The theory of socio-economic morphology is recognized as one of the three major foundational contributions of Marxism, providing a critical theoretical and methodological framework for the process of building socialism, particularly in Vietnam. Over decades of historical practice, it has become evident that the success or failure in constructing a prosperous and happy nation is fundamentally influenced by the correct application of this theory. Misinterpretations or misapplications often lead to setbacks, while a rigorous and context-sensitive approach fosters sustainable development and social well-being. This article focuses on examining how the theory of socio-economic morphology has been applied in Vietnam’s efforts to achieve national prosperity. It highlights the dynamic interplay between socio-economic structures and development policies, emphasizing how these theoretical principles guide practical decision-making in the Vietnamese context. Moreover, the article identifies several current challenges Vietnam faces amid rapid globalization, technological advancement, and socio-political changes, which complicate the straightforward implementation of traditional Marxist frameworks. In response to these challenges, the article proposes methodological solutions designed to adapt and refine the application of socio-economic morphology theory. These include integrating innovative development models, promoting inclusive growth, and enhancing the adaptability of socialist construction strategies to contemporary realities. Ultimately, this research underscores the importance of a flexible yet principled approach to applying socio-economic morphology theory as Vietnam continues its path toward building a prosperous, equitable, and happy society.