Article 2:
ACCUMULATING INHERENT PARADOXES: VIETNAM’S PATH FORWARD?
Đinh Hoàng Thắng
Fellow, The Caux Round Table
Summary: Vietnam faces five inherent paradoxes: rapid development with weak institutional foundations; aggressive globalization but low domestic resilience; a dynamic society with slow governance reform; growth reliant on external forces while internal capacity is fragile; and high aspirations with inefficient allocation of resources. Three development scenarios are outlined: maintaining the status quo, controlled reform, or disruptive instability. Controlled reform is deemed most feasible, requiring political consensus, institutional restructuring, and enhanced governance capacity. Lessons from other countries highlight the importance of timely reforms but with stability alongside structural transformation. Central to this scenario is system capacity for self-adjustment: identifying problems, learning, correcting mistakes, and generating new momentum. Risks implicit in the disruptive scenario include trust crises, social fragmentation, and geopolitical pressures. Vietnam must pursue a new development trajectory that balances stability with courageous reform, aiming for sustainable growth having deeper and broader social impact.
1. Five Internal Paradoxes of Vietnam
Vietnam’s current political–economic system is confronting five profound internal paradoxes that reflect tensions between tradition and modernization.
The first paradox lies in the divide between economics and politics: the economy functions under a socialist-oriented market mechanism, sustaining GDP growth of 6–7% over decades and attracting massive FDI from corporations such as Samsung, Intel, and Foxconn. Yet the political system maintains tight control through the Communist Party, with strategic decisions such as State Owned Enterprise leadership appointments and media censorship, creating a misalignment between economic openness and ideological constraints.
The second paradox emerges from overusing the slogan of “renovation,” repeated again and again since the 1986 Đổi Mới reforms, while substantive reform progresses slowly. Vietnam has integrated into the WTO, CPTPP, and EVFTA, but core sectors such as land, State Owned Enterprise restructuring (accounting for roughly 30% of GDP), and administrative reform remain sluggish. Despite Party Congress XIII calling for breaking the “ask–give mechanism”, bureaucratic procedures and corruption still hinder progress, making reform largely superficial.
Third, traditional ideological legitimacy—Marxism–Leninism and Ho Chi Minh Thought—has weakened, especially among younger generations exposed to social media and global values. In contrast, pragmatic legitimacy based on stability and economic growth has become central, with the motto “stability above all” shaping decisions from COVID-19 management to growth-focused policies despite inflation.
The fourth paradox is sustaining a powerful state apparatus with dense security and media control when society’s trust is longer an absolute. Scandals such as Formosa, Việt Á, and the Trịnh Xuân Thanh case eroded public confidence, while PAPI surveys indicate declining satisfaction with local authorities, reflecting a widening gap between the state and citizens.
Lastly, internal competition among senior cadres and officials has intensified, with factions vying for key positions in the Politburo and Central Committee. The upcoming 14th Party Congress is expected to witness behind-the-scenes struggles for top leadership, where economic interests intertwine with power, leading to the allocation of state resources through factional bargaining.
Together, these five paradoxes create a pattern of “accumulative tension”—gradual layering of contradictions beneath a seemingly stable surface. Compared with Eastern Europe before 1989, Vietnam shows similar dynamics: partial marketization generating inequality, ideological decline replaced by pragmatism, strong power but weakening trust, and factional infighting within Party and State leadership. Vietnam has avoided sudden collapse thanks to sustained growth and stronger control, but if this “accumulation” continues, similar abrupt ruptures may occur unless deep reform releases the pressure.
2. Three Future Development Scenarios
From a political–philosophical perspective, three developmental scenarios for Vietnam after the 14th Party Congress reflect tension between static stability (Aristotle’s stasis) and dialectical evolution (Hegel’s synthesis) where confronting internal contradictions may lead either to structural renewal or to collapse.
Scenario one would be to reinforce the current model which would maintain comprehensive Communist Party control while harmonizing market economics with such centralized authority. Advantages include social stability, avoidance of Soviet-style collapse, and continued 6–7% GDP growth similar to China under Xi Jinping, ensuring FDI attraction and regional stability. However, internal contradictions would continue to accumulate: outdated ideology would collide with market reality, corruption would exploit bureaucratic weaknesses, inequality would rise (Gini increasing from 0.35 to 0.43 in 15 years), and societal trust would erode, risking eventual rupture within 10–15 years. Estimated probability of implementation: 65%.
Scenario two – controlled reform – would aim to establish a new developmental orientation through internal pluralization within the Party, reduce State Owned Enterprise dominance, reform land ownership opportunities, and enhance transparency. Following Hegel, this would implement synthesis—transforming the inconsistency of ideological orthodoxy with free-market practices into a higher form of supervised democratic governance. Benefits would include productivity gains, restored trust, and a transformation similar to Đổi Mới 1986 or Deng Xiaoping’s reforms, while avoiding Gorbachev-style destabilization. Risks would include factional conflict and loss of central control. Estimated probability of implementation: 20%.
Scenario three – disorder and instability – would see an increase in ideological decline, social distrust, fragmentation of authority, inflation, and global shocks. This Marxian crisis would resemble Eastern Europe 1989—potentially enabling democratic restructuring but risking severe chaos, economic collapse, and foreign intervention. Estimated probability of implementation: 15%.
In conclusion, scenario one has the advantage but would bring on pressure; scenario two is most sustainable yet difficult; scenario three is dangerous and must be prevented.
