The Government News quoted World Bank (WB) Division Director for Vietnam, Cambodia and Lao PDR Mariam J. Sherman as telling VGP in a recent interview that Vietnam’s achievements give the nation a powerful springboard for the next stage of its journey to realize the ambition of becoming a high-income, green, and inclusive economy by 2045.

Vietnam's progress since the Doi Moi reforms in 1986 is one of the world's most remarkable development stories, from one of the poorest in the world to a vibrant middle-income economy in under four decades, Ms. Sherman said.

According the WB official, extreme poverty is now below 1 per cent. Real incomes have risen six-fold and life expectancy has increased by 7 years since the early 1990s.

Perhaps the most striking change is Vietnam's global integration, she remarked, adding that trade now exceeds 160 per cent of GDP, among the highest ratios in the world, thanks to its deep integration into global supply chains, from textile and footwear to electronics.

These changes are also reflected in people's lives, she said, noting that Vietnam has a 57-million-strong workforce, more than 20 million new jobs created since the Doi Moi reforms, and over 80 per cent now employed in the private sector.

"From the WB's perspective, this is a story of vision, perseverance, and reform that has delivered real outcomes for people. We are proud to have been a partner over the past more than 30 years, providing technical assistance and nearly $26 billion in financing to support the country's profound transformation," she emphasized.

Vietnam makes important progress in institutional reform

Regarding Vietnam's institutional reform, the WB Division Director said, strong institutions are the backbone of sustained development. Research shows countries that successfully transition to high income all share one thing in common: effective and accountable institutions.

Vietnam has already made important progress by consolidating provinces, streamlining administrative structures through mergers of ministries and departments, and piloting digital government. These reforms matter because they are expected to enhance effectiveness and efficiency, including reduction of red tape for both citizens and businesses, noted Ms. Sherman.

As the economy becomes larger in size and more sophisticated in structure, stronger institutions will be vital to sustaining strong growth.

The critical shift will be for the state to move from directly driving economic activity to enabling it—creating a transparent, predictable, and rules-based environment where the private sector can thrive. This means a high-performing civil service, fair enforcement of rules, and strong mechanisms for accountability.

Every Vietnamese Dong (VND) of investment becomes more productive with better governance. Trust grows when rules are transparent and predictable, and businesses are more willing to invest in a well-functioning market environment.

The WB Group stands ready to support the government in building institutions that match the scale of its ambitions.

Ultimately, strong institutions will be the bridge between Vietnam's 2045 ambitions and results on the ground, highlighted the WB official.

Vietnam needs to improve quality growth

Vietnam enters this next stage from a position of strength, having shown remarkable resilience and maintaining growth through previous shocks.

The global landscape presents a sobering backdrop. The WB projects global growth of about 2.3% in 2025; trade tensions have intensified, and economic policy uncertainty is at its highest in decades.

For an export-driven economy deeply integrated into global value chains, shifts such as "friend-shoring" and rising foreign trade barriers pose real challenges. The era of easy export-led growth is closing fast.

To reach high-income status by 2045, research shows Vietnam would need to lift per-capita growth to around 6 per cent every year for the next two decades, and avoid the middle-income trap that has slowed many peers.

The path forward is quality growth, not just faster growth: higher productivity supported by quality infrastructure, innovation, digitalization and high-skilled workforce; and moving up the value chain beyond labor intensive and low-skilled manufacturing, while diversifying growth drivers and deepening regional partnerships.

Vietnam's advantages are real, with a young and talented workforce, macroeconomic stability, a strategic location in Asia's growth belt, and a proven capacity to learn and adapt.

"This is where the WB Group aligns with Vietnam's ambitions. We are aiming to move from plain-vanilla IBRD lending to also mobilizing private capital through blended finance, guarantees, risk insurance and project preparation facilitation", shared Ms. Sherman.

"Through the WB, IFC, and MIGA, we help put in place stable policies and infrastructure that attract investment, while directly providing financing, equity, guarantees, and risk insurance to crowd in private investment", she stated.