Putting aside the legacy of its unique history, Vietnam has achieved an excellent growth record. But it is still far behind the leading East Asian economies. We consider the Vietnamese growth strategy in light of the controversies about ‘accumulation vs assimilation’ and ‘non-intervention vs governing the market’. We discuss the changes that are occurring as a result of the actions of the still large state-owned sector, and as a result of growing private domestic and FDI-led entrepreneurship. Policy options for directing economic development are today influenced by Vietnam’s participation in AFTA and WTO. Trade links with China, Japan and the US also influence the direction of Vietnamese development.