Wang Chengjiu and Lai Huiting: The Communist Party of Vietnam's Local Exploration in Advancing Modernization
"Modernization," as a trend of social development and a state of civilized progress, has become a synonym for the pursuit of advancement by all countries and nations in the contemporary world. However, for a period of time, the myth that "modernization equals Westernization" took root and exerted widespread influence, particularly in underdeveloped countries and regions. Currently, Chinese-path modernization led by the Communist Party of China has shattered this myth, triggering extensive discussion and attention regarding socialist modernization. This article attempts to collate and analyze the historical process of socialist modernization in Vietnam under the leadership of the Communist Party of Vietnam (CPV), with the aim of providing alternative material and support for relevant research and discourse.
I. The Historical Process of the Communist Party of Vietnam's Promotion of Modernization
In the mid-18th century, Britain took the lead in opening a path toward modernization through industrialization by leveraging the Industrial Revolution, achieving immense success and exerting a profound influence on many late-developing countries, including Vietnam. Following the founding of the Democratic Republic of Vietnam (DRV), under the direct influence of the Soviet model of modernization, industrialization was established as the fundamental path for the country to escape poverty and backwardness, create development opportunities, and catch up with the world's advanced nations. Consequently, Vietnam's modernization construction began with industrialization, and its practical process can be roughly divided into the following three stages.
(1) The Early Exploration Stage (1954–1986): Initiating Vietnam’s Modernization Process through Industrialization
the CPV’s earliest understanding of modernization can be traced back to the early days of the Democratic Republic of Vietnam. As early as September 1946, Trường Chinh [1], then a leader of the CPV Central Committee, noted in his work On the August Revolution: "There is no doubt that if the country is to be strong and the people happy, Vietnam must transform from an agricultural country into an industrial one (for only an industrially developed country can manufacture weapons to defend itself and produce more commodities, food, and utensils to improve the people's livelihood)." The CPV's formal exploration of the path of socialist modernization began after the victory in the resistance war against the French, as Northern Vietnam transitioned from the national democratic revolution into a new period of socialist revolution.
In 1960, the CPV held its 3rd National Congress. Based on an analysis of the direction of the Vietnamese revolution, it proposed for the first time the policy of implementing socialist industrialization in Northern Vietnam. The CPV pointed out that the direction of the Vietnamese revolution "can only be socialism and not capitalism." To change the country's current backward state and lead Vietnam "from a state dominated by small-scale production toward large-scale socialist production, there is no path other than socialist industrialization. Therefore, socialist industrialization is the central task of our country throughout the entire transitional period." The CPV further noted that "socialist industrialization is an objective law of development for all economically backward countries embarking on the socialist path," and "achieving socialist industrialization is for the purpose of establishing the material and technical foundations of socialism and creating the basic conditions for the victory of socialism." Specifically, achieving socialist industrialization in the North meant "while giving rational priority to the development of heavy industry, striving to develop agriculture and light industry, and establishing a modern socialist economy based on heavy industry, combining industry with agriculture, and developing proportionately," so as to turn Vietnam "into a country with modern industry and modern agriculture."
Due to the deep influence of the Soviet modernization model and an urgent desire to change the country's poverty and backwardness, the CPV believed that with the help of fraternal socialist countries and the concerted efforts of its own people, Vietnam could complete socialist industrialization in a relatively short period and subsequently build socialism. Thus, "advancing toward socialism fast, vigorously, and steadily" became the slogan for modernization during this period. To achieve such speed and goals, the CPV formulated a policy of "prioritizing the development of heavy industry," regarding it as the foundation of the socialist economy and the key to industrialization. At the 4th National Congress, the CPV continued to treat the priority development of heavy industry as the primary task and core strategy. It planned to basically complete the transformation from small-scale production to large-scale production in approximately 20 years. During the "Second Five-Year Plan," it utilized the subsidization mechanism [2] to concentrate and allocate vast amounts of manpower, financial resources, and material resources to heavy industrial sectors such as machinery manufacturing, energy, and chemicals, building numerous heavy industrial production units and further tilting industrialization toward heavy industry.
However, the development policy of "prioritizing heavy industry" and moving "fast, vigorously, and steadily" did not achieve the expected results; instead, it caused the national economy to lose balance and fall into crisis. In 1982, at the 5th National Congress, the CPV began to look for the crux of the problem and preliminary realized that the policy of "prioritizing heavy industry" was detached from Vietnam's socio-economic reality and was the direct cause of the obstruction of industrialization. Based on this, the CPV proposed that the primary task of Vietnam's industrialization throughout the 1980s was to properly solve the production of grain, foodstuffs, and consumer goods, stating that "efforts should be concentrated on developing agriculture, treating agriculture as the primary front." Yet, because the CPV failed to resolutely overcome subjective and impetuous thinking during this period, the shift in production focus was not completed, and agriculture, light industry, and handicrafts still did not receive sufficient attention.
