Vietnam’s economic transformation over the past four decades is one of the most striking success stories of the modern era. Once among the poorest nations on earth, where an overwhelming majority of the population lived in severe poverty, Vietnam has ascended into a dynamic emerging economy with sustained growth, deep global integration, and markedly improved living standards. This remarkable journey is the subject of the documentary Vietnam – Beating Poverty with Market Economy, directed by Rainer Zitelmann and produced with Tomasz Agencki. The film has won international recognition, including the “Best International Documentary” award at the ANTHEM Film Festival in Palm Springs in 2025.
From Poverty to Prosperity: The Story of Transformation
In the early 1990s, Vietnam was still deeply impoverished. According to the documentary and World Bank data, roughly 80 % of the population lived below the poverty line in 1990, and annual per capita income was extremely low — even lower than that of some of the poorest African nations at the time.
The film chronicles how Vietnam, after decades of devastation from war and centrally planned economic policies that failed to deliver prosperity, began a process of deep economic reform. This period, known as Đổi Mới — meaning “renovation” — was launched in 1986 and gradually shifted economic policy toward market-oriented principles.
These reforms did not abandon Vietnam’s political system, which remains a one-party state; rather, they fundamentally restructured the economy. Private property rights were expanded, state control over production loosened, and the country opened its doors to foreign trade and investment. Legal reforms enabled private enterprise, and entrepreneurial activity that had previously been driven underground was progressively legitimized.
What Drove the Miracle?
The documentary emphasizes several core drivers behind Vietnam’s extraordinary economic rise:
- Market Reforms and Economic Openness
Vietnam’s shift toward market mechanisms unleashed productivity and investment. The state reduced price controls, moved away from collectivized agriculture toward household land use and private incentive systems, and embraced foreign direct investment. Between 1990 and the present, Vietnam’s GDP growth averaged near global top-tier rates, frequently surpassing 7 % annually.
- Integration into the Global Economy
Vietnam progressively integrated with the global trading system. Its entry into the World Trade Organization (WTO), the negotiation of multiple free-trade agreements with partners including the United States and the EU, and participation in regional economic frameworks attracted capital, technology, and export opportunities. Trade volumes expanded dramatically, especially with the United States, where bilateral commerce grew from negligible levels to tens of billions of dollars annually.
- Cultural Attitudes Toward Entrepreneurship
A striking theme in the film is the shift in cultural attitudes toward business and wealth. Unlike many countries where wealth is viewed with suspicion or envy, in Vietnam entrepreneurs are increasingly respected as contributors to national progress. Interviews with Vietnamese business figures, such as bakery chain founder Kao Seu Luc and other successful local entrepreneurs, illustrate how personal initiative and private enterprise have become central to the national narrative.
- Self-Reflection Instead of Blame
Despite the destructiveness of a century of warfare — against colonial powers and in the Vietnam War — the Vietnamese people and leadership did not attribute ongoing poverty to external actors. Instead, as shown in the documentary, there was a deliberate choice to examine internal structural barriers and policy failures, and to adopt reforms accordingly. This willingness to self-critique and adapt is presented as a key psychological and cultural factor enabling change.
Real Outcomes: Poverty Decline and Economic Growth
The results of Vietnam’s reforms have been extraordinary and sustained:
- Poverty Reduction: By the early 2020s, the proportion of people living in severe poverty had fallen to approximately 3 % — a dramatic drop from the 80 % level of 1990.
- Middle-Income Economy: Vietnam today ranks among the world’s fastest-growing economies, with a GDP that has expanded multiple times over since the early reform era.
- Diverse Private Sector: The country has seen the rise of private enterprises across sectors, from food production and manufacturing to services and technology. These businesses are often led by individuals whose own life stories reflect the broader narrative of opportunity.
Lessons and Takeaways
The documentary draws broader lessons about economic development that resonate beyond the Vietnamese context:
- Market reforms, not aid, drive long-term poverty reduction. The Vietnamese experience suggests that enabling economic freedom and entrepreneurial activity is far more effective for lifting populations out of poverty than reliance on external development assistance.
- Globalization and investment create opportunity. Active integration into global markets — including through trade agreements and foreign investment — expands economic horizons and accelerates growth.
- Perceptions of wealth matter. A society that views business success and wealth creation as legitimate and admirable fosters a more dynamic private sector and encourages broader participation in economic activity.
- Cultural mindset influences outcomes. Vietnam’s willingness to confront internal challenges and embrace reform, rather than attribute hardship to external forces, emerges as a distinguishing factor in its development trajectory.
Challenges and Ongoing Work
While the documentary celebrates Vietnam’s achievements, it does not suggest the journey is complete. The film acknowledges that challenges remain, including the need to further strengthen institutions, enhance regulatory clarity, and expand economic freedoms. The narrative does not shy away from the reality that Vietnam’s one-party political system and restrictions on certain civil liberties coexist with a rapidly transforming market economy.
Conclusion
Vietnam – Beating Poverty with Market Economy offers a compelling narrative grounded in both economic history and personal stories. It presents Vietnam not simply as a statistical success, but as a living example of how thoughtful reforms, openness to global engagement, and an entrepreneurial spirit can reshape a nation’s destiny. This documentary invites audiences to think deeply about the nature of development, the role of markets, and the power of human agency in lifting entire societies out of poverty.
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Please do not hesitate to contact Dr. Oliver Massmann under [email protected] if you have any questions or want to know more details on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.
