This paper focuses on the role of classroom observation in the development and assessment of schoolteachers in Vietnam through a narrative review of current policy and cognate research literature. The overall aim of this review was twofold. Firstly, to contribute to a growing bank of Vietnam-based studies to maximise the value of the insights from this scholarly work into recent policy reforms on teachers' professional development in Vietnam. Secondly, to widen access and exposure to published work on the topic in Vietnamese that is not readily accessible to English-speaking scholars. This review revealed a long history and engrained culture of using observation as a