Although the CPV's early exploration of modernization suffered from cognitive deviations and took some detours in practice, it clarified the relationship between Vietnam's socialist cause and industrialization, identifying the path of industrialization as the decisive factor for the victory of the Vietnamese socialist revolution and the sole path to escape backwardness. Generally speaking, during this period, the CPV's understanding of modernization was primarily focused on industrialization.
(2) The Major Turning Point Stage (1986–1996): Shifting from "Industrialization" to "Industrialization and Modernization"
During this period, the CPV continuously deepened its understanding of industrialization and modernization, proposing that "industrialization must go hand in hand with modernization," thus opening a new period of exploring a modernization path suited to Vietnam's national conditions. During this time, the CPV rationalized the internal connection between "industrialization" and "modernization," steering Vietnam's industrialization onto a new track of modernization.
The CPV believed, first, that socio-economic progress and the strengthening of cooperation with other countries and international organizations laid a solid foundation for Vietnam to further advance industrialization and modernization. Second, industrialization and modernization were the essential paths for Vietnam to escape backwardness, maintain political and social stability, defend sovereignty, and adhere to the socialist direction of development. The essence of industrialization was to build the material and technical foundation of socialism; it was not simply a matter of increasing the proportion of industry in Gross National Product or its growth rate, but a process of structural transformation related to fundamental technological innovation, laying the foundation for rapid, efficient, and sustainable growth across the entire national economy. Finally, combining the concepts of industrialization and modernization was an inevitable requirement of the new stage of development. Industrialization in the new stage "must not only develop industry but also, in accordance with the requirements of technological progress, truly realize structural transformation across all sectors, fields, and the entire national economy; it must not only pass through the developmental steps of mechanization, automation, and informatization in sequence but also simultaneously integrate achievements from multiple fields and possess cutting-edge technology realized through 'taking shortcuts'; it must not only apply advanced technology but also be adept at utilizing and modernizing traditional technologies..." Therefore, "industrialization must go hand in hand with modernization" was the internal requirement and inevitable trend of industrialization in the new stage. On one hand, this indicated that Vietnam's reality of having a low level of industrialization dictated the need to continue strengthening industrialization to promote modernization; industrialization remained the key content of modernization in the new stage. On the other hand, the requirement to combine sequential development steps with the opportunity to "take shortcuts" dictated that cutting-edge modern technology must be used to lead industrialization forward. To avoid understanding industrialization and modernization as two independent entities, the CPV Central Committee eventually decided to change the phrasing from "industrialization and modernization" to "industrialization, modernization." [3]
Resolution No. 07, discussed and adopted at the 7th Plenary Session of the 7th CPV Central Committee, provided a detailed explanation of the conceptual connotations of Vietnamese industrialization and modernization. The resolution stated: "Industrialization and modernization is a process of fundamental and comprehensive transformation. The entire transformation is built on the basis of industrial development and scientific and technological progress, specifically manifested in the transformation of production, business, service, and management activities in the economy and society from relying mainly on manual labor to the widespread use of advanced and modern technology, tools, and methods, thereby increasing social labor productivity." The resolution determined that the long-term goal of Vietnam's industrialization and modernization was "to build the country into an industrial nation with a modern material and technical foundation, a rational economic structure, advanced relations of production consistent with the level of development of productive forces, high material and spiritual living standards, stable national defense and security, and to be a country of wealthy people, a strong nation, and a fair and civilized society." Furthermore, the resolution clarified the nature and direction of Vietnam's industrialization and modernization, stating that it "must have a socialist orientation."
(3) The Rapid Advancement Stage (1996–Present): Implementing "Accelerated Speed and Increased Efficiency" for Modernization
Practice has proven that the CPV's adjustment strategy for Vietnamese modernization was timely and correct. It not only enabled Vietnam's economy and society to escape the quagmire of the 1980s crisis but also propelled Vietnamese modernization into a new era.
From 1996 to the present, the CPV has engaged in continuous exploration of how to achieve increased speed and efficiency in Vietnam's modernization. First, it constructed and improved the Vietnamese socialist-oriented market economy system, freeing Vietnam’s economy and society from the shackles of the bureaucratic centralized subsidization (planned economy) system, thereby accelerating the pace of industrialization and modernization. Second, to adapt to the trend of global economic integration, the CPV adopted policies for proactive, extensive, and deep integration into the international community, utilizing both domestic and international markets and resources. By organically combining "internal strength" with "external strength," it expanded the developmental space for industrialization and modernization. Finally, by developing the knowledge economy and implementing national digital transformation policies, Vietnam has seized the rare opportunities brought by the Fourth Industrial Revolution, using the lever of the technological revolution to accelerate leapfrog development in industrialization and modernization. The introduction and implementation of these policies have become effective paths for the "acceleration and efficiency increase" of Vietnamese modernization. According to statistics, Vietnam's GDP in 1996 was $24.66 billion, 1.75 times the $14.09 billion of 1985; by 2022, Vietnam's GDP reached $408.8 billion, 16.6 times that of 1996. In 2022, Vietnam's total import and export volume was $732.5 billion, 4.7 times that of 2010 and 39.8 times that of 1996. The WTO's World Trade Statistical Review 2020 showed that among the world's 50 largest commodity trading nations, Vietnam rose rapidly from 39th place in 2009 to 23rd in 2019.
