The main focus of this paper is the development of Vietnam’s manufacturing sector since the Doi
Moi economic reforms of 1986. However, in order to have a contextual grasp of industrial growth in
Vietnam, it is necessary to have a solid understanding of the country’s economic reform process in its
entirety. This will be done by analysing the fundamental conceptual changes around industrialisation
concepts from the 1950s to the mid-1980s and the transformation of Vietnam’s industries since the
start of the reform process in 1986.

This transformation was marked by the growth of various import-substitution industries such as
electricity, mechanics and oil and gas; and the boom of competitive export-oriented sectors such as
electronics, leather goods, wood products, food processing, garments and textiles, as well as the
seemingly non-competitive automobile manufacturing sector. The Paper will engage with the role of
various entities as engines of growth, focusing on State-Owned Enterprises (SOEs), the private sector,
and industrial zones; as well as international integration, particularly the contributions of foreign
trade, foreign direct investments (FDI) and Official Development Assistance (ODA). The final section will
assess prospects for the further development of the Vietnamese economy.

Report by Brenthurst Foundation