “tiger economies.” The program aims to address challenges such as slowing export growth, climate risks, an aging population, and the need for stronger institutions. Official data showed that the country’s average annual income has risen more than thirteenfold since 1990, supported by rapid industrialization and export-led development. Authorities intend to move beyond dependence on low-cost manufacturing by investing in advanced sectors like computer chips, artificial intelligence, and renewable energy. Major infrastructure projects include a $67 billion high-speed railway between Hanoi and Ho Chi Minh City and the creation of two financial centers to attract foreign investors. The government also passed a resolution recognizing private businesses as the main driver of future growth.

The plan includes formidable structural reforms, such as merging ministries, reducing bureaucratic layers, and consolidating provinces to improve efficiency. Private companies will be given better access to loans, priority in government contracts, and support for overseas expansion. Economists warned that the country must avoid the “middle-income trap,” which could limit economic progress without substantive innovation. Climate change remains a formidable obstacle, with the World Bank warning of possible GDP losses of up to 14.5% annually by 2050 without decisive action. Industrial zones have started improving flood resilience after recent typhoon damage caused significant economic losses. Demographic shifts are also a concern, as the working-age population is expected to peak by 2042. Policies to promote healthy aging, extend retirement age, and increase female participation in the workforce are seen as indispensable for maintaining productivity. Experts believe the success of these reforms will depend on astute leadership and the ability to balance rapid growth with environmental and social equilibrium.