In October 2022, the CPV held the 6th Plenary Session of the 13th Central Committee, which deliberated and adopted Resolution No. 29 "On Continuing to Promote National Industrialization and Modernization until 2030, with a Vision to 2045." This resolution summarized the achievements and lessons of the modernization cause during the 35 years of Đổi Mới (Renovation) and proposed visionary goals for 2030 and 2045. At the meeting, CPV General Secretary Nguyễn Phú Trọng further supplemented and developed the CPV's theory of modernization in light of the goals and tasks proposed by the 13th National Congress, as well as new changes in the national and international situation. Nguyễn Phú Trọng emphasized that industrialization and modernization is a fundamental and comprehensive process of transformation in which economic and social life increasingly relies on the development of industry and services, based on scientific and technological progress, reform and innovation, and the achievements of the Fourth Industrial Revolution. It is an important path for Vietnam to build an independent, autonomous, and self-reliant economy, achieve rapid and sustainable economic development, and become a high-income developed country. Continuing to promote the cause of national industrialization and modernization is an objective requirement of the new situation, the central task of the national socio-economic development strategy, and the common cause of all people and the entire political system. In the new era, Vietnam's industrialization and modernization must be people-centered and treat enterprises as the main actors; it must ensure that economic development goals are coordinated with the requirements of maintaining social fairness and progress, nurturing and promoting national cultural values, and protecting resources and the environment. It must be closely integrated with the process of urbanization, the construction of the "new countryside," the innovation of growth models, the adjustment of economic structures, and the transformation of the labor structure.
In summary, along with the progression of the practice of industrialization and modernization, the CPV's theoretical understanding of modernization has continuously deepened and advanced, thereby enriching and developing Vietnam’s theory of socialist construction.
II. Main Measures of the Communist Party of Vietnam in Promoting Modernization
Since the beginning of Doi Moi [5], the Communist Party of Vietnam (CPV) has drawn upon the lessons of its own modernization efforts while learning from the beneficial experiences of other nations, gradually carving out a path to modernization with Vietnamese characteristics.
(i) Timely shifting development concepts, seeking a balance between speed and efficiency within sustainable development
Prior to Doi Moi, the CPV suffered from the ideological malady of subjective impetuosity, leading to a one-sided pursuit of high speed that made "quick" and "vigorous" the keynote of Vietnam’s modernization concept during that period. After experiencing the severe socio-economic crises of the late 1970s and the first half of the 1980s, the CPV began a profound reflection on the concept of "speed above all." It proposed starting from the national conditions of the initial stage of the transition period, coordinating the speed, effectiveness, and sustainability of development, and gradually forming a new modernization concept of "rapid and sustainable development."
Throughout the 1990s, the CPV emphasized the need to coordinate economic growth with social progress, equity, cultural development, and environmental protection, focusing on the quality and results of development. Entering the new century, the CPV specifically discussed the relationship between rapid and sustainable development, emphasizing that the two must be coordinated and proceed in tandem. In 2021, the 13th CPV National Congress formally proposed from a systemic height the establishment and perfection of a "system for the sustainable development of the economy, politics, culture, society, and the environment," injecting new momentum into national modernization.
Protecting resources and the environment is a crucial measure for achieving sustainable development. Since Doi Moi, the CPV has repeatedly emphasized that great importance must be attached to the exploitation and protection of resources and the environment during industrialization and modernization, balancing immediate interests with long-term interests, and economic needs with national defense needs. Regarding the exploitation and utilization of resources, the CPV requires that all resources put into use be subject to taxation or rent; the state must specifically stipulate the rights and responsibilities of resource use and determine ownership to end the state of "ownerless" resources. For both renewable and non-renewable resources, equal emphasis must be placed on exploitation and protection to prevent resource depletion. In terms of environmental protection and pollution control, the CPV requires the state to promulgate relevant decrees, regularly inspect pollutant treatment, and conduct extensive environmental propaganda and education activities for citizens starting from childhood. Enterprises are required to process production waste and avoid causing pollution or noise in residential areas. Environmental protection and pollution control work must be combined with local mass movements, establishing a resource and environmental protection system from the central to the local levels, and extensively participating in the coordination activities of international and regional environmental organizations.
