From a modest economy to a global player

Vietnam represents a rare success story in transitioning from a centrally planned system to a socialist-oriented market economy with one of the highest degrees of openness in the world. In the early days of Đổi Mới (Renovation) process starting in 1986, GDP stood at just US$26.3 billion, the country was plagued by food shortages, and production remained stagnant. Nearly four decades later, GDP has multiplied almost 60 times, reaching US$476.3 billion in 2024. This leap has placed Vietnam among the world’s top 20 trading economies, a striking testament to the power of international integration.

Agriculture epitomises this journey. Once dependent on food imports, Vietnam is now a leading rice exporter, shipping approximately 9 million tonnes of the staple to nearly 200 countries with an export value of US$5.7 billion in 2024. The globally acclaimed ST25 variety, recognised as the world’s best rice, has elevated the reputation of Vietnamese agricultural products. Beyond rice, exports of coffee, pepper, cashew, rubber, and tea have expanded rapidly, bringing back US$62.5 billion from agro-forestry-fishery shipments abroad in 2024, with a trade surplus of nearly US$18 billion.

Much of this success stems from Vietnam’s strategy of deep international integration. Joining the World Trade Organisation (WTO) in 2007 marked a turning point, helping to open markets, spur reforms, and attract foreign investment. Since then, Vietnam has signed and implemented 19 free trade agreements (FTAs), including new-generation deals like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU – Vietnam Free Trade Agreement (EVFTA). These agreements not only boost trade but also drive domestic reforms, enhance competitiveness, diversify markets, and reduce reliance on a few key partners.

Experts note that FTAs have allowed Vietnam to “link interests, preserve peace, and foster development,” while benefiting from tariff preferences and embedding itself in global supply chains. The journey of Vietnamese rice captures this transformation: from shortages and rationing in the 1980s to the first rice exports in 1989, surpassing 1.5 million tonnes by 1992, and today, cementing its status as a global rice powerhouse.

Challenges ahead

Despite its rise as a dynamic trading hub, Vietnam faces critical challenges on its path to sustainable growth. Economists stress that the country must move beyond low-cost, labour-intensive growth toward higher value-added production. This requires stronger innovation and technological upgrading, along with reducing dependence on raw material imports and prioritising high-tech industries.

Administrative reforms, modern infrastructure, green logistics, and the harnessing of the Fourth Industrial Revolution will be key enablers. If leveraged effectively, these shifts could propel Vietnam to a new level of global influence.

World Bank lead economist Andrea Coppola underscores that Vietnam has recorded impressive achievements, including rapid GDP growth, sharp poverty reduction, and improved education and health. Yet, he cautions that export growth must prioritise quality, not just quantity. While export volumes have risen tenfold over the past two decades, average value has only doubled. To reach high-income status by 2045, he says, Vietnam must climb higher up the value chain, especially in emerging sectors such as semiconductors, electronics, footwear, and large-scale manufacturing.

At the same time, structural weaknesses remain. Exports are heavily reliant on foreign-invested enterprises, while domestic firms still run trade deficits. Key industries are dominated by low-value processing and vulnerable to global shocks. Heavy reliance on intermediary trading limits Vietnam’s ability to capture greater value and build strong national brands. Experts also warn that excessive concentration in a handful of markets and dependence on imports, particularly from Asia and China, risk locking Vietnam into low-value positions within supply chains.

Vietnam’s story is one of resilience, reform, and reinvention. From food shortages and rationing to a top global trading nation, the country has redefined itself through openness and integration. Its extraordinary rise offers not only economic progress but also a stronger international presence and a pathway toward sustainable development in the decades ahead.

80 years on: Vietnam emerges from rice importer to Top 3 global exporter

VOV.VN - Eight decades after the devastating 1945 famine that claimed over 2 million lives, Vietnam has achieved a historic transformation to become one of the world’s top three rice exporters, with exports reaching around 9 million tonnes in 2024.