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Vietnam is urged to continue innovating its growth model by focusing on high technology, supporting innovative startups, and transitioning to a green economy, according to experts. This push for innovation was highlighted during a recent meeting chaired by Prime Minister Pham Minh Chinh, who heads the sub-committee for socio-economic affairs of the 14th National Party Congress, scheduled for early 2026.
The meeting, which reviewed the progress of the 2021-2030 socio-economic development strategy, also discussed draft orientations for the 2026-2030 period, which will be submitted to the Politburo and the 10th session of the current 13th Party Central Committee.
Prime Minister Chinh emphasised that economic development remains the central priority for Vietnam as it navigates the complexities of the global economy. He underscored the need to revitalise traditional growth drivers while aggressively exploring new avenues of growth that align with the nation’s ongoing journey of innovation, integration, and development.
This vision was echoed in June at the World Economic Forum (WEF) in Dalian, China, where PM Chinh highlighted Vietnam’s commitment to growth through flexible policies tailored to the country’s unique conditions and global trends.
Experts at the meeting noted that Vietnam’s economy has shown remarkable resilience and growth, but they also stressed the importance of transitioning to a more sustainable and innovation-driven model.
Associate Prof. Bui Quang Tuan, former director of the Vietnam Economic Institute, pointed out that while Vietnam has been widely recognised for its strong economic performance, the current growth model remains overly reliant on capital and human resources, with the contribution of total factor productivity (TFP) and labour productivity gradually diminishing.
This year, Vietnam’s GDP grew by 6.42% compared to the same period in 2023, with year-end forecasts approaching 7%. This marks the fourth consecutive quarter of surpassing expectations, fueled by a diverse range of sectors, including agriculture, forestry, fisheries, services, industry and construction. Emerging contributors like the digital economy, TFP, labour productivity, and the green economy are also playing an increasingly significant role in driving GDP growth.
However, Tuan warned that this impressive growth is still anchored in an outdated model that relies heavily on investment and labour inputs rather than innovation and efficiency gains. He stressed that while investment remains a critical driver, the role of human capital is becoming more crucial, surpassing the impact of sheer labour input. The diminishing returns from TFP and labour productivity suggest that Vietnam needs to shift towards a more innovation-centric approach to sustain its growth trajectory in the long term.
To address these challenges, experts recommend that Vietnam focus on several key areas. First, the country should invest more in high-technology sectors that can drive future growth and reduce reliance on traditional industries. This includes enhancing the digital economy, which has already shown significant potential as a new growth driver. Second, supporting innovative startups is essential to foster a culture of entrepreneurship and innovation, which can generate new economic opportunities and drive competitiveness. Lastly, transitioning to a green economy is crucial for sustainable development, as it can help Vietnam address environmental challenges while opening up new markets and growth areas.
As Vietnam continues to navigate its path towards sustainable development, the government’s role in guiding this transition will be critical. The adoption of flexible and forward-looking policies that encourage innovation, support emerging sectors, and promote sustainability will be essential in ensuring that Vietnam’s economic growth remains robust, resilient, and inclusive.
In conclusion, while Vietnam has made significant strides in economic development, the need for innovation in its growth model is more urgent than ever. By focusing on high technology, supporting startups, and transitioning to a green economy, Vietnam can secure a sustainable and prosperous future for its economy and its people.