Constantly adjusting the economic structure and innovating the growth model are important ways to maintain rapid and sustainable development. Regarding the adjustment of the economic structure, since the 7th National Congress, the CPV has been committed to building a rational, modern, efficient, and sustainable "agriculture-industry-services" economic structure, carrying out synchronous structural adjustments in priority areas and key sectors. Regarding the innovation of the growth model, the CPV advocates a shift from primary reliance on extensive expansion toward an effective combination of extensive expansion and intensive development [6]. It promotes the development of the knowledge economy, develops competitive and high-value-added industry, agriculture, and high-tech services, and effectively participates in global production networks and global value chains.
(ii) Continuously refining development steps, effectively advancing industrialization and modernization
The 6th CPV National Congress clarified that Vietnam’s transition period to socialism is a long and complex process of struggle consisting of multiple development stages, requiring the advancement of modernization step-by-step with appropriate measures. The CPV believed that the primary task of modernization in the 1980s and 1990s was to stabilize the economy and society, emerge from the crisis, and lay a solid foundation for the next stage of modernization. By the time of the 8th National Congress in 1996, Vietnam’s economy and society had emerged from the crisis; the CPV thus pointed out that Vietnam’s modernization had entered a new stage of comprehensive and rapid advancement and proposed the goal of basically becoming an industrial country by 2020. However, by the 12th National Congress in 2016, the CPV realized that many indicators for becoming an industrial country by 2020 would be difficult to achieve; therefore, the political report removed the specific year and changed the phrasing to "striving to become an industrial country at an early date." Nonetheless, for the first time, the CPV provided an overall macro-level "three-step" design for the steps of national modernization: the first step creates the prerequisites for industrialization and modernization; the second step advances industrialization and modernization rapidly; and the third step improves the quality of industrialization and modernization.
In 2021, the CPV convened its 13th National Congress, supplementing the "three-step" strategic design for national industrialization and modernization. The CPV proposed advancing the nation’s modernization cause in sync with the cause of Doi Moi, striving to build Vietnam into a socialist-oriented developed country by the middle of the 21st century. Its specific goals are: by 2025, the 50th anniversary of the complete liberation of the South and the unification of the fatherland, to break out of the lower-middle-income bracket and become a developing country with modern-oriented industry; by 2030, the centenary of the founding of the Party, to become a developing country with modern industry and upper-middle income; and by 2045, the centenary of the founding of the Democratic Republic of Vietnam (now the Socialist Republic of Vietnam), to become a high-income developed country.
Since Doi Moi, the CPV has gradually overcome subjective and impetuous sentiments. Guided by the concept of rapid and sustainable development, it has continuously revised and perfected the design of the steps for industrialization and modernization based on the actual conditions of socio-economic development, making them both respectful of objective reality and strategically forward-looking, thereby effectively guiding the nation’s modernization.
(iii) Timely adjusting the strategic focus, reshaping a new path for Vietnamese modernization through the virtuous interaction between agriculture and industry
Due to a deviation from the fundamental principle of "seeking truth from facts" [7], the CPV failed for a period to identify the focal point of national modernization, mistakenly treating the "priority development of heavy industry" as the primary task, which resulted in the modernization cause falling into chaos. After the 6th National Congress, the CPV recognized that it must start from the reality that Vietnam remained a backward agricultural country, decisively making major adjustments to the previously irrational production and investment structures, establishing agricultural production as the "primary front," and shifting the focus of construction from the heavy industrial sector to the agricultural sector.
Agriculture as the "primary front" has two meanings: first, developing agriculture was the most important and urgent task in the entire national economic construction at that time; second, as the foundation of the national economy, agriculture must receive priority support in terms of production, investment, and the allocation of technical forces. The CPV believes that as the two main sectors of the national economy that influence and promote each other, the development of industry and agriculture must proceed in tandem and be closely integrated. The reality of being a backward agricultural country and the severe damage caused by long-term warfare resulted in an extremely weak industrial base and extreme poverty among the people. This determined that before Vietnam’s modernization could get on the right track, it first had to undergo an initial preparatory stage of relying on and utilizing agriculture to lay the foundation for industrial development—that is, placing the focal point of construction first on agriculture. Once the socio-economic situation stabilized and a certain material foundation existed, industrial construction would be strengthened, giving play to industry's role in leading agriculture and promoting agriculture through industry, creating a virtuous interaction between the two. By truly clarifying the relationship between agriculture and industry, Vietnam's modernization cause found the correct direction for steady progress.
