Vietnam’s remarkable economic transformation is a compelling story of resilience and strategic reform. Once regarded as one of the poorest economies in the world during the 1980s, with a per capita GDP of just $15,470, the country has successfully transitioned into a dynamic exporter and a lower middle-income nation. This transformation began with the abandonment of strict socialist policies in favor of a more market-oriented approach, which opened the economy to trade and foreign investment.
The shift towards a market economy, initiated in the late 1980s with the Đổi Mới (Renovation) reforms, allowed Vietnam to attract significant foreign direct investment (FDI). Major global companies, including South Korea’s Samsung, established operations in Vietnam, contributing to the country’s rapid industrialization and export growth. As a result, Vietnam has become one of the most open economies among developing nations, with a consistent GDP growth rate of at least 5% per year since 2010, peaking at 6.8% in 2017.
This economic growth has been fueled by a focus on manufacturing and exports, particularly in textiles, electronics, and agricultural products. Vietnam’s strategic location and competitive labor costs have further enhanced its attractiveness as a manufacturing hub in Southeast Asia. The country has also benefited from globalization, which has integrated it into global supply chains and increased its trade volume significantly.
Today, Vietnam stands as a testament to the power of economic reform and globalization, evolving from a struggling post-war economy to a thriving player in the global market. Its journey illustrates how strategic policy changes and openness to foreign investment can lead to substantial economic development and prosperity.
How Vietnam Went From the Poorest Economy in the World to a Prosperous Exporter
By: FEE
EN 
VI