In a recent interview granted to Bangkok-based VOV correspondents, Dr. Watcharas Leelawath, former director of the Mekong Institute and a specialist on ASEAN economic cooperation, said Vietnam’s consistent growth performance sets it apart from many other emerging economies in the region.

He cited statistics saying Vietnam’s economy has expanded at an average annual rate of around 6–7% over the past 10 years, significantly outperforming several regional peers. Meanwhile, Thailand, for example, recorded average growth of only 1–2% over the same period. Even during the COVID-19 pandemic, Vietnam maintained positive growth while many economies contracted, before rebounding strongly from about 2% to 8%.

This reflects a pattern of sustained and resilient growth, Leelawath said, adding that rising per capita income and sharp poverty reduction further underscore the country’s progress.

Vietnam’s poverty rate fell from about 14% in 2010 to roughly 4% in 2023, according to official data.

A key driver behind Vietnam’s economic momentum has been its outward-oriented policy framework, which has made the country increasingly attractive to international investors. Vietnam has pursued an aggressive strategy of trade liberalisation, signing 15 free trade agreements (FTAs) covering 53 economies, one of the most extensive FTA networks in the developing world.

This approach has helped position Vietnam as a major export-oriented manufacturing hub. Preferential tariffs under FTAs – in many cases reduced to zero – have strengthened the economy’s appeal as a production base for multinational companies seeking access to global markets.

When foreign direct investment flows in, it creates jobs and reinforces Vietnam’s role as a manufacturing centre, Leelawath said, noting that investors are drawn by both market access and policy predictability.

Beyond trade, Vietnam has also made strides in digital transformation, which Leelawath described as another competitive advantage. He pointed to Vietnam’s role as ASEAN chair in 2020, when the bloc jointly promoted regional digital initiatives amid the pandemic.

Looking ahead, the economist said Vietnam faces both opportunities and challenges as it seeks to sustain high growth in the coming decade. Ongoing regulatory reforms aimed at aligning domestic standards with international norms – particularly in environmental governance – could enhance the country’s access to global markets, even if compliance entails higher short-term costs.

These reforms should be seen as an opportunity rather than a threat, he said, arguing that higher standards would strengthen Vietnam’s export prospects over the long term.

The larger challenge, he added, lies in moving up the global value chain. While Vietnam has become a major manufacturing hub, domestic firms still capture a relatively small share of value-added, particularly in high-tech sectors such as electronics.

Leelawath pointed out Vietnam exports large volumes of electronic products, but the value retained by local companies remains limited. The next step is to climb higher in the production chain and capture greater value.

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