This country study explores how Vietnam can improve economic policies to achieve social upgrading linked to economic upgrading. It investigates the history and present approaches to industrial policy in Vietnam and identifies examples on the national, regional and sector levels. In case studies, the authors analyse the effects of industrial policies on the ground: In one of them, the case studies of Binh Duong Province, the study reflects the potential of industrial policies. Within 20 years after establishment, Binh Duong, in the south-eastern region of Vietnam, shifted from a poor, agricultural province to one of the most industrialized provinces in the country and the first to completely eradicate poverty. Drawing from examples like this one, the study provides tangible policy recommendations for decision-makers on how to best improve social and economic conditions through industrial policies in a middle income county with significant potential.