Setting a double-digit GDP growth target for the 2026–2030 period reflects Vietnam’s great aspiration—one that aligns with its vision of becoming an upper-middle-income country by 2030 and a developed nation by 2045. To achieve this goal, Vietnam must mobilize a much larger volume of capital for development investment and, more importantly, use that capital far more efficiently than in the past. A comparison between the growth rate of investment capital and GDP growth, together with the incremental capital-output ratio (ICOR) and related indicators of successful countries in the region such as Japan, South Korea, and China, highlights the challenges Vietnam will face in mobilizing and using resources over the next two decades. Periods of the highest growth Tables 1, 2, and 3 present data on GDP growth rates, the share of investment in GDP, and the ICOR during the periods of highest average GDP growth over 10, 20, and 30 years for four countries, based on data from the International Monetary Fund, the World Bank, and other sources. During its golden 10-year period, South Korea achieved a remarkable average GDP growth rate of 11.4% with an ICOR of just 2.4. This means that to generate one unit of growth, South […]