Core Value of Human Capital

Human capital is considered the most important and enduring asset of any economy. Trust plays an important role, forming the foundation for other key factors such as confidence, motivation, and purpose, all of which drive performance and innovation.

All people are equal before the natural cycle of life, aging, illness, and death. Yet what creates the deepest core value of human beings is the strong belief in truth, the aspiration to create, and the pursuit of goodness, integrity, and beauty. These qualities enable us to innovate continuously and develop sustainably through every stage of life.

When people lose trust in society, they may become less willing to comply with the law, social cohesion may weaken, and the ability to address collective challenges may decline. This can lead to group interests, erosion of confidence in a fair and democratic system, and ultimately a cycle of inequality or the middle-income trap.

By contrast, trust fosters unity built on shared goals. Trust is formed when national resources are owned, used, developed, protected, and expanded in ways that ensure their existing and added values are measured and shared transparently, fairly, and openly within the community.

In Vietnam, during the resistance war to defend the Fatherland, resources were naturally concentrated with the voluntary participation of all stakeholders to achieve national liberation and reunification. Our Party and President Ho Chi Minh, with the 1945 Declaration of Independence and the slogan “Nothing is more precious than independence and freedom,” inspired faith in a better future, leading from one victory to another, and ultimately culminating in the liberation of the South and the reunification of the country in 1975.

As the country entered the phase of reconstruction and development, a comprehensive and equitable legal environment became essential to ensure that socioeconomic resources could be protected, shared, used, and developed fairly among all actors. The wartime planning mechanism, which operated on equalized allocation, became outdated and a barrier to economic progress. However, even during those difficult times, we maintained a strong faith in our leader Ho Chi Minh, guided by his teaching: “Whatever benefits the people, we must do our utmost. Whatever harms the people, we must avoid at all costs.”

With absolute trust in the Party, new ideas emerged during the challenging pre-renovation period. One of the most notable breakthroughs was the pilot allocation of contracted farmland to individual households in Vinh Phuc (Now Phu Tho province). This helped unleash human potential, improve productivity, and raise living standards. The remarkable yet quiet and courageous innovation of the people, known informally as informal contracting, soon scaled into a major social resource within the Party’s new economic framework. This was formalized through Resolution 24 in 1980 of the Hai Phong Party Standing Committee on agricultural output contracting. Hai Phong successfully implemented this economic breakthrough, and not long after, the Party Central Committee's Secretariat issued Directive 100 in 1981, officially recognizing output contracting as the legal basis for national agricultural development.

Through this first wave of economic renovation, Vietnam not only overcame hunger and gradually achieved food security but also quickly became one of the world’s leading agricultural exporters. The breakthrough and success of the agricultural sector spread to other sectors, laying the foundation for a market-oriented, export-driven economy and contributing significantly to the development of national human capital, social progress, and Vietnam’s path toward international economic integration.

Practical experience from Vietnam’s history of nation building and development once again demonstrates that people are the most important of all national resources, and that trust is the core element of human capital. Yet such trust can only exist in a society guided by positive messages, exemplary behavior, and actions that promote fairness, transparency, and national interests. This creates a healthy environment of freedom and democracy that encourages innovation and allows individuals and public officials to think boldly, act decisively, and take responsibility. It is also the starting point for new growth models and major breakthroughs. This partly explains why the 2025 Nobel Prize in Economics recognized the model of creative destruction as a driving force of growth even in the industrial 4.0 era.

Today, the comprehensive national renewal initiated and led by the Party, beginning with the Sixth National Congress in 1986 and continuing to the Fourteenth National Congress in 2026, marks forty years. Vietnam’s economy has maintained relatively rapid growth and become a developing country with middle income. Macroeconomic conditions remain fundamentally stable and the major balances of the economy are secured. The three strategic breakthroughs have been implemented in a coordinated and focused manner, producing notable results and creating new momentum for socioeconomic development. Public administration has been reformed toward a more professional and modern system with streamlined, efficient, and effective institutions, achieving breakthrough results.

However, the economy still relies heavily on exporting agricultural products, raw materials, and processed goods. Vietnam faces the risk of falling behind and potentially entering the middle- income trap due to low labor productivity, limited competitiveness, and constraints in science, technology, and high-quality human resources. The developing market economy remains fragmented, not fully competitive or fair, and lacks products capable of achieving economies of scale. In addition, the use and accumulation of national resources remain insufficiently coordinated and lacks concentrated effectiveness.

To develop and advance a comprehensive market economy in the new era, Vietnam requires a rule-of-law state that builds trust between the Party and the people in a brighter national future. Such a framework also provides the foundation for nurturing new talent, innovative ideas, and modern institutional economic models. The Political Report of the Fourteenth National Party Congress will serve as a key starting point for programs and economic models designed to drive this innovation.

In any circumstance, trust provides an invaluable source of motivation that helps overcome challenges and is essential for developing human capital. In the digital age, once trust is established, it spreads more rapidly and widely, generating unparalleled strength and resources for socioeconomic development. However, trust alone is not sufficient. It must be accompanied by a legal system and effective nationwide governance that can transform all resources into synergistic power. Only then can trust truly drive innovation and deliver positive breakthroughs for sustainable national development. As emphasized by Party General Secretary To Lam: “To succeed, the organizational structure and legal framework must be carried out with full societal consensus; the system cannot function if each part operates independently.”

The history of the Party’s revolutionary struggle and the achievements of forty years of reform are the clearest evidence of how national trust is built and strengthened under a pioneering Party whose members serve as loyal servants of the people, dedicated to the peace and prosperity of the country.

Dr. Doan Duy Khuong

Source: Vietnam Business Forum