Entering the 1990s, as the socio-economic situation improved, the CPV began to emphasize the role of industry in leading agriculture, stressing that while taking agricultural development as the top priority, the speed and proportion of industrial development should be increased, and the development of the service industry should be accelerated. The CPV specifically pointed out that Vietnamese agriculture must be understood in a broad sense: it is neither simple agriculture nor backward agriculture, but an agriculture that promotes and is promoted by industry and services, moving toward industrialization and modernization. To this end, the CPV required the vigorous promotion of mechanization, electrification, and irrigation in agricultural production, introducing modern technical equipment and processes into every link of production. Simultaneously, it actively adjusted the economic structure of agriculture and the countryside, encouraging the development of rural industry and services. The 7th CPV National Congress further integrated the development of agriculture and the rural economy with the cause of industrialization and modernization, proposing new requirements for achieving the industrialization and modernization of agriculture and the countryside, viewing it as the most important task in the national modernization cause.
Since Doi Moi, the CPV has consistently maintained agriculture’s strategic position in national modernization. In August 2008, the 7th Plenary Session of the 10th CPV Central Committee highlighted the issue of farmers and formed Special Resolution No. 26 on the "Three Rural Issues" (agriculture, rural areas, and farmers). The resolution emphasized that the "Three Rural Issues" hold a strategic position in national industrialization, modernization, and the cause of defending the fatherland, serving as the basis for maintaining sustainable socio-economic development, political stability, and national defense security; they must be resolved synchronously during the promotion of national industrialization and modernization. In June 2022, the 5th Plenary Session of the 13th CPV Central Committee made new deployments for promoting "Three Rural Issues" work under the new situation. The CPV required that national resources continue to be prioritized for investment in agriculture, farmers, and rural areas to ensure harmonious development between urban and rural areas and among regions, closely integrating agricultural development with the development of industry and services, and linking sustainable rural development with the urbanization process, moving toward "ecological agriculture, modern countryside, and civilized farmers." In October of the same year, the 6th Plenary Session of the 13th CPV Central Committee again clarified that the industrialization and modernization of agriculture and the countryside is the primary task of priority development in Vietnam’s national modernization strategy.
Starting from the renovation of thinking at the 6th National Congress and based on national conditions, the CPV established agriculture as the "primary front," completing the shift in the strategic focus of national modernization. Through the virtuous interaction between agriculture and industry, it has continuously promoted the industrialization and modernization of agriculture and the countryside, synchronously resolving the "Three Rural Issues" and reshaping a new path for Vietnamese modernization.
(iv) Using the technological revolution as a lever, striving for leapfrog development
In learning from the modernization experiences of developed countries, the CPV recognized that leapfrog development can only be achieved by combining adherence to synchronous development steps with seizing "shortcut" opportunities. Among these, closely following the trends and opportunities of the modern technological revolution, promoting domestic scientific and technological progress and the development of high-quality human resources, and facilitating the transformation and wide application of modern scientific results and new knowledge in all industries are the levers for achieving leapfrog development. To this end, the CPV has passed several special resolutions targeted at scientific and technological progress and education/training, establishing both as the "top national policy" and viewing them as the "key driving force" for national industrialization and modernization.
With the development of the technological revolution, the role of knowledge and innovation factors in enhancing national strength has grown. Entering the 21st century, the CPV began to value the major role of the knowledge economy in accelerating and enhancing the efficiency of industrialization and modernization; subsequently, new propositions and models for developing a knowledge economy appeared in Vietnam. The 9th CPV National Congress first proposed the development of a knowledge economy; the 10th Congress emphasized the policy of closely combining the promotion of industrialization and modernization with the development of the knowledge economy; and the 11th Congress identified "accelerating national industrialization and modernization in combination with developing the knowledge economy and protecting resources and the environment" as the first basic strategy for building the Vietnamese socialist state. The CPV believes that combining modernization with the knowledge economy is both a major trend in contemporary world development and a new requirement for Vietnamese national development in the new era—it is essentially the implementation of a knowledge-based modernization acceleration strategy. In 2021, the 13th CPV National Congress seized upon "digitalization," the latest achievement of the Fourth Industrial Revolution, and expanded the content of the knowledge economy. The 6th Plenary Session of the 13th Central Committee established the digital transformation of economy and society as a new way to accelerate and enhance the efficiency of national industrialization and modernization.
Based on the reality that the country is a backward developing nation, the CPV has learned from the advanced experience of developed countries, seized the trends and opportunities of the technological revolution, taken science, technology, knowledge, and high-quality human resources as the main drivers of industrialization and modernization, and used the development of the knowledge economy and the promotion of national digital transformation as acceleration levers to optimize the methodology and path for pursuing leapfrog development.
