Integration a central pillar for new direction

Integration a central pillar for new direction

From an underdeveloped economy, Việt Nam has grown into one of the world’s 32 largest economies with its economic scale expanding nearly 100 folds since 1986 and per-capita income from below $100 to nearly $5,000.

VinFast factory in Hà Tĩnh Province. International integration also helps enhance domestic capabilities, strengthen economic independence and self-reliance as the country aims to develop into a regional manufacturing and logistics hub.  VNA/VNS Photo Công Trường

International integration has become a central driver of Việt Nam’s development strategy as it propels the nation into the new era, amid intensifying geopolitical and economic competition and increasing demand for digital and green transitions.

Over four decades of economic reform, Việt Nam’s international integration process has delivered significant results. International integration has become a critical driver of strengthening domestic capacity and advancing national development.

From an underdeveloped economy, Việt Nam has grown into one of the world’s largest economies with its economic scale expanding nearly 100-fold since 1986, and per capita income moving from under US$100 to nearly $5,000. The country has also established trade relations with 230 economies and signed a raft of major free trade deals.

Việt Nam is now also among the world’s top 20 countries in trade and one of the 10 largest remittance recipients, underscoring the country’s rising position in the global economic system.

However, economists say that the next phase of development will depend not only on consolidating existing gains but also on effectively seizing new opportunities amid global volatility.

Geopolitical tensions and global production shifts have made Việt Nam – a country with political stability, improving business climate and an extensive free trade agreement (FTA) network – an increasingly attractive investment destination.

Industry 4.0 is also opening new opportunities for productivity and quality growth while e-commerce and the digital economy are enabling market expansion more easily beyond traditional geographic and logistical barriers.

Global push toward sustainable development, green growth and renewable energy is also creating room to attract quality investment and enhance the country’s image in the international arena.

As these shifts require a more flexible, comprehensive and intensive integration, Resolution 59 on international integration, adopted earlier this year by the Communist Party of Việt Nam, is deemed a landmark policy that defines international integration as a strategic engine to guide Việt Nam into the new era.

The resolution targets placing Việt Nam among the world’s top 40 countries in the global innovation index, ensuring at least 40 per cent of enterprises engage in innovation and positioning the country as a competitive destination for tourism within the global top 30 as well as largely fulfilling the UN's Sustainable Development Goals.

Building inner strength

Trần Lê Hưng from France’s Gustave Eiffel University said the resolution would provide a foundation for transforming Việt Nam into a country with a more proactive voice on the international stage. He expected that Việt Nam could see a fundamental shift in economic and political standing within the next decade.

International integration would also help upgrade domestic capability, strengthen economic independence and self-reliance as the country aims to develop into a regional manufacturing and logistics hub and to play a more active role in global value chains, moving toward innovation-led growth.

Challenges exist, however, according to Phan Cao Nhật Anh, deputy director of the Institute for South Asian, West Asian and African Studies under the Vietnam Academy of Social Sciences. He pointed to rising threats such as cyberattacks, data security risks, food and energy insecurity, unfair competition, unsustainable growth and hostile forces.

Draft documents prepared for the 14th National Party Congress, slated for January next year, highlight the need for a coordinated and innovative approach to diplomacy and international integration, closely aligned with Resolution 59.

Translating the resolution into concrete measures will enable Việt Nam to maximise domestic potential, better utilise external resources and expand its development space, policymakers stress.

The National Assembly is considering passing a separate resolution on special mechanisms and policies to enhance the efficiency of international integration, including tax, infrastructure and financial incentives for enterprises to promote international integration, digital transformation, green production and global supply chains.

Resolution 59 is also being implemented alongside other core policy frameworks, including those on science and technology and innovation and private sector development, which together help strengthen Việt Nam from within.

Prime Minister Phạm Minh Chính said Việt Nam continued to expand and upgrade its network of partnerships, with the signing of over 260 international commitments and agreements so far this year, about twice the number made in 2024.

The PM also called for stronger oversight and follow-up mechanisms to ensure effective implementation of international commitments, urging ministries and local governments to focus on removing bottlenecks to facilitate implementation.

He also emphasised the need to step up economic diplomacy, expand markets for Vietnamese goods, particularly agricultural products, and strengthen participation in global supply and value chains.

Leveraging trade deals

VinFast factory in Hà Tĩnh Province. International integration also helps enhance domestic capabilities, strengthen economic independence and self-reliance as the country aims to develop into a regional manufacturing and logistics hub.  VNA/VNS Photo Công Trường

Minister of Industry and Trade Nguyễn Hồng Diên said the ministry would continue negotiating and effectively implementing FTAs.

The focus would be on addressing existing bottlenecks to better leverage the 17 FTAs currently in force, while pushing ahead with efforts to expand and diversify export markets.

Priority would also be given to studying new and high-potential markets with untapped room for growth in the Middle East, Africa and Latin America.

Việt Nam also planned to launch negotiations on a preferential trade agreement with Pakistan and push ongoing reciprocal trade negotiations with the US, with the aim of securing the most favourable commitments for Việt Nam and promoting a comprehensive, fair, balanced and sustainable FTA, Diên said.

According to Phạm Quỳnh Mai, deputy director of the ministry’s Multilateral Trade Policy Department, it is critical to consistently and effectively implement the strategic orientations set out by Resolution 59.

It is necessary to make full use of existing FTAs to boost exports, expand markets and drive growth.

Việt Nam will also study new and high-potential markets, particularly in the Middle East, Africa and Latin America while advancing negotiations on new FTAs, including with the European Free Trade Association, the Mercosur bloc in the Americas, the Gulf Cooperation Council, Pakistan, and Egypt.

International trade would remain a key growth driver for Việt Nam through 2030, with the industry and trade sector continuing to play a leading role in advancing international economic integration, said Nguyễn Minh Khôi, public policy specialist at the Tony Blair Institute for Global Change.

He said policy initiatives such as an FTA portal, a related performance index and a comprehensive model to support enterprises along value chains could significantly improve Việt Nam’s export performance.

As new-generation FTAs increasingly emphasise standards related to environmental protection, carbon emissions, labour rights and digital data, the Ministry of Industry and Trade should provide support to enterprises in accessing green finance, clean technologies and digital traceability systems so that they can meet new international standards and strengthen competitiveness.

Việt Nam could proactively propose updates, adjustments or expansions to existing FTAs to address challenges related to the digital economy, technology and sustainable trade which are reshaping the global economic landscape, he added. 

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