Alex Huynh is an Australian-Vietnamese entrepreneur and the CEO of Stag, a wealth management and financial education platform that helps individuals invest in mutual funds and ETFs. He has worked at global financial institutions including State Street and National Australia Bank, and previously at Phoenix Holdings, a Vietnam-based family office with investments spanning brands such as McDonald’s, 7-Eleven, and Vietcap—one of Vietnam’s leading investment banks.
Vietnam is one of the fastest-growing countries in the world. Over the past year, the country has undergone its most significant reforms in decades, including a major leadership reshuffle within the Politburo. These changes will play a critical role in shaping Vietnam’s economic direction over the next 5–10 years.
This might not be a popular view—and perhaps even a controversial one—but I genuinely like Vietnam’s new leadership, at least from an economic growth perspective.
Over the past few days, discussions have centered around Politburo voting and the next generation of leaders. From what we can see, the overall setup is unlikely to change dramatically. For me, that’s actually a good thing.
Why? Because I’m impressed by what the Vietnamese government has managed to change over the past 12 months.
No one likes change—especially deep, structural change. It creates discomfort, uncertainty, and resistance.
But at the same time, it opens up room for real growth. Below are a few changes I believe could be pivotal for Vietnam’s next phase of economic development.
1. Resolution 68: Growth led by private enterprises
Resolution 68 clearly signals that Vietnam’s growth will be driven by the private sector. This is a meaningful shift.
For many years, Vietnam favored state-led enterprises, but the results have been mixed at best. Vinashin is a well-known example—not only did it fail to deliver, it also crowded out private companies that could have taken on those projects and executed them more efficiently.
A strong counterexample is Sơn Hải Group, which has been building roads at record speed with clear quality guarantees. This demonstrates that private enterprises can deliver faster, better, and more efficiently when given the opportunity.
Admitting that state-owned enterprises have not always been effective—and allowing private companies to lead instead—takes courage. But it’s a necessary step if Vietnam wants sustainable, long-term growth.
2. Bringing the informal economy into the formal system
This move is understandably controversial.
Household businesses are estimated to account for around 20–30% of Vietnam’s GDP, yet tax collection from this group has historically been modest. Many of these businesses rely heavily on cash, lack technology, and operate outside formal systems—making them difficult to scale and inefficient over time.
The government is now pushing these businesses to adopt POS systems, digital payments, and transparent accounting connected directly to tax authorities. Yes, this means higher taxes, and that’s painful. But it also puts them on equal footing with formal enterprises that have followed the rules for years.
The same applies to online sellers being brought into the official system. Everyone participating in the economy should operate under the same framework and have access to the same infrastructure and technology. That’s how a transparent, scalable, and efficient market is built.
3. Tighter regulations
For many years, market standards in Vietnam were relatively loose. In some sectors, this created serious distortions in competition.
Take food supplements and nutrition products as an example. Weak inspection and enforcement allowed some producers and importers to sell low-quality products at high prices. Margins were attractive—but often at the cost of public health. More importantly, this environment discourages businesses from doing the right thing. When cutting corners is rewarded, companies that invest in quality, compliance, and innovation struggle to compete on price.
A market where low-quality products can survive—and even thrive—naturally erodes motivation to improve. Over time, innovation slows, trust deteriorates, and the entire ecosystem becomes fragile.
This is why the government’s recent crackdown on bad actors matters. By removing players that rely on regulatory loopholes, tax evasion, or misleading practices, space is created for serious businesses to grow.
A clear example is the shutdown of the Mailisa cosmetics chain, which was found to be misrepresenting product origins—labeling goods sourced from China as coming from Hong Kong to receive more favorable import treatment and gain consumer trust. Vietnamese consumers are particularly sensitive to their country of origin, and exploiting that sensitivity undermines market integrity.
Cracking down on tax evasion, origin fraud, and low-quality production is uncomfortable in the short term—but essential if Vietnam wants a fair and competitive market in the long run.
Direction matters…
Beyond this, there are many other reforms worth mentioning: provincial mergers, the rollout of electronic national IDs, and the broader digitalization of government processes. These are complex, high-friction reforms. They are hard to execute, and honestly, execution so far has not been flawless.
But direction matters more than perfection.
Any deep structural reform will come with hiccups, resistance, and short-term inefficiencies. What matters most is that the country is moving in the right direction. If the direction is right, things tend to fall into place over time.
I may be optimistic, but I genuinely believe Vietnam’s economy can accelerate meaningfully over the next five years under the 2026–2031 leadership term. Vietnam’s golden population period is nearing its end—most of the workforce is already 30+, and birth rates are at record lows.
That likely gives us a 10-year window to make a real difference if Vietnam wants to move closer to developed-market status.
From what I see today, I like where we’re heading.
