The world is witnessing complex and unpredictable changes, ranging from economic, political crises to security issues. The competition of geostrategy among major powers is intensifying, affecting the stability and development of countries. Despite the opportunities it has brought, globalization has also posed significant challenges, particularly for developing countries. Deep, extensive economic integration through globalization has increased nations’ dependence on global market, heightening their vulnerability to external shocks. Hence, in recent years, many countries worldwide have emphasized the formulation of strategies to develop autonomous economies under conditions of globalization and international integration. At the annual meeting of American Economic Association in 2007, Professor Simon Johnson of Massachusetts Institute of Technology (MIT – a private research university in Cambridge, United States) had presented a strong metaphor highlighting the failure of current models in ensuring the sustainable economic development of countries (1). Professor Johnson emphasized that without a solid economic development model, the successes achieved by the world’s economies would not be lasting; building an autonomous economy represents an alternative way of thinking about the processes and outcomes of economic development. Countries with the capability of economic autonomy are better able to recover—and recover more quickly—from negative economic shocks arising from external environment. Economic autonomy can be viewed as a form of “insurance” that protects nations against developmental disruptions caused by adverse and uncertain external conditions. More importantly, an autonomous economy provides a solid foundation provides a solid foundation for individuals to grow and realize their own potentials. When people’s living conditions are adequately ensured, they can focus more on development and fully express their talents, skills, emotions and values.
An independent, self-reliant economy is an economic system with the ability of making its own decisions and managing its production, consumption, and distribution activities without dependence on external factors (2). This involves maximizing internal resources and ensuring stability and sustainable development amid globalization and international integration. However, an autonomous economy does not imply a closed economy. Nations pursuing economic autonomy must still actively engage in deep and broad integration with the global economy to seize development opportunities and strengthen national capacity, thereby ensuring the economy’s self-reliance.
Economic autonomy can be manifested through the following key dimensions:
First, maximizing the internal resources of the economy: An economy relies on a country’s available resources, such as natural resources, labor, and domestic technology. Promoting internal strengths enhances competitiveness and minimizes risks arising from global economic fluctuations (3).
Second, independence in making development policies: The State has the authority to make its own economic policy decisions without being influenced by external conditions. This includes determining development strategies, selecting trade partners, and establishing regulations suited to each country’s specific circumstances (4).
Third, resilience and adaptability to international fluctuations: An autonomous economy is capable of withstanding external market shocks and maintaining stable operations under all circumstances. This contributes to safeguarding national security and ensuring social stability (5).
Fourth, an economy with proactive international integration: Although an independent economy emphasizes self-reliance, international integration remains essential. Such an economy actively participates in international organizations and concludes trade agreements to attract investment and technology while safeguarding national interests (6).
Thus, an autonomous economy is not a closed or self-sufficient economy, but one that operates efficiently based on its internal resources in the era of globalization. This requires a clear development strategy, the active participation of all social strata, and effective state leadership to achieve sustainable development goals and enhance the country’s position in the international arena.
First, focusing investment to become a technological power
Since the 20th National Congress, the Communist Party of China has affirmed its commitment to the strategy of “self-reliance” as a foundation for addressing external challenges (7). This strategy was strongly reaffirmed at the closing session of the National People’s Congress in 2023, where General Secretary and President Xi Jinping emphasized that “China should strive to achieve greater self-reliance” (8).
To realize this policy, China has focused on several key tasks. Over the past five decades, China’s growth model has been characterized by a high investment-to-GDP ratio and a low consumption-to-GDP ratio. In earlier periods, China expanded its production capacity—particularly in manufacturing sectors—without a corresponding increase in domestic demand, causing its economy to become dependent on external demand. According to data from the International Monetary Fund, China’s merchandise trade surplus reached an all-time high of nearly USD 900 billion in 2022. Many researchers have pointed out that China’s economic growth has become increasingly dependent on exports (9), while production remains heavily reliant on imports due to the lack of self-sufficiency in many raw materials. This has deepened China’s concerns over its growing economic dependence on external sources.
In 2018, General Secretary and President Xi Jinping called for a nationwide approach to reduce the reliance of China on exporting some important technology components. This policy led to an adjustment of the country’s growth model toward strong investment in expanding production capacity, coupled with restrained domestic consumption. China has been transforming its economy toward self-reliance, which is considered one of its most significant strategic shifts. Essentially, Beijing aims to reduce external dependence and strengthen its capacity in key sectors to enhance resilience and ensure the full functioning of the economy even amid increasing turbulence. This strategy includes: (i) increasing national investment in strategically important technological sectors; (ii) strengthening domestic talent cultivation and “shifting” expertise to lead innovation; and (iii) reducing reliance on imports (10).
