Thong Nhat Bicycle Company produces bicycles for domestic and export markets. Photo: Tran Viet/VNA

“Today, Vietnam is one of the most open economies in the world, with about half of the country’s GDP and every second job directly orindirectly depending on exports,” the WB said in its report, titled "Vietnam 2045: Trading up in a changing world – Pathways to a high-income future".

Building on its past success, Vietnam has set ambitious goals for the future, aiming to become a modern, high-income economy by 2045. This will require sustaining an annual per capita GDP growth of about 6% over the next two decades, according to the World Bank. Achieving this goal will depend on Vietnam’s ability to move up the value chain by advancing into higher-value-added manufacturing and services through investments in technology, skilled labor, and innovation.

The World Bank proposes a multi-pronged approach to unlock productivity growth, attract private investment, and upgrade participation in global value chains. Policy options include deepening regional trade integration; linking domestic enterprises to global supply chains; promoting skill- and technology-intensive manufacturing and high-value-added services; and transitioning to low-carbon, climate-resilient production.