Asian Industrial Policy Demands New State Capabilities

Asian nations, particularly Vietnam, are facing the challenge of rebuilding state capabilities to effectively promote industrial policy amidst remarkable economic growth. For decades, Vietnam, under its one-party system, has pursued cautious economic reforms, maintaining high growth rates, especially in manufacturing. However, external environmental changes, such as the restructuring of global supply chains, rising geopolitical tensions, and rapid technological innovation, are questioning the traditional way of state governance. In this context, industrial policy in Asian countries is no longer limited to promoting economic development but now demands advanced state capabilities to adapt to changes and seize new opportunities. This includes the ability to accurately analyze market trends, guide strategic investments, and flexibly respond to international regulations and standards. To address these changes, the Vietnamese government needs to focus on improving administrative capacity, nurturing human resources, and building an ecosystem that fosters innovation. Particularly, within the political context of a one-party system, how to achieve efficient and adaptive state governance will be key to future sustainable growth.