Vietnam Strives to Join the Ranks of High-Income Countries by 2045
7 min read
Vietnam is accelerating its economic transformation and upgrading through a series of new policy reforms and deepened international cooperation, striving to join the ranks of high-income countries by 2045. On October 16, multiple important events showcased Vietnam's latest progress in innovation development and regional cooperation.
Here are three summarized points about Vietnam’s efforts to promote innovation and international cooperation:
- Vietnam’s policy reforms have shifted to focus on business innovation, highlighting the role of enterprises and introducing incentives such as tax benefits, institutional testing environments, and mechanisms for technology adoption and transfer.
- The country is strengthening international collaboration, notably through initiatives like the National Innovation Center, which supports partnerships between local and global technology firms, universities, and research institutes.
- Regional cooperation is expanding as Vietnam prepares for major events like the 2027 APEC summit, upgrading infrastructure and aiming for strong innovation-driven economic growth to meet its ambitious goal of becoming a high-income nation by 2045.
On October 16, the French Institute for Research on East Asia and the National Institute for Oriental Languages and Civilizations jointly held a seminar in Paris titled "What Kind of Innovation System Does Vietnam Need?" This was an important event within the framework of the 2025 "France-Vietnam Year of Innovation". Participating experts believed that Vietnam should clarify priority directions for reform and innovation to ensure alignment with Vietnam's actual conditions.
At the seminar, Lê Văn Cường, Honorary Research Director at the French National Centre for Scientific Research, stated that Vietnam should promote innovation following the theory of "creative destruction," boldly creating new things and daring to eliminate outdated models. He emphasized that the development of artificial intelligence and robotics should make tangible contributions to agricultural production, food processing, and people's livelihoods, and that innovation only truly matters when it can improve farmers' lives.
Vietnamese Ambassador to France Đinh Toàn Thắng stated at the event that science, technology, innovation, and digital transformation are key breakthroughs driving Vietnam's sustainable development. He pointed out that France has always been regarded by Vietnam as a technological powerhouse and comprehensive strategic partner, with both sides having enormous cooperation potential in multiple fields including artificial intelligence, cybersecurity, and civilian nuclear energy.
On the same day, Vietnamese Ambassador to the United States Nguyễn Quốc Dũng delivered a keynote speech at the opening ceremony of the first Potomac Dialogue held in Washington, emphasizing that the Asia-Pacific region is facing challenges brought about by profound changes in the global political and economic landscape. He stated that Vietnam will assume the APEC rotating chairmanship for the third time in 2027, committing to work closely with the United States and other member economies to jointly address issues of common global concern.
Policy reforms unleash innovation vitality
The Vietnamese government's recent series of policy reforms are injecting new momentum into innovation and development. The "Law on Science, Technology and Innovation," which came into effect on October 1st, elevates innovation to equal status with science and technology for the first time in Vietnamese legislation. The law introduces a "regulatory sandbox" mechanism, allowing the testing of new models and technologies in controlled environments.[1][2]
The new law places enterprises at the core, encouraging businesses to invest in R&D activities, with R&D expenditures being deductible as production and operational costs and eligible for tax reductions. The government has also issued Decree No. 249, establishing mechanisms and policies to attract experts in science and technology, innovation, and digital transformation.[2][3]
Vietnamese Prime Minister Pham Minh Chinh stated at a recent event that, barring major disruptions, Vietnam's GDP growth rate in 2025 could exceed the 8% target. He urged the private sector to strengthen innovation, digital transformation, and green growth, aligning business development with the national goal of becoming a high-income country by 2045.[4]
Building a New Framework for Regional Cooperation
Vietnam is actively preparing to host the APEC conference in 2027, with infrastructure construction projects on Phu Quoc Island in An Giang Province having been fully launched. These projects include roads, water supply infrastructure, smart city facilities, waste treatment, and conference centers.[1][2]
In its "2025 Vietnam Economic Survey" report released in June, the Organisation for Economic Co-operation and Development noted that the Vietnamese government has set goals of achieving upper-middle-income status by 2030 and high-income status by 2045. The report considers the 2045 target to be ambitious, requiring per capita income to grow at an annual rate of 6% over the next 20 years.[3][4]
Kim Ngoc Thanh Nha, Deputy Director of Vietnam's National Innovation Center, stated that France, with its strengths in fundamental research, high technology, and a vibrant startup ecosystem, can support Vietnam in developing human resources, technology transfer, and building innovation centers. Conversely, Vietnam, with its dynamic market, young workforce, and ability to rapidly adopt new technologies, provides fertile ground for putting French innovative ideas into practice.[5][6][7]
Reference sources:
[1](https://english.news.cn/asiapacific/20250924/7ca300e7efc4467fb944cbd4259b8f95/c.html)[2](https://vietnamnews.vn/politics-laws/1725897/an-giang-urged-to-complete-projects-for-apec-2027-ahead-schedule.html)[3](https://www.oecd.org/en/publications/oecd-economic-surveys-viet-nam-2025_fb37254b-en/full-report/harnessing-trade-and-investment-flows-to-boost-productivity_98d56c90.html)[4](https://www.oecd.org/en/publications/oecd-economic-surveys-viet-nam-2025_fb37254b-en.html)[5](https://www.vietnam.vn/en/dien-dan-khai-phong-tiem-nang-doi-moi-sang-tao-viet-nam-phap-2025)[6](https://en.vietnamplus.vn/vietnam-france-foster-innovation-cooperation-post329777.vnp)[7](https://en.qdnd.vn/foreign-affairs/bilateral-relations/vietnam-france-foster-innovation-cooperation-583260)[1](https://m.fastbull.com/news-detail/vietnam-enacts-major-policy-reforms-in-october-2025-4346762_0)[2](https://vietnamlawmagazine.vn/new-science-technology-law-to-drive-nations-competitiveness-in-new-era-75335.html)[3](https://en.vietnamplus.vn/policies-issued-to-attract-experts-in-science-technology-innovation-digital-transformation-post326950.vnp)[4](https://english.news.cn/20251011/3d6ccd64010b459c9435b0a0724789c6/c.html)