Vietnam announced in late 2024 a broad economic reform program aimed at achieving high-income status by 2045 and joining Asia’s “tiger economies.” The plan addresses problems such as slower export growth, climate risks, an aging population, and the need for stronger institutions. Official data showed that the average yearly income has increased more than thirteen times since 1990, supported by industrialization and export-led growth. Leaders aim to reduce reliance on low-cost manufacturing by investing in advanced areas such as computer chips, artificial intelligence, and renewable energy. Major 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 investment. The government also recognized private companies as the main driver of future growth.

The plan includes major reforms such as merging ministries, reducing bureaucracy, and joining provinces to improve efficiency. Support will be given through better access to credit, priority in state contracts, and help for overseas expansion. Economists warned about the “middle-income trap” and said that innovation is needed to keep progress. The World Bank warned of possible GDP losses of up to 14.5% yearly by 2050 without strong climate action. Industrial zones are improving flood protection after typhoon damage. Demographic issues remain, with the working-age population expected to peak by 2042. Policies to promote healthy aging, extend retirement age, and raise female participation are seen as essential for keeping growth steady.