The key to China’s self-reliance strategy lies in achieving self-sufficiency in science and technology. General Secretary and President Xi Jinping has stated that China must “master more core technologies” and continuously “expand the innovation chain and improve the industrial chain.” As early as 2015, Beijing launched the Made in China 2025 initiative, aimed at driving industrial development to achieve 70% self-sufficiency in high-tech industries by 2025. In March 2021, China further announced its 14th Five-Year Plan to promote growth in advanced technological fields such as robotics, quantum computing, and artificial intelligence (AI), thereby strengthening the nation’s technological capabilities.
China has actively invested in modernizing its industrial production base through policies supporting manufacturers, promoting smart manufacturing, deploying 5G technologies in industrial facilities, and creating dynamic semiconductor production clusters. At the same time, it has focused investment on developing the automobile industry. Local governments have introduced various support policies for electric vehicle manufacturers, thereby enhancing the competitiveness of this sector in both domestic and international markets. Within a few years, China’s trade balance has undergone a remarkable transformation. The country has shifted from being a net importer to a net exporter of finished automobiles, while also significantly increasing its net exports of auto parts. This demonstrates that China is not only gaining market share in assembled vehicles but is also progressing toward comprehensive self-reliance. Moreover, when examining aggregate trade flows, the change in the trade balance reflects both an increase in exports and a sharp decline in imports, particularly of auto parts, during the 2020–2023 period (11). This indicates China’s concerted efforts to develop its domestic supply chain, building a stronger self-sufficient system for producing high-tech components and products within the country, thereby reducing the risks associated with dependence on imports from other nations.
Second, strengthening and diversifying international economic relations
To reduce dependence on the U.S. market within its diversification strategy, China has actively sought and developed new export markets in Asia, Africa, and Latin America through the conclusion of free trade agreements (FTAs), while also strengthening regional trade cooperation via initiatives such as the Belt and Road Initiative (BRI) to establish solid economic ties with neighboring countries. At the same time, China has expanded economic cooperation with emerging economies such as India and Brazil to foster more sustainable trade relations. The country has also focused on building strategic partnerships with major regions, organizations, and countries, including the European Union (EU), Russia, and ASEAN member states, to create a diversified network of economic support.
Third, investing in improving human resource quality and attracting talent
Over the past 60 years, China has transformed from a poor country into one of the world’s leading powers. To achieve this remarkable success, the nation has implemented a number of key economic and social policies, including policies on education and talent attraction. China has consistently prioritized the quality of education, actively sending students to study in advanced countries while introducing attractive policies to encourage their return. The large number of returning overseas graduates demonstrates the success of this talent development strategy. Alongside efforts to attract overseas Chinese professionals, China has also launched initiatives to draw global talent for scientific research. At the end of 2008, China introduced the “Thousand Talents Plan,” aimed at recruiting top scientists, economists, and strategists from Europe, the United States, and Japan, offering highly competitive incentives (12). These strategies illustrate that China’s model of a self-reliant economy is not one of traditional self-sufficiency, but rather a system built upon the “dual circulation” strategy — strengthening the domestic economy through stable internal growth while simultaneously expanding international cooperation, thereby enhancing China’s global economic influence.
On May 12, 2020, Indian Prime Minister Shri Narendra Modi called for a nationwide launch of the Self-Reliant India Campaign (Atmanirbhar Bharat Abhiyaan) and announced a special and comprehensive economic package worth 20 lakh crore INR — equivalent to 10% of India’s GDP — to address the impacts of the COVID-19 pandemic in the country. This marked a significant milestone in India’s pursuit of a self-reliant economy. The campaign set out five key pillars: Economy, Infrastructure, System, Vibrant Demography, and Demand. Among these, the Economic pillar is expected to deliver a quantum leap rather than merely an incremental expansion. The Infrastructure pillar is envisioned as the identity of India. The System pillar is based on arrangements driven by 21st-century science and technology. The Demography pillar serves as the driving energy for a self-reliant India. The Demand pillar is defined as the strength of the supply chain, which must be fully leveraged. In addition, the Government of India implemented several bold reforms, such as restructuring agricultural supply chains, rationalizing the tax system, simplifying and clarifying laws, developing a competent workforce, and strengthening the financial system. To create momentum for the Self-Reliant India Strategy, Prime Minister Modi announced a special economic package worth 20 lakh crore rupees, equivalent to 10% of India’s GDP. The package focused on land, labor, liquidity, and laws, serving various sectors — identified as the core priorities for achieving comprehensive national self-reliance.
The key components of the Self-Reliant India Strategy include:
First, investing in agricultural development
This involves reforming agricultural supply chains, rationalizing the tax system, simplifying and clarifying laws, developing a skilled workforce, and strengthening the financial system. These reforms aim to promote business, attract investment, and further advance the Made in India initiative, preparing the nation to compete effectively in the global supply chain — and, more importantly, to succeed in that competition. India’s support packages have focused largely on empowering the poor, workers, and migrants, while emphasizing the critical role of local production, local markets, and local supply chains.
