Fifty years after the reunification of North and South Vietnam, the country has written a new chapter in its development story. For years, the World Bank has hailed Vietnam as a model of successful economic transformation - particularly since the launch of its Doi Moi (Renovation) reforms in 1986.

According to the World Bank, Vietnam’s post-1986 economic reforms - coupled with favorable global conditions - rapidly elevated the country from a low-income status to a lower-middle-income nation.

Data from the General Statistics Office show that Vietnam’s GDP in 1990 stood at only 41.96 trillion VND (approximately $1.63 billion USD). By 1992, it had surpassed 100 trillion VND, reaching 110.53 trillion VND (approx. $4.29 billion USD).

In 2006, GDP exceeded 1 quadrillion VND (approx. $38.85 billion USD) for the first time.

Despite global financial crises and the severe impact of the COVID-19 pandemic, Vietnam’s GDP growth has remained consistently stable. In 2023, GDP reached an all-time high of 10.32 quadrillion VND (approx. $400 billion USD), marking a nearly 246-fold increase over 33 years.

Similarly, Vietnam’s gross national income (GNI) in 1990 stood at just 39.28 trillion VND (approx. $1.52 billion USD), and rose to 106.76 trillion VND by 1992 (approx. $4.14 billion USD). By 2006, it had reached nearly 1.04 quadrillion VND (approx. $40.4 billion USD) - a 26.4-fold increase from 1990.

By 2023, Vietnam’s GNI was approaching 9.79 quadrillion VND (approx. $379 billion USD) - a 249-fold increase since 1990.

A rise in per capita income

According to preliminary 2023 statistics, Vietnam’s per capita income reached $4,323 per person per year.

This is a 50-fold increase from just $86 in 1988, when Vietnam began opening its economy, and more than quadruple the $1,000 level in 2007 - the year the country joined the World Trade Organization (WTO). Vietnam’s pace of income growth has surpassed that of several regional peers, including Thailand and the Philippines.

As of July 2023, countries are classified into four income groups based on per capita income:

Low income: below $1,135
Lower-middle income: $1,136 to $4,465
Upper-middle income: $4,466 to $13,845
High income: above $13,845

As of 2023, Vietnam remained in the lower-middle-income group, but is now on the threshold of joining the upper-middle-income category.

In recent years, Vietnam’s monthly per capita income has also grown rapidly. From just 295,000 VND/month in 1999 (approx. $11 USD), it increased to nearly 1.39 million VND/month in 2008 (approx. $53 USD), and surpassed the 2 million VND threshold shortly afterward.

By 2012, monthly per capita income officially exceeded 3 million VND (approx. $115 USD). By 2023, it had approached 5 million VND/month (approx. $194 USD) - a nearly 17-fold increase compared to 1999.

However, Vietnam’s current growth drivers are reaching their limits. To achieve its ambition of becoming an upper-middle-income country by 2030 and a high-income nation by 2045, bold structural reforms are essential.

Key to this vision is the ongoing effort to streamline government operations, merge ministries and local administrations, and lay the groundwork for a new era of Vietnamese economic advancement - a transformative phase that aims to elevate the nation into global prominence.

Tam An