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Key Highlights from 2024: Achievements and Challenges

In 2024, Vietnam saw significant improvements in social welfare and living standards for its citizens. The multidimensional poverty rate fell to about 1.9%, while the average income of workers increased by approximately 7.4%. Vietnam’s happiness index moved up 11 places to rank 54th out of 143 nations, and the Sustainable Development Goals (SDG) index climbed to 54th among 166 countries, advancing one position from 2023. The nation also demonstrated remarkable solidarity in response to the devastation caused by Typhoon No. 3, showcasing empathy and support for those affected.

The drive for administrative reforms and anti-corruption measures gained traction. Efforts included simplifying procedures, strengthening decentralization, and effectively restructuring government agencies. Enhanced mechanisms for oversight and complaint resolution were implemented, leading to more decisive action against corruption and unethical practices, which in turn fostered socio-economic growth and increased trust from the public.

Vietnam maintained its national independence and sovereignty, significantly boosting its defense and security capabilities. The country advanced its diplomatic efforts and international integration, improving its global standing. Initiatives to establish comprehensive defense and security measures were fortified, with positive outcomes in the defense sector. Political stability and public safety were reinforced, and efforts to expand international cooperation through economic diplomacy created a conducive environment for peace, stability, and development.

Despite achievements in 2024, it is crucial to address ongoing limitations and challenges that need immediate and effective solutions. The macroeconomic landscape remains fragile, with risks related to exchange and interest rates, as well as inflation, exacerbated by external pressures. Various sectors still struggle, and the recovery of market demand is slow. There are persistent challenges in executing certain infrastructure projects, and public investment disbursement is below expectations.

A persistent bottleneck exists in the institutional and legal framework, characterized by a regulatory approach that often hinders development rather than supports it. Existing laws and policies require updates to better align with practical needs, and issues around decentralization remain. Overburdensome administrative procedures in certain sectors continue to obstruct progress, and inefficiencies in various areas lead to wasted resources and missed developmental opportunities.

Training and development of high-quality human resources have not kept pace with the demands of modernization, limiting productivity and economic competitiveness. Regional disparities and social inequality remain notable challenges, with some communities struggling to improve their living conditions.

Efforts to combat environmental pollution, traffic issues, and urban flooding in major cities have lagged. The unpredictability of climate change, along with natural disasters like typhoons, has attracted significant concerns. Additionally, the rise of high-tech crime and challenges in maintaining security in certain areas has complicated management efforts.

These challenges arise from both external and internal factors. On the outside, the global climate has been tumultuous, bringing various difficulties. The residual impacts of the COVID-19 pandemic still affect various sectors, compounded by disasters like Typhoon No. 3 (Yagi).

Internally, some areas have witnessed lapses in discipline and enforcement. Challenges with decentralization and authority delegation remain unsolved, and a portion of officials may evade accountability, leading to ineffective policy responses.

From the analysis of various sectors, several vital lessons have emerged to refine governance in the future. Unity among the nation, under the leadership of the Party, proves crucial for sustainable development and serves as a cornerstone for overcoming adversity. A national spirit of self-reliance and prioritizing collective interests is essential.

Future development must be based on forward-thinking strategies and a capacity to adapt to changing challenges. Actions must be decided upon swiftly and executed thoroughly, emphasizing time, intellect, and creativity. The effective implementation of policies requires adaptability and innovation to meet emerging needs.

Utilizing both internal and external resources effectively remains a priority, with a focus on fostering the core capabilities of the Vietnamese people for long-term growth. Improving social welfare and ensuring the well-being of citizens must take precedence. All development efforts should prioritize fairness and environmental sustainability, guided by the principle of inclusiveness.

Strengthening governance and decentralization, linked with effective resource management, is essential. Ongoing vigilance against corruption and inefficiency is critical to build and maintain public trust, paving the way for further advancement.

Looking ahead, the global and regional landscape is anticipated to continue being complex and unpredictable. The economic recovery remains sluggish, with rising risks and increasing fragmentation.

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Challenges and Opportunities for Vietnam’s Growth

In Vietnam, while there are positive indicators such as ongoing economic recovery and beneficial new policies, the country still grapples with substantial challenges. These difficulties stem from external pressures and persistent internal shortcomings.

Issues such as non-traditional security threats, climate change, natural disasters, and an aging populace are increasingly impactful. Vietnam’s status as a developing nation with an evolving economy means its economic size is still limited, and its openness makes it vulnerable to global disruptions, along with relatively weak resilience and competitiveness.

Such circumstances highlight the importance of proactive and adaptable strategies to address challenges and seize opportunities that support sustainable development.

The year 2025 is notably pivotal, marking milestones like the 95th anniversary of the founding of the Communist Party, the 50th anniversary of reunification, and the 135th birthday of President Ho Chi Minh. The events planned for this time signal a transformative period towards progress, strength, and prosperity, as envisioned by General Secretary To Lam.

To meet the ambitious targets outlined in the 2021-2025 Socio-Economic Development Plan, Vietnam must ramp up efforts from 2025 onward, aiming for breakthrough investments and a minimum growth rate of 8%. This approach is essential for laying the groundwork for sustained growth rates beyond 2026, promoting inclusive and sustainable development.