(v) Advancing the nation’s modernization cause through the development of a socialist-oriented market economy and international integration
Any mode of modernization must first resolve the problem of development resources—specifically the questions of "where will funding come from" and "how will it be allocated." From the outset, Vietnam’s modernization faced the test of these two major difficulties. Regarding sources of funding: because Vietnam had previously received massive aid from "socialist brother countries" such as the Soviet Union, it had filled the capital gap for national industrialization but had also developed a mindset of over-reliance on foreign aid. Regarding external economic and trade relations: at that time, Vietnam focused its energy primarily on interactions with members of the Council for Mutual Economic Assistance (COMECON) [8], leading to a monolithic external economic relationship and narrowing the channels for construction funds. Regarding resource allocation: due to the heavy influence of the Soviet planned economy model, resources were primarily deployed through administrative "allocation and remittance" methods. This unilaterally exaggerated the role of the state and the central plan while ignoring the functions of market mechanisms, such as commodity-money relations. Consequently, this formed a bureaucratically rigid mechanism of economic and administrative management, which severely fettered the potential of human, financial, and material resources. Through the lessons of its early failures in modernization, the Communist Party of Vietnam (CPV) gradually realized that to accumulate sufficient funds and allocate them efficiently, it must first properly handle major relationships such as "plan and market," "internal and external forces," and "economic independence and proactive international integration."
The CPV has continuously deepened its understanding of market economic laws, such as commodity-money relations, Gradually, it clarified that the market mechanism plays a "decisive role" in price formation and resource allocation; this is the most effective means to stimulate economic vitality and rapidly accumulate construction funds. From the 6th National Congress, which first proposed the proposition of developing a commodity economy, to the 9th National Congress, which further required the construction of a socialist-oriented market economy as the general model for national economic development during the transitional period, the CPV has gradually recognized that developing a socialist-oriented market economy is the only way for Vietnam to achieve socialist modernization.
In handling the relationship between "internal and external forces," the CPV emphasizes that "internal forces"—domestic resources—are the foundation and play the decisive role in development. "External forces"—external resources—are supplementary and play a vital role. Only by strengthening internal forces can economic independence be ensured and external forces be effectively attracted and utilized. Vietnam's modernization must be grounded in a reliance on internal forces; while practicing self-reliance and arduous struggle, it must actively seek foreign capital, technology, and management experience as supplementary resources.
In handling the relationship between "economic independence and proactive international integration," the CPV requires respecting and conforming to the trends of international economic integration. It insists on expanding opening-up, developing multilateral and diversified external economic relations, participating effectively in global production networks and value chains, and continuously improving the country's technical and managerial levels as well as its international competitiveness. Simultaneously, the CPV points out that while proactively integrating internationally, it must ensure the security, stability, and sustainable development of the national economy. It is necessary to maintain macroeconomic balances, guarantee the security of key sectors such as food and energy, and integrate into the international community more deeply and efficiently by enhancing the independence and autonomy of the national economy.
Since the beginning of Doi Moi [9], based on its shift in understanding regarding the source and allocation of modernization funds, the CPV has continuously deepened its grasp of the laws governing socialist economic construction. It has advanced the cause of national modernization by correctly applying the objective laws of the socialist-oriented market economy and by proactively and extensively integrating into the international community.
III. Significant Achievements of the Communist Party of Vietnam in Advancing Modernization
After years of arduous exploration, Vietnam’s modernization has achieved remarkable success. Not only has the country moved out of the ranks of low-income nations, but it has also been recognized by the United Nations as one of the first countries to achieve the Millennium Development Goals and has entered the ranks of countries with a relatively high Human Development Index (HDI). The achievements of Vietnam's modernization are manifested in the following aspects:
First, the Vietnamese economy has grown steadily, its scale has continuously expanded, and its major economic balances have been increasingly guaranteed. According to statistics, Vietnam's average GDP growth rate was approximately 4.8% in 1986–1990, 7.6% in 1991–2000, 6.6% in 2001–2010, and 6.2% in 2011–2020, making it one of the fastest-growing countries in the region and the world. The scale of the Vietnamese economy has continued to expand: GDP was $6.47 billion in 1990, $31.173 billion in 2000, $147.2 billion in 2010, $346.62 billion in 2020, and reached $408.8 billion in 2022. Major balances in the economy—such as accumulation-consumption, savings-investment, energy, food, and labor-employment—have been continuously secured, and the macroeconomic foundation has been increasingly consolidated. In 2020, Vietnam’s total GDP surpassed that of Singapore and Malaysia, making it the fourth-largest economy in ASEAN after Indonesia, Thailand, and the Philippines.
