Hanoi (VNA) - Institutional reform should take priority in Vietnam’s effort to renew its development model, as it is the key to unlocking new growth drivers and development space, economists and public policy experts have said.
Resolution No. 19-NQ/TW, adopted at the third plenum of the 14th Party Central Committee, identifies breakthroughs in institutions and reforms as the starting point for renewing Vietnam’s development model, alongside reforms in national governance, organisation and operations to build new development capacity.
Institutional reform as cornerstone of development model
Assoc. Prof. Dr. Nguyen Thi Kim Tien, Dean of the Faculty of Economics at the National Academy of Public Administration and Governance, said international experience shows that no development model remains effective indefinitely. As traditional growth drivers weaken, countries must adapt through institutional reform, with economies such as Japan, the Republic of Korea, Singapore and China demonstrating that major development breakthroughs have consistently been underpinned by institutional reforms.
She described the resolution as a significant advance in the Party’s development mindset, placing institutional reform at the centre of efforts to modernise national governance. As global competition increasingly hinges on knowledge, technology and innovation, institutional quality and national governance capacity have become more decisive than natural resources or low-cost labour in determining national competitiveness.
After four decades of Doi moi (renewal), Vietnam now needs to build new development capacity powered by science and technology, innovation, digital transformation, data and high-quality human resources, she said, adding that achieving this goal requires removing institutional bottlenecks while improving governance to mobilise and allocate resources more efficiently.
Dr. Le Khanh Cuong from the National Economics University under Vietnam National University, Hanoi, said Vietnam’s traditional growth model, based on resource exploitation, inexpensive labour and extensive capital investment, has largely run its course.
To achieve the country's strategic target of double-digit growth, future momentum must come from productivity, science-technology, innovation and more efficient resource allocation. These, he noted, depend fundamentally on the institutional framework, including the legal system, decision-making mechanisms and accountability.
He described institutions as the “operating system” of the development model, noting that improvements in infrastructure, technology and human resources cannot deliver their full impact without an effective institutional framework. Well-designed reforms, meanwhile, can unlock resources tied up in land, capital, data and human talent without requiring additional investment.
The resolution rightly identifies institutional reform and national governance as the foremost breakthroughs, arguing that effective institutions provide the foundation for all other development priorities, including science and technology, strategic infrastructure and high-quality human resources.
Nguyen Manh Hai, a lecturer at the National Economics University (NEU) Hanoi, said the reform agenda goes beyond removing bottlenecks to creating new development capacity. He noted that institutions are now expected to proactively enable new growth areas such as the digital economy, marine economy, underground and low-altitude space, and data- and AI-driven business models. According to him, a modern governance system is essential to support Vietnam's new development model, making institutional reform the cornerstone for unlocking the country's long-term growth potential.
From institutional design to effective implementation
Experts said a highlight of the Party Central Committee's third plenum is that the resolution goes beyond calling for institutional breakthroughs by stressing the need to reform the organisation, governance and operation of the state in a coordinated manner. This signals a shift in reform mindset from improving the institutional framework to strengthening its implementation capacity.
Tien said institutional quality depends not only on sound laws and policies but also on effective execution, coordination and governance. Even a progressive legislation system cannot translate into development gains if implementation remains slow or fragmented.
She called for a shift from a management-oriented approach to one focused on enabling development, supported by a transparent, stable and predictable legal framework capable of adapting to rapid technological advances, digital transformation and emerging business models.
According to Cuong, such reforms will deliver tangible benefits for citizens through more efficient public services and lower administrative costs, while enhancing transparency and public trust. Businesses, particularly in the private sector, will benefit from lower compliance costs, reduced legal uncertainty and greater policy predictability, encouraging long-term investment and innovation.
At the national level, streamlined governance and digital administration will strengthen Vietnam’s investment climate and improve its competitiveness in attracting high-quality foreign investment as global supply chains continue to evolve, the experts said.
They noted that institutional reform is not merely an issue for the state apparatus but a prerequisite for transforming Vietnam’s resources and potential into sustainable development capacity, supporting the country's goal of becoming a high-income developed nation by 2045./.
