Viet Nam is in the midst of once-in-a-generation institutional and administrative changes, so this is the perfect time to take stock of institutions, those advancing and functioning well, and those that could be a drag on the country’s progress as it strives to become a high-income country by 2045. The study, Viet Nam 2045—Breaking Through: Institutions for a High-Income Future, was published in May.

As we wrote in a study from 15 years earlier, institutions are not buildings or organizations, they are the rules by which citizens, firms, and the state interact. For this year’s Breaking Through we grouped the institutions by the roles they play in creating markets and making markets work better. All were examined for their role in fostering growth, since growth is essential to advance to high-income status. Viet Nam’s GNI per capita would need to more than triple what it is now to achieve this goal. The report argued that much of its past successes are attributable to institutional reforms and that more would be needed to accelerate growth.

In addition to the public launch event, which featured a panel discussion of Vietnamese scholars, we were pleased to present the study at Fulbright University Viet Nam and engage with students and faculty there. (VTV4 coverage of the launch is here at 12:07 and a Viet Nam News story here.)

While many of Viet Nam’s current reforms are administrative in nature—merging provinces, eliminating districts, merging ministries—there is also a marked shift in emphasis on private sector growth. Indeed, a private sector empowered by institutions that reduce their transactions costs in dealing with each other and the state could make or break Viet Nam’s rapid high-income ambitions.