Second, the industrial structure, labor structure, and economic growth model have undergone positive transformations, with industry contributing increasingly to economic development. According to statistics, in 1988, agriculture accounted for as much as 46.8% of Vietnam’s GDP, while industry and services accounted for 23.9% and 29.7%, respectively. By 2010, the share of agriculture, forestry, and fisheries in GDP dropped to 18.9%, and further to 11.88% by 2022. Conversely, the proportion of industry, construction, and services rose from 81.1% in 2010 to 88.12% in 2022. Industry, construction, and services play a leading role in economic development and provide the primary contribution to economic growth. Simultaneously, the labor structure has undergone positive changes alongside the optimization of the industrial structure. The proportion of labor in agriculture, forestry, and fisheries dropped from 48.6% in 2010 to 34% in 2020; the proportion in industry and construction rose from 21.7% to 30.3%, and the service sector rose from 29.7% to approximately 35.7%. Economic growth has gradually reduced its dependence on natural resource extraction, raw material exports, cheap labor, and credit expansion, shifting instead toward reliance on the application of powerful science and technology, as well as reform and innovation. Within industry, the proportion of processing and manufacturing continues to rise, while the proportion of mining continues to decline. As Vietnam's industrial structure is continuously optimized, its global competitiveness is also rising. The 2020 Global Industrial Competitiveness rankings released by the United Nations Industrial Development Organization (UNIDO) showed that Vietnam's Competitive Industrial Performance (CIP) index ranked 38th globally and 4th among South Asian and Southeast Asian countries.
Third, the process of urbanization has accelerated, agriculture has achieved stable and sustainable development, and "New Rural Construction" has achieved positive results. Driven by industrialization and modernization, the pace of urbanization in Vietnam has quickened; the number of urban systems has grown rapidly, their scale has expanded, and their quality has gradually improved. As of November 2023, Vietnam's urbanization rate was approximately 42.6%. Agricultural production has shifted toward commercialization, concentration, and specialization closely linked to the market. The modernization of agriculture has laid a solid foundation for national food security, and its role is increasingly affirmed. Meanwhile, the rural economic structure has undergone a positive transformation, with the proportion of industry and services continuously increasing, and farmers' incomes and spiritual lives [10] constantly improving. As of July 2023, 6,022 out of 8,177 communes nationwide met New Rural Construction standards (73.65%, an increase of 11.3% compared to the end of 2020); 1,331 met "Advanced" New Rural standards, and 176 met "Model" New Rural standards. Furthermore, 263 district-level units in 58 provinces and centrally governed cities have completed New Rural Construction tasks and received certificates from the Prime Minister.
Finally, people's livelihoods have been guaranteed and improved, and society has become more civilized and progressive. The "socialist-oriented" nature of Vietnam's industrialization and modernization determines that its ultimate destination lies in the improvement of the living conditions of the masses. In 2020, Vietnam's per capita income was $3,512, more than 17 times higher than the per capita income in 1986 (less than $200). Simultaneously, Vietnam's poverty rate has declined year by year. According to statistics, following government standards, the poverty rate fell from 58% in 1993 to 5.8% in 2016; by 2020, the number of people living in poverty had decreased to 5 million. Calculated according to the 2022–2025 multidimensional poverty standards, the national multidimensional poverty rate in 2022 was 7.52%, and the total number of impoverished and relatively multidimensional impoverished households decreased to 1.9727 million. The contingent of teachers and the number of students in schools have increased continuously. In the 1986–1987 academic year, there were 19,000 university teachers and 126,600 college students; by 2018, these figures were 73,000 and 1.526 million, respectively. As of the 2019–2020 academic year, the number of primary and secondary school teachers nationwide reached 812,000, and the number of students reached 17.042 million. Citizens' awareness of self-protection and social security has increased. By the end of 2015, 12 million people participated in social insurance, about 10 million in unemployment insurance, and 75% in medical insurance. By 2020, the proportion of people participating in medical insurance reached 90.7%. The quality of medical and health care work has continuously improved. Average life expectancy was 65.2 years in 1991, 68.3 in 2000, and further increased to 73.7 in 2020. Pollution prevention and environmental protection have been proactively promoted. In 2020, the proportion of urban residents with access to clean water was approximately 90%, and for rural residents, it was 90.2%, a significant increase over 2015.
IV. Problems Faced by the Communist Party of Vietnam in Advancing Modernization
As an innovative exploration of localization and adaptation to the times, Vietnam’s modernization has gradually carved out a development path with Vietnamese characteristics. However, it is undeniable that while achieving brilliant success, Vietnam's modernization also faces many problems, prominently manifested in the following aspects:
First, while the economic scale continues to expand, the economic growth rate faces downward risks. A report by the Central Institute for Economic Management (CIEM) of Vietnam points out that, measured in ten-year cycles, the GDP growth rate shows a downward trend. In the decade from 1991 to 2000, the GDP growth rate was 7.34%; it dropped to 6.82% in 2001–2010 and to 6.2% in 2011–2020, lower than the targets set in the economic development strategies of those periods. Meanwhile, compared with neighboring South Korea and China, Vietnam’s economic growth has lagged behind in terms of duration and magnitude. Since 1990, the period of highest growth for Vietnam was the five years from 1991 to 1995, with an average annual growth rate of 8.21%. In contrast, South Korea achieved an average annual GDP growth rate of 9.58% during the thirty years from 1960 to 1990, and China’s average annual GDP growth rate was as high as 10.02% during the thirty years from 1977 to 2007.