Second, investing in the development of modern public infrastructure
The Government of India has also focused on developing modern infrastructure that demonstrates significant progress in scale, technology, and sustainability, reflecting the country’s rapid economic growth and urbanization. The infrastructure system spans multiple sectors, including transportation, energy, urban development, and digital connectivity. To further accelerate infrastructure development, India launched the National Infrastructure Pipeline (NIP) project, which involves an estimated investment of over USD 1 trillion over five years, including renewable energy projects expected to actively attract private sector participation.
India has made progress in its infrastructure development plans through the National Investment and Infrastructure Fund (NIIF). The NIIF was established to manage investments and serve as a platform for domestic and global investors as well as multilateral development banks (MDBs) to co-invest. In October 2023, India announced the launch of the India–Japan Fund through a partnership with the Japan Bank for International Cooperation (JBIC). The fund approved 600 million USD, dedicated to investments that promote sustainability and low-carbon initiatives. On February 20, 2024, the Japan International Cooperation Agency (JICA) announced the signing of loan agreements totaling 232.209 million JPY. These loans are designated to finance specific projects, including road network connectivity initiatives, freight corridor projects, and climate change adaptation and ecosystem service enhancement programs in targeted regions across India. Through multiple investment and loan partnerships, a series of major transport projects have been constructed and completed — such as the expressway connecting the capital city of Delhi with the financial hub of Mumbai and the Chenab Rail Bridge, the highest railway bridge in the world — demonstrating India’s determination in implementing its national strategy. At the same time, the Government of India has aimed to balance urban transformation with programs that promote the development of public transport infrastructure. The 2023 PM-eBus Sewa Program is one such initiative launched to enhance bus operations and encourage the use of public transportation through secure payment mechanisms. In addition, state resources have been allocated to invest in offshore wind power projects, solar energy system installations, and the procurement of biomass-based machinery.
Third, investing in information technology development
India is in a particularly advantageous position for transformation, driven by rapid advances in science, technology, and modern information technology. This transformation integrates technology into all aspects of life, creating automated and interconnected systems across sectors. Information technology has been identified as a key driver for India’s exponential growth. In practice, IT plays a crucial role in reshaping sectors such as healthcare, payments, education, agriculture, and e-governance. This has strengthened India’s position as a global innovation hub, powered by a vibrant ecosystem of startups, research institutes, and technology giants. According to the Ministry of Communications of India, as of April 2024, 95,15% of villages in India had mobile internet access via 3G/4G connections(13). With nearly two-thirds of India’s population living in rural areas, this is expected to further boost e-commerce, fueled by rising purchasing power in rural markets.
From the experiences of developing countries in building autonomous economies, several key lessons can be drawn for Viet Nam in fostering its own economic self-reliance: First, identifying investment in advanced and modern science and technology as a key driver for strengthening national economic capacity. Both China and India clearly recognize the role of advanced science and technology in building a self-reliant economy. These two countries have made substantial investments in science and technology development, affirming their positions on the international stage while reducing dependence on other nations. The development and application of science and technology in production and daily life have become central levers for enhancing economic potential, production capacity, and labor productivity in these countries.
Second, investing in the development of a modern public transportation infrastructure system. India’s experience demonstrates that adopting advanced models, implementing sound support policies, and investing in transport technology to build an efficient, modern, sustainable, and environmentally friendly public transport system can greatly improve people’s quality of life and contribute to the nation’s sustainable development. Therefore, it is essential to establish a dedicated fund for public transport development, focusing on mobilizing social resources to invest in research, policy development, and the operation of an efficient and eco-friendly public transport system.
Third, investing in agricultural development and promoting green transition to ensure food security. The experiences of both China and India show that investing in sustainable agriculture and pursuing green transformation are key not only to ensuring food security but also to fostering sustainable economic growth and environmental protection. The State should adopt preferential tax policies and provide financial and credit support for enterprises investing in sustainable agriculture. It is also necessary to improve transport, irrigation, and storage infrastructure to support more efficient agricultural production and distribution. It is important to encourage the use of advanced technologies in agricultural production, such as water-saving irrigation systems and automation in crop cultivation and livestock farming. Sustainable value chains should be developed from production to consumption to ensure stable market outlets for agricultural products and improve farmers’ incomes. At the same time, close coordination among the State, enterprises, and farmers is needed in implementing policies and strategies to promote the sustainable development of the agricultural sector. The application of modern technologies, improvement of infrastructure, and establishment of sustainable value chains will help enhance the competitiveness of Vietnamese agricultural products in international markets.
