Vietnam is setting its sights on two ambitious milestones: achieving high-income status by 2045 and reaching net-zero emissions by 2050.

This dual ambition raises a critical question: Can Vietnam accelerate economic growth while simultaneously protecting the planet?

In a recent episode of You Don't Know Vietnam, Michaela Baur, Country Director of GIZ Vietnam, explains why this approach is not just a choice, but a strategic necessity that could help Vietnam become a global blueprint.

Vietnam's dual ambition

To Michaela, pursuing economic growth and emissions reduction in parallel rather than sequentially is an "ambitious but very smart" strategy.

While it may sound like a difficult balancing act, she argues that approaching the two goals separately would waste valuable time and resources. As Vietnam continues to grow rapidly, sustainability needs to be embedded into infrastructure, industry and innovation now - not later.

This dual approach is about more than just being green, it's a practical way to escape the "middle-income trap," where growth stalls as rising costs outpace innovation and productivity.

For a country with over 3,000 kilometres of coastline, this approach is essential. Failing to do so could reduce Vietnam’s economic output by as much as 12.5% due to climate threats like flooding and saltwater intrusion.

By harmonising the economy with ecology today, Vietnam is making a solid investment in a stable, high-income future.

A defining period for Vietnam

Michaela emphasises that this strategic choice is a "good investment in a green future," ensuring that major investments in infrastructure and innovation support long-term sustainable growth.

She believes the country is entering a defining period of transformation. Beyond policy changes, Vietnam has been undergoing major structural reform, including the merging of ministries and a reduction in the number of provincial administration levels.

But this shift is not just organisational, it also requires a fundamental shift in mindset towards a more agile, co-operative and service-oriented approach to governance.

Vietnam’s four pillars of reform

Supporting this transformation are four new resolutions focused on key areas that will shape Vietnam’s next decade of development:

• Private sector
• Science
• Legal reform
• International integration

Together, they share the same objective: building a stronger foundation for long-term and sustainable growth.

Designed to create momentum during a pivotal period for Vietnam, the reforms are helping innovation thrive through clearer legal frameworks and deeper international integration.

As they are “highly interwoven”, progress in one area will naturally strengthen the others, accelerating Vietnam’s wider transformation.

Challenges and nuances of co-operation

Achieving Vietnam’s ambitious vision depends on effective long-term co-operation. Michaela emphasises that meaningful progress requires patience.

She explains that the “early stages of formalisation” are often the most challenging, with uncertainty and complexity occasionally resulting in higher costs and slower progress.

To overcome these barriers, strong co-operation must be built on trust, cultural awareness, and respect for the local context. Michaela stresses the importance of maintaining an ‘eye-level’ approach when working in Vietnam:

“This [unique culture and history] is really something very special here and I think it takes really time to dig into that.”

“To not only talk about eye-level, but keep an eye-level in every situation.”

This means being fully open to the partner's situation and interests, rather than preaching how things should be done.

Can Vietnam become a global blueprint?

While the commitment to its 2045 and 2050 goals remains firm, the journey should be viewed as a continuous learning process.

Michaela hopes that over the next five years, these ambitions will "become much more concrete" and transition from planning to reality. 

If Vietnam succeeds in balancing economic growth with climate goals, it could become the blueprint for other nations facing the same challenge.