In times of significant change, bold decisions are necessary. The objectives related to the centennial celebrations of both the Party and the State present a formidable yet honorable challenge, serving as a bounding link from the past to the future. Success will enable Vietnam to escape the middle-income trap and progress towards developed status.

These aspirations can be fulfilled through innovative thinking, strong determination, dedicated efforts, decisive actions, and effective implementation. It’s crucial to harness the country’s unique advantages and opportunities while cultivating a culture of unity, cooperation, and commitment to the nation’s welfare, embracing the spirit of “daring to think, act, and innovate for the greater good.”

Promises must be actionable, following the principle of “what is stated must be executed; commitments must be honored.” The guiding philosophy is: “the Party leads, the Government unites, the National Assembly supports, and the populace endorses,” focusing on proactive measures rather than retreat.

The Resolutions from the 13th Party Congress and directives from various governmental entities clarify necessary actions across all sectors, emphasizing comprehensive and synchronized implementation with clear accountability and results.

Key priorities for achieving tangible, measurable results include:

1. Improving the institutional framework: Establish strong foundations for national development based on open policies, integrated infrastructure, and smart governance. A focus will be on fostering innovation and modernizing key sectors, while enhancing the real estate and stock markets’ functionality.
2. Promoting economic growth: Focus on sustaining macroeconomic stability, controlling inflation, and maintaining economic balance. Measures will enhance forecasting capabilities, allowing for more proactive economic management while effectively mobilizing national resources.
3. Developing strategic infrastructure: Fast-tracking key projects and ensuring connectivity between transportation networks. The target is to complete significant road projects by the end of 2025.
4. Driving industrialization and modernization: Transform the economic structure by integrating scientific innovation into growth models to reshape the nation’s economy for future challenges.

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Enhancing Economic Growth and Development

The strategy focuses on improving productivity, quality, efficiency, and competitiveness across key sectors such as agriculture, industry, and services. This encompasses leveraging existing potential, employing advanced technologies, and shifting towards environmentally friendly and efficient practices. By minimizing logistics costs and tapping into various forms of tourism, the aim is to stimulate growth.

State-owned enterprises will undergo efficiency improvements, while policies will support private sector growth. By attracting selective foreign investments, the goal is to deepen integration into regional and global value chains, promoting a sustainable and innovation-led economic framework.

Pursuing Human Resource Development and Innovation

To prioritize high-quality human resources, science and technology, innovation, and digital transformation, clear policies and mechanisms must be put in place. These actions will align with Resolution No. 57-NQ/TW and aim for substantial breakthroughs to propel Vietnam into a phase of rapid, sustainable development characterized by a catch-up and surpass approach.

A thorough policy review will target improvements in education quality and labor productivity, alongside advancing the national digital transformation agenda. This includes fostering an innovation ecosystem that inspires the business community, and mobilizing the young population of Vietnam to play a leading role in achieving the country’s aspirations.

Cultural and Social Advancement

Cultural development will be harmonized with economic and social growth, promoting cultural industries and the entertainment sector while establishing a strong value system for the Vietnamese community. Ongoing support will be given to those who have contributed to the nation and to social welfare programs aimed at poverty reduction and ensuring social security.

Targeted programs for rural development, socio-economic enhancement in minority regions, and cultural promotion will be effectively executed. The initiative to eliminate temporary housing by 2025 aims to create over 100,000 social housing units, improving living conditions and promoting social equity.

Strengthening Governance and Combatting Corruption

Efforts to fight corruption and improve governance will be intensified, focusing on enhancing institutional frameworks and ensuring transparency. Rigorous inspections will be conducted to uphold integrity and public trust while holding accountable those in authority.

Defending National Interests

National defense and security strengthening will remain a priority to safeguard the nation’s sovereignty. The development of dual-use defense industries will be accelerated, alongside measures to reduce crime and improve safety and security, ensuring a stable environment conducive to development and well-being.

Enhancing International Relations

Strengthening foreign affairs and international integration will be pivotal, deepening partnerships for effective and beneficial collaboration. Enhanced strategic capabilities will help Vietnam proactively address challenges and protect national interests.

Economic and cultural diplomacy efforts will be prioritized, along with promoting exchanges to elevate Vietnam’s standing globally and foster international cooperation for national development.

Improving Communication Efforts

Communication efforts will be intensified, focusing on policy awareness and promoting successful innovative practices. Collaborative approaches involving the Vietnam Fatherland Front and community organizations will help foster social consensus and bolster national solidarity, contributing to socio-economic development goals.

Looking Ahead to 2025

The forthcoming tasks for 2025 and beyond are formidable. However, drawing from nearly four decades of progress since the Đổi mới reforms and the unwavering spirit of unity and resilience, the nation is poised to overcome challenges under the leadership of the Communist Party of Vietnam.

Vietnam’s enduring intelligence and strength, cultivated through a rich history, will guide the country to new heights and significant achievements in this era of growth and prosperity, realizing the vision of our revered President Ho Chi Minh for Vietnam to stand among global powers.

Member of the Politburo, Prime Minister

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