Vietnam Unveils New Regional Development Approach, Reorganizing Economic Space and Driving Digitization

The Politburo of the Communist Party of Vietnam has signed and promulgated Resolution No. 27-NQ/TW on developing regions and organizing national development space in the new period. This marks a strategic shift for Vietnam, moving away from development models constrained by administrative boundaries towards a more integrated and sustainable growth path. The resolution emphasizes enhanced regional linkages and greater leverage of local potential and advantages. Against the backdrop of administrative unit reorganization and the implementation of a two-tier local government model, it calls for "strong innovation" in development and growth models, tasking Party committees, organizations, and authorities at all levels to create, unlock, and mobilize all available resources. Internal resources are identified as "fundamental, strategic, long-term, and decisive," with external resources to be effectively combined to promote rapid and sustainable development and build an "independent and self-reliant economy." This signals Vietnam's intent to bolster economic autonomy amidst geopolitical uncertainties. Resolution 27 stipulates five major shifts in development: from development based on administrative boundaries to "functional spatial organization and stronger regional linkages"; from relying on available resources to "creating, unlocking, mobilizing, and activating all resources"; from fragmented, single-pole development to "multi-layered, multi-polar development, with growth poles and economic corridors serving as key drivers"; from traditional growth models to "digital, green, data-driven, and circular economies"; and from formal regional linkages to "substantive coordination mechanisms based on joint decision-making, joint investment, shared responsibility, and shared benefits." Regional development is framed as a methodology for "organizing national growth, reorganizing development space, and allocating resources" to enhance national competitiveness. It calls for the "unified reorganization of national development space" by clearly defining the role, position, functions, advantages, identity, and development mission of each region within the overall sustainable national development framework. Emphasis will be placed on linkages, complementarity, and spillover effects among regions, growth poles, economic corridors, urban clusters, and economic centers. Notably, the resolution stresses transformation towards digital, green, circular, and data-driven economies. Science, technology, innovation, and digital transformation are identified as the "main driving forces" and a cross-cutting axis for regional development. Priority will be given to investments in strategic, digital, and technology infrastructure, as well as infrastructure supporting green transition and energy transition. These are expected to be key drivers for economic breakthroughs, expansion of development space, and resource unlocking. By 2045, the resolution envisions regions operating on digital, green, data-driven, and circular economic models, supported by synchronized, smart, green, safe, resilient, and seamlessly connected infrastructure. This resolution is expected to contribute to the broader goal of building Vietnam into a "developed, high-income country" steadily advancing toward socialism. Source: Bao Chinh Phu