Strategic shift in the 2021-2025 term turns Vietnam from resilience to renewal

THE HANOI TIMES — Vietnam has weathered unprecedented global turbulence and emerged with strong and comprehensive socio-economic gains, strengthening national resilience and elevating its international standing.

These achievements highlight the Government’s proactive, decisive and innovation-driven governance during the 2021–2025 term, creating a solid foundation for a new phase of development aimed at double-digit growth.

Prime Minister Pham Minh Chinh shared these assessments in an interview with the Vietnam News Agency on the occasion of the 2026 New Year.

Turning adversity into momentum amid global uncertainty

Chinh said the current term unfolded amid fast-changing and highly complex global conditions, marked by challenges that exceeded forecasts and had no clear precedent.

The Covid-19 pandemic and its prolonged consequences, intensified strategic competition among major powers, conflicts and political instability, non-traditional security threats, climate change and natural disasters all weighed heavily on global growth.

In addition, high inflation and rising public debt pushed many economies beyond safe thresholds.

Domestically, Vietnam faced a dual impact from external shocks and long-standing internal constraints, with difficulties outweighing favorable conditions.

Under the leadership of the Party, the Government adopted an approach defined by proactivity, flexibility, creativity, determination and efficiency, guided by the principle of moving forward rather than retreating.

Accordingly, institutional, policy and governance breakthroughs were introduced to shift the development trajectory and adapt to new realities.

Vietnam swiftly contained Covid-19, achieving one of the world’s top five vaccination coverage rates. The mortality rate stood at 0.37%, far below the global average of around 1%, enabling an early transition from a zero Covid strategy to safe and flexible adaptation, followed by the rollout of a socio-economic recovery and development program.

One of the most notable highlights of 2025 and the entire term was the drive to improve institutions and streamline the state apparatus, alongside the rollout of a two-tier local government model.

The Government advised the Politburo on issuing 10 breakthrough resolutions covering key strategic areas and submitted corresponding legal frameworks to the National Assembly. The number of laws, ordinances and resolutions enacted during the term was the highest on record.

Administrative restructuring reduced state administrative staffing by 145,000 positions and cut recurrent expenditure by around VND39 trillion (US$1.5 billion) annually. Local governments have largely shifted from an administrative management mindset to a service-oriented and development-enabling role.

At the same time, thousands of administrative procedures and business conditions were simplified or abolished, easing burdens on citizens and enterprises.

Strong economic rebound and record-setting performance

Vietnam’s socio-economic outlook continued to improve, with each year outperforming the previous one.

In 2025, the country met and exceeded all 15 key socio-economic targets, with GDP growth reaching 8.02%, placing the country among the fastest-growing economies in the region and globally, while macroeconomic stability was maintained and inflation kept at 3.31%.

State budget revenue hit a record of VND2.65 quadrillion ($102 billion), nearly 35% above estimates and around 30% higher than in 2024.

Meanwhile, total registered FDI reached US$38.4 billion, with the disbursed rate reached 72%, the highest level so far.

Meanwhile, international trade surpassed US$930 billion for the first time, while agricultural exports exceeded US$70 billion.

GDP reached over US$514 billion, and per capita income rose above US$5,000, placing Vietnam firmly in the upper-middle-income group.

Regarding businesses, the number of operating enterprises hit more than one million, over 20% higher than in 2020, underscoring the private sector’s role as a key growth engine.

Strategic infrastructure, innovation and digital transformation accelerate

The 2021-2025 period marked a breakthrough in strategic infrastructure development, with public investment totalled around VND3.4 quadrillion ($130 billion), nearly 55% higher than the previous term.

By the end of 2025, Vietnam had completed about 3,345 kilometers of expressways and over 1,711 kilometers of coastal roads, surpassing set targets.

In 2025 alone, the country kicked off and inaugurated 564 major infrastructure projects with nearly 75% of them funded by private capital.

In addition, science and technology, innovation and digital transformation advanced rapidly, as Vietnam ranked second in ASEAN for AI investment, the 6th among 40 countries in the AI Index and the 44th out of 139 economies in the Global Innovation Index.

Especially, the 5G mobile networks now cover over 90% of the population and the National Data Center has entered operation.

Better social welfare and living standards

Between 2021 and 2025, more than VND1.1 quadrillion ($41.8 billion) was allocated to social welfare. Average monthly income rose from VND5.5 million or $209 in 2020 to VND8.4 million in 2025, while the multidimensional poverty rate declined to 1.3%.

The country also completed its goal of eliminating temporary and dilapidated housing more than five years ahead of schedule. Hundreds of thousands of social housing units and homes for disaster-affected communities were delivered nationwide.

Vietnam’s social progress was reflected internationally, ranking 46th in the World Happiness Report 2025, up 37 places from 2020.

Alongside social investment, the government mobilized strong state resources to support recovery and long-term resilience. In 2025, about VND8.8 trillion from the central budget and more than 42,100 tons of rice were allocated to disaster-hit localities.

The Quang Trung Campaign repaired or rebuilt more than 41,000 houses damaged by storms and floods, including 1,597 homes rebuilt entirely. At the same time, 100 combined primary and lower secondary schools are being constructed in border communes, scheduled for completion before the 2026-2027 school year.

Foreign affairs remain a major achievement, with Vietnam upgrading relations with 17 countries, bringing the number of partners at a comprehensive partnership level or higher to 42 and establishing comprehensive strategic partnerships with all five permanent members of the United Nations Security Council.

Prime Minister Pham Minh Chinh said government governance has followed the principles of discipline and responsibility, proactive action and streamlined effectiveness, with people and businesses at the center. Since the start of the term, government leaders have made 239 field trips to localities to address bottlenecks directly.

Entering 2026, the first year of implementing the 14th National Party Congress Resolution and the 2026-2030 development plan, Vietnam aims for double-digit growth while maintaining macroeconomic stability.

Key drivers include science and technology, digital transformation, strategic infrastructure, high-quality human resources and deeper international integration.

Guided by integrity, discipline, unity, innovation and service to the people, the government seeks to lead Vietnam confidently into a new era of prosperity, resilience and shared well-being.