3. Assessing the Controlled Reform Scenario
Vietnam stands at a strategic crossroads amid socio-economic transformation and geopolitical pressures. Controlled reform emerges as a feasible path to create a new developmental orientation—reducing personalized power, strengthening rule of law, enhancing political adaptability, and cautiously expanding civic space. This would not be a rupture breaking away from the revolution but an evolutionary renewal leveraging existing solid accomplishments.
Reducing personalized leadership means shifting from individual-centric authority to more collective, professional governance and to transparent merit-based leadership selection.
Strengthening rule of law requires greater judicial independence and legal accountability across all state institutions, including the ruling party, thereby curbing abuse of power and fostering investor confidence. Enhancing self-adjusting capacity involves creating internal feedback mechanisms, dialogues with experts, and independent policy research. Controlled civic space expansion allows NGOs, social organizations, and intellectual forums to operate within legal frameworks, turning social input into governance assets.
Though difficult and requiring leadership consensus, this pathway is more sustainable than merely reinforcing the old model. Global lessons show controlled reform (Singapore, South Korea) can transition authoritarian modernizing systems into effective democratic governance. A phased 5–10 year roadmap is proposed—from legal groundwork and pilot reforms, to institutional oversight strengthening, to digital transparency integration. With decisive leadership and international cooperation, Vietnam can position itself as a new Southeast Asian development model.
A very appropriate equilibrium development model for Vietnam to emulate is Singapore. Lee Kwan Yew and his People’s Action Party followed a blended approach to development using both dominant government priority setting and regulation and private sector self-help in education and entrepreneurship. The PAP, with over 60% support from voting citizens and so majority control of the national assembly, built a strong state – no chewing gum allowed! – but it provided cultural, social, and market spaces for individual initiatives to innovate and create wealth, social capitals and human capitals.
4. Lessons from “Brother Nations”
Vietnam is entering a decisive historical phase marked by economic growth alongside deepening paradoxes: rising inequality, environmental degradation, bureaucratic inertia, and trust erosion due to corruption scandals.
Lessons from Eastern Europe and China teach the danger of delaying political reform while crises deepen. In the late 1980s, regimes liberalized economically but suppressed political pluralism; accumulated tensions exploded, with Soviet Russia collapsing illustrating how rigidity destroys legitimacy.
China teaches that economic reform without governance modernization yields diminishing returns: while opening lifted millions from poverty, authoritarian rigidity, debt-driven overexpansion, youth unemployment, and overcentralization under Xi reveal vulnerability.
Vietnam shows parallels: strong growth but widening disparity, unresolved State Owned Enterprise inefficiencies, real estate vulnerabilities, leadership factionalism, and weakening institutional competitiveness. Therefore, Vietnam should: (1) institutionalize leadership succession transparency and competency criteria; (2) strengthen judicial independence and digital transparency to fight corruption; (3) cautiously expand civil society to create legitimate policy feedback channels; (4) invest in adaptive resilience with early-warning governance tools. These steps combine urgency with pragmatism, transforming paradox into opportunity.
5. The Role of Self-Adjustment Capacity
Vietnam’s central question is no longer merely growth versus stability, but whether its political system can self-adjust to survive historically. Systems endure only when they do not consider themselves absolute. True strength lies not in coercion but in acknowledging limits, listening to warning signals, and adapting proactively.
Today, legitimacy must evolve beyond economic performance toward inclusive development, transparent governance, and a renewed “social contract” recognizing citizens as active participants, not simply governed subjects.
A viable future requires lawful constraints on power, acceptance of criticism as constructive, and recognition of civil society as a governance partner. A system capable of self-adjustment transforms pressure into reform momentum, prevents accumulated paradoxes from turning into crises and instead shapes a new direction for developmental.
6. Risks of the Instability Scenario
Vietnam may still fall into instability if it loses the capacity to adapt. Accumulated contradictions could then easily trigger combined economic, political, and social crises—slowing growth, financial vulnerabilities, unemployment, persistent corruption scandals, leadership fragmentation, and declining public trust.
External shocks—US–China rivalry, global recession, geopolitical turbulence—could intensify internal fragility, shifting away from controlling tensions to systemic disintegration. Eastern Europe’s rapid collapse illustrates the danger of delayed reform. Vietnam’s stronger control capacity offers resilience, but resilience is not immunity. If social trust weakens, inequality deepens, leadership rivalries intensify, dialogue narrows, and international confidence erodes, instability becomes a real, not hypothetical, threat.
7. Building a New Developmental Orientation for Vietnam
The heart of the matter is not GDP growth, but the duties that come with political power: securing national safety, economic prosperity, human dignity, and the future of the generations to come. Power must serve the nation, not itself. Vietnam needs a developmental orientation that balances stability with controlled reform, modern governance with societal participation, and state strength with community empowerment. Maintaining the current model would preserve stability in the short term but risks medium-term erosion of legitimacy; choosing the path of instability, conversely, would be economically and socially devastating.
Thus, the most reasonable—and most difficult—path is controlled reform: strengthening rule of law, improving governance, cautiously expanding civic space, institutionalizing leadership succession, and building trust-based legitimacy. If chosen after the 14th Congress, Vietnam can thus transform its accumulated contradictions into a foundation for renewed legitimacy, avoiding Eastern Europe’s collapse and China’s fragility, and emerging as a distinctive Southeast Asian model: stable yet adaptive, globally integrated yet culturally grounded, powerful yet accountable, and above all—governance that truly serves the Vietnamese people.
Written December 2025 for the Caux Round Table which, in 1986, was founded in Caux, Switzerland; is incorporated in the United States of America; and has its Administrative Office in, St Paul, Minnesota