Overview: Development News, Research, Data - World Bank Group

Viet Nam is a remarkable development success story. Economic reforms since the launch of Đổi Mới in 1986, coupled with beneficial global trends, have helped propel Viet Nam from being one of the world’s poorest nations to a middle-income economy in one generation. Real GDP per capita soared from less than US$700 in 1986 to almost US$4,500 in 2023 (in constant 2023 USD), a more than sixfold increase, and the share of the population living in poverty with less than US$3.65/day (in 2017 purchasing power parity) plummeted from 14.0 percent in 2010 to less than 4 percent in 2023.

Thanks to its solid foundations, the economy has proven resilient through different crises. Economic growth is projected to reach 6.1 percent in 2024 and 6.5 percent in 2025, up from 5 percent in 2023, driven by increasing global demand and restored domestic consumer confidence.

Health outcomes have improved along with rising living standards. Infant mortality rates fell from 32.6 per 1,000 live births in 1993 to 16 in 2022. Life expectancy rose from 70.5 to 75 years between 1990 and 2022. Viet Nam’s universal health coverage index is at 73—higher than regional and global averages—with 93 percent of the population covered by the national health insurance scheme by 2023.

Viet Nam has made significant educational progress, achieving universal primary education in the early 2000s with a net enrollment rate above 98%. Secondary education has also improved, with lower secondary enrollment at 95% and upper secondary at 80% as of 2024. Viet Nam's learning-adjusted schooling averages 10.2 years, second only to Singapore in ASEAN, and its human capital index is the highest among lower middle-income economies. However, tertiary education faces challenges, with a gross enrollment rate of 30-35%, limited capacity, uneven quality, and a skills mismatch with labor market demands. While top universities have progressed, smaller institutions struggle with outdated curricula and limited resources.

Access to infrastructure services has increased dramatically. As of 2019, almost 100 percent of the population used electricity as their main source of lighting, up from just 14 percent in 1993. Access to clean water in rural areas has also improved — up from 17 percent in 1993 to 51 percent in 2020.

Viet Nam aspires to become a high-income country by 2045. Achieving this goal will require an average annual per capita economic growth of about 6 percent for the next 20 years, which would more than triple income per capita. Viet Nam also aims to grow in a greener, more inclusive way. At COP27, it pledged to reduce methane emissions by 30 percent and halt deforestation by 2030, and achieve net zero carbon emissions by 2050.

Several megatrends are shaping Viet Nam’s future. The population is rapidly aging, global trade is declining, automation is increasing, environmental degradation is worsening, climate change is posing a greater threat than ever, and the impacts of the COVID-19 crisis could undermine progress toward development goals.

To rise to these challenges, Viet Nam needs to improve its policy implementation, particularly in the areas of finance, the environment, digital transformation, poverty reduction/social protection, and low-carbon infrastructure. Adapting to climate impacts and pursuing a growth strategy that steers the economy away from carbon-intensive production will help Viet Nam achieve its climate objectives while expanding its GDP enough to achieve high-income status by 2045.

Last Updated: Oct 8, 2024