Vietnam
As of 1 July 2026, the World Bank has reclassified the Socialist Republic of Vietnam from a lower-middle-income to an upper-middle-income country, following an increase in its gross national income (GNI) per capita. This achievement reflects the country’s economic growth trajectory, which began with the Đổi Mới (Renewal) reforms introduced in the late 1980s. These reforms have progressively shifted the economy towards a market-oriented and export-driven model, helping make Vietnam one of the most dynamic economies in Southeast Asia.
Despite its significant economic progress, Vietnam continues to face major challenges related to the impacts of climate change, rapid urbanization and industrialization, the energy transition, and the need to promote sustainable development. The Vietnamese Government has set the goal of achieving high-income country status by 2045.
Italian Development Cooperation has been operating in Vietnam since the late 1990s, supporting the country’s development through initiatives in the fields of health, water, sanitation and hygiene (WASH), urban rehabilitation, sustainable agriculture, environmental protection, natural resource management, statistics, and cultural heritage conservation. With the establishment of the Italian Agency for Development Cooperation (AICS) in 2016, the former Technical Unit became the AICS Office in Hanoi.
Recent reforms to the Official Development Assistance (ODA) system have opened new opportunities for cooperation, encouraging the use of more flexible and innovative cooperation instruments and greater involvement of stakeholders from the Italian system, particularly in the areas of green growth, the energy transition, and the circular economy.
Italian Development Cooperation initiatives in Vietnam are aligned with the country’s national development priorities and contribute to promoting a sustainable, resilient, and inclusive growth model. While Vietnam is no longer a priority country for Italian Development Cooperation, it remains the largest recipient of Italian Official Development Assistance in the region. As a member of ASEAN since 1995, Vietnam also benefits from regional initiatives promoted by Italy under the Italy–ASEAN Development Partnership.
Vietnam’s ranking in the Human Development Index (HDI): 93rd out of 193 countries.
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