A new development model on the path to socialism

Petr Tsvetov, Pravda, September 1-2, 2026 —

September 2 is the national holiday of the Socialist Republic of Vietnam. The Vietnamese people are celebrating the 81st anniversary of their independence with tremendous achievements. The economy continues to demonstrate strong, rapid growth. In the first half of 2026, the country’s GDP grew by 8.18%. This is the highest result among ASEAN members, where most economies grew between 2.8% and 6%.

However, this seemingly proud development figure does not satisfy Vietnam’s communists today. After all, at the 14th CPV Congress held earlier this year, a decision was made to ensure a growth rate of 10% for 2026–2030.

As part of the implementation of the socioeconomic policy adopted by the Party Congress, the Third Plenum of the CPV Central Committee, held in late July, adopted a resolution on updating Vietnam’s development model. Its essence lies in the transition from an extensive to an intensive economic model. Over the past 40 years (since the inception of the “doimoi” policy of renewal), Vietnam’s economic growth has relied primarily on foreign investment, cheap labor, and abundant natural resources. This model, Vietnam believes, has fulfilled its historical role, lifting the country from poverty to a major manufacturing economy. In 2025, Vietnam ranked 22nd in the world in economic strength, as measured by GDP at purchasing power parity.

However, when the goal is to transform the country into a developed one with a high per capita income—a goal set by the Party Congress for the period up to 2045—a different model is needed. The Third Plenum of the CPV Central Committee proposed a shift that envisions development based on increased labor productivity through innovation, advanced scientific knowledge, new technologies, and highly qualified human resources. The CPV Central Committee resolution defined the elements that form the new model. These include innovation, science and technology, digital transformation, a green economy, modernization of public administration, and improving the quality of human resources.

This shift in focus to high technology is entirely consistent with the country’s current level of scientific and technological development. Currently, 78.8% of the Vietnamese population uses the internet. The digital economy’s turnover reached $36 billion in 2024. Digital government services are being successfully implemented: last year, approximately 40% of citizen applications were processed digitally. Vietnam is among six countries in the world capable of producing 5G network equipment, with 40,000 stations of the new wireless standard located within its territory.

The breakthrough envisaged by the party decision also lies in placing national potential at the center of the entire development process, focusing on internal sources of growth. Everyone must participate in this process: state-owned and private enterprises, individual citizens (with private sector players having a special role), public organizations, universities, and other entities. This once again confirms the principle that formed the foundation of the reforms 40 years ago: all systems—from state to private capitalism—have a legitimate right to exist and are required to contribute to the nation’s overall wealth.

The new model places new responsibilities on local party and state authorities. The success of provinces, cities, and communities will now be measured not only by the number of investment projects implemented or the growth rate of regional GDP, but also by the development of innovation systems, the quality of human resources and management, and the capacity for interregional cooperation.

The July plenum concluded that there was a clear shift in thinking about development models: from growth based primarily on foreign capital, resources, and cheap labor to growth based on science, technology, innovation, and the quality of human resources.

The transition to a new model is not seen as a one-time event, but rather as a process that takes time. The resolution of the Plenum of the CPV Central Committee stipulates that the transition “to an independent, innovative, sustainable, and internationally integrated development model” will be largely completed by 2035.

General Secretary of the CPV Central Committee and President of Vietnam To Lam, summing up the results of the plenum, called on communists and all citizens of Vietnam to “show initiative, creativity, think boldly, act boldly and take responsibility for the sake of common interests.”