Fourth, investing in and improving human resource quality to meet the demands of digital and green transformation in the economy. By prioritizing high-quality training programs, applying technology in education, and creating an attractive working environment, China has successfully built, developed, and attracted a highly skilled workforce that meets the requirements of a self-reliant economy grounded in modern science and technology. It is evident that digital human resources are a decisive factor for economic development in the new context and for ensuring national self-reliance. Therefore, Viet Nam should formulate and adopt incentive policies for educational institutions and enterprises investing in digital and high-quality human resource training, including financial assistance and tax incentives. Collaboration between educational institutions and enterprises should be strengthened to ensure training programs align with labor market needs, while digital skills training for workers should be enhanced to help them adapt to new technologies and improve their performance in a digital environment.
Fifth, strengthening and diversifying international economic relations. China’s experience shows that diversifying international economic relations is essential to achieve two simultaneous goals: reducing dependence on external environments and attracting investment to strengthen domestic capacity. For Viet Nam, diversifying trade partners helps expand markets for goods, services, and labor, thereby minimizing risks arising from dependence on one or a few major markets. In addition, enhancing cooperation with countries that have strong potential creates opportunities to attract foreign direct investment (FDI), contributing to improved production capacity and technological advancement for the economy.
It is evident that building an autonomous economy is an urgent requirement in the current context. An autonomous economy will enable Viet Nam to better adapt to and withstand external market shocks, maintaining stable social and economic operations under all circumstances. Therefore, it is necessary to further promote economic diplomacy to strengthen relations with strategic partners while seeking new opportunities for cooperation across various sectors. This will help enhance Viet Nam’s credibility and position in the international arena, ensuring a comprehensive and fully self-reliant economy.
(1) Godfrey, P.C: What is Economic Self-reliance? Brigham: Brigham Young University, 2008
(2) Godfrey, P. C: Editor's Introduction: Welcome to the new ESR Review, Journal of Microfinance/ESR Review, 8 (1), 2-2006
(3) Phùng Quang Phát & Nguyễn Tú Anh: Xây dựng nền kinh tế độc lập, tự chủ và chủ động hội nhập quốc tế trong kỷ nguyên mới, Tạp chí Quản lý nhà nước, ngày 15-10-2024, https://www.quanlynhanuoc.vn/2024/10/15/xay-dung-nen-kinh-te-doc-lap-tu-chu-va-chu-dong-hoi-nhap-quoc-te-trong-ky-nguyen-moi/
(4), (5) Nguyễn Bích Lâm: Xây dựng nền kinh tế độc lập tự chủ, thổi bùng khát vọng Việt Nam hùng cường, phồn vinh, hạnh phúc, Báo điện tử Chính phủ, ngày 31-8-2023, https://xaydungchinhsach.chinhphu.vn/xay-dung-nen-kinh-te-doc-lap-tu-chu-thoi-bung-khat-vong-viet-nam-hung-cuong-phon-vinh-hanh-phuc-119230302164025544.htm
(6) Phạm Việt Dũng: Định hướng xây dựng nền kinh tế độc lập, tự chủ và hội nhập quốc tế toàn diện, sâu rộng trong bối cảnh mới ở Việt Nam, Tạp chí Cộng sản điện tử, ngày 17-12-2023, https://www.tapchicongsan.org.vn/web/guest/kinh-te/-/2018/850802/dinh-huong-xay-dung-nen-kinh-te-doc-lap%2C-tu-chu-va-hoi-nhap-quoc-te-toan-dien%2C-sau-rong-trong-boi-canh-moi-o-viet-nam.aspx#
(7) Hoàng Huệ Anh: Hội nghị Trung ương 3 khóa XX Đảng Cộng sản Trung Quốc: Chú trọng duy trì ổn định và phát triển chất lượng cao, Tạp chí Cộng Sản điện tử, ngày 2-12-2024, https://www.tapchicongsan.org.vn/web/guest/the-gioi-van-de-su-kien/-/2018/1009702/hoi-nghi-trung-uong-3-khoa-xx-dang-cong-san-trung-quoc---chu-trong-duy-tri-on-dinh-va-phat-trien-chat-luong-cao.aspx
(8), (10), (11) De Soyres, F., & Moore, D: Assessing China's Efforts to Increase Self-Reliance, 2024(9) Megan Hogan & Gary Clyde Hufbauer: "Despite disruptions, US-China trade is likely to grow," Policy Briefs PB23-14, Peterson Institute for International Economics, 2023
(12) Nguyễn Bích Lâm: Xây dựng nền kinh tế độc lập tự chủ, thổi bùng khát vọng Việt Nam hùng cường, phồn vinh, hạnh phúc, Báo Điện tử Chính phủ, ngày 31-8-2023, https://xaydungchinhsach.chinhphu.vn/xay-dung-nen-kinh-te-doc-lap-tu-chu-thoi-bung-khat-vong-viet-nam-hung-cuong-phon-vinh-hanh-phuc-119230302164025544.htm
(13) Ministry of Communications India: https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2040566
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