The Vietnamese Economy’s Robust Growth “Remains on Track”

19 December, 2024

Processing tra fish fillets for export. (Photo: Vu Sinh/VNA)

In an interview with Vietnam News Agency correspondents in Australia, Professor Emeritus Hal Hill of the Crawford School of Public Policy at The Australian National University (ANU) assessed Vietnam’s socio-economic development in 2024, stating that the country’s strong economic growth momentum has been maintained and recognized in the latest Asian Development Outlook by the Asian Development Bank (ADB).

This is one of the examples of international rankings that showcase Vietnam’s impressive progress in economic and social terms.

According to Professor Hal Hill, Vietnam is on its way to becoming a “high-income economy,” which would have been unimaginable in the late 20th century. However, he also pointed out that the country is facing several developmental challenges. The global economic and security environment is highly volatile and uncertain, particularly due to the relationship between the two largest economies in the world, China and the United States.

Furthermore, high-income economies necessitate significant policy reforms, especially in terms of higher-quality governance, stronger and more independent institutions (including the judiciary), and a level playing field for all businesses, regardless of ownership.

Professor Hal Hill stated that the “easy phase” of industrialization oriented towards exports is over, wages are rising, and the dualistic economic structure (referring to the coexistence of traditional and industrial sectors) will need modification.

Regarding foreign relations, Professor Hal Hill suggested that Vietnam should diversify its economic and strategic partnerships, especially in an era of global instability. Hence, the upgrades in relations to a Strategic Partnership with Australia (March 2024), France (October 2024), and Malaysia (November 2024) are significant moves by Vietnam in 2024.

However, he noted that these upgraded agreements should not merely be “pieces of paper” but must translate into actions, especially in fostering business-to-business relationships.

In Professor Hal Hill’s view, Australia and Vietnam share a close working relationship with great potential for rapid development, and the Vietnamese community in Australia plays a crucial role in facilitating bilateral relations.

Nevertheless, he pointed out that Australia’s outward investment is still primarily directed towards traditional business partners, particularly the United States and the United Kingdom, missing out on the evident dynamism in Southeast Asia.

Layton Pike, a member of the Advisory Board of the Australia-Vietnam Policy Institute, highlighted that balancing regional and global relationships is a notable feature of Vietnam’s foreign policy. In 2024, Vietnam and Australia elevated their relationship to a Strategic Partnership.

He expressed confidence that after the leadership transition in 2024, Vietnam would continue to navigate effectively in the face of increasing geopolitical complexities in the coming years.

Thanh Tu