Second, the internal force of the Vietnamese economy is still relatively weak, with a heavy dependence on foreign investment and low efficiency in the utilization of that investment. The Hinrich Foundation, a global trade consultancy, believes that Vietnam has currently formed an "FDI-led" economic model, with very high dependence on foreign capital and international markets. According to statistics, as of February 2023, there were 141 countries and regions investing in Vietnam, with a total registered capital of nearly $440 billion. In 2022, in Vietnam's traditional advantageous industries such as textiles and garments, leather, and footwear, the contribution of foreign direct investment (FDI) exceeded 60%; in the electronics and computer industries, the FDI contribution reached 100%. Export turnover from foreign-invested enterprises accounts for three-quarters of Vietnam's total exports. Vietnam's trade surplus is almost entirely generated by foreign capital, while domestic enterprises have remained in a state of huge trade deficit. Furthermore, close links have not yet been formed between domestic enterprises and FDI enterprises, particularly in important industries like electronics and information technology. This negatively impacts the desire of local Vietnamese enterprises to improve production and management levels through technology transfer and prevents foreign direct investment in Vietnam from creating a chain effect.
Third, the independence and autonomy of Vietnamese industry remains low; its development lacks stability, industrial added value is low, and it has not yet deeply integrated into regional and global value chains. Currently, Vietnam's industrial development is in a transitional period, ascending from the first stage to the second stage, and the progress of this transformation is relatively slow. Industrial technology absorption capacity and production management levels remain limited. Because many raw materials and components for domestic industrial development cannot yet be produced autonomously and still require large-scale imports, the independence and stability of Vietnam's industrial development are undermined. At the same time, the quality of Vietnamese enterprises' participation in global value chains is low; they are essentially situated in the processing and assembly segments at the lowest end of the value chain, where profits are only 5-10%. Furthermore, Vietnamese government reports indicate that the localization rate [11] of products in many industrial sectors is very low. For example, in 2020, the average localization rate for nine-seater private cars in Vietnam was only 7-10%, far below the planned target of 30-40%. Similarly, in the textile and footwear industries, the price of raw and auxiliary materials accounts for 68-75% of the value structure, yet their localization rate is only 40-45%. In electronics, information technology, telecommunications, specialized electronics, and high-tech industries, the localization rate is even lower, at 15% and 5% respectively.
Fourth, although State-Owned Enterprises (SOEs) are the core force of the state-owned economy, their leading and driving role in economic development is limited, and the domestic private economic sector has not yet become an important dynamic for promoting the development of industrialization and modernization. The production and operation efficiency of many SOEs is poor and their contribution rate is low, which is disproportionate to the resources invested by the state; some are even heavily in debt and suffer massive losses. Simultaneously, the reform of management mechanisms for SOEs is slow, efficiency is low, and openness and transparency have not yet met the requirements of international norms. Most of Vietnam's private economy consists of small-scale individual households; whether in terms of technical level, management level, financial capacity, or product quality and competitiveness, they remain at a low level and cannot meet the requirements of regional and global value chains. Meanwhile, the laws, mechanisms, and policies encouraging the development of the private economy lack synchronization and still contain many deficiencies and flaws.
Beyond this, the Communist Party of Vietnam (CPV) is itself soberly aware that its understanding of industrialization and modernization still contains many defects characterized by ambiguity or impracticality. Particularly in the fields of science, technology, and innovation, high-quality human resources are extremely scarce, and there are many inadequacies in systems, mechanisms, and policies. The system of standards and norms is backward, making it difficult to incentivize the development and application of science and technology. The aforementioned problems and challenges indicate that Vietnam’s modernization still has a long way to go.
In summary, although Vietnam's modernization cause still faces many problems, its development prospects remain worth anticipating. Similar to China's modernization, Vietnam's modernization has not only achieved a breakthrough from the traditional Soviet model of modernization but has also shattered the myth that "modernization equals Westernization" through its principled requirement that industrialization and modernization must be "socialist-oriented" [12]. As an exploratory practice of localization and adaptation to the times, Vietnam’s modernization construction exhibits uniqueness while enriching the experience of modernization construction in world socialist countries. Recently, the joint statement by the top leaders of the two parties and countries of China and Vietnam on "deepening the China-Vietnam comprehensive strategic cooperative partnership and building a China-Vietnam community with a shared future [13] that carries strategic significance" has pushed China-Vietnam relations into a new stage of development. This will surely serve as a favorable opportunity to promote the vigorous development of the modernization causes of both countries.