THE RECIPROCAL INTERACTION BETWEEN POLITICAL AND ECONOMIC INSTITUTIONS IN VIETNAM’S CURRENT DEVELOPMENT MODEL

Abstract

In development theory, the dialectical relationship between political and economic institutions plays a decisive role in determining the success or failure of a nation. In Vietnam, the traditional growth model, which has relied heavily on natural resources and low-cost labour, is approaching its limits. To achieve the goal of becoming a high-income developed country by 2045, it is urgently necessary to examine the mechanisms of interaction between these two institutional systems in order to remove existing institutional “bottlenecks.” Addressing this dilemma requires Vietnam to pursue more decisive and coordinated reforms of both its political and economic institutions. This article presents the theoretical foundations of the interaction mechanisms between political and economic institutions. It also analyses how these institutions influence the development of the green economy, the private sector, and the expansion of new development spaces. The discussion focuses on three key issues arising from the research findings. These urgent issues require Vietnam to take more decisive measures to improve the mechanisms of interaction between political and economic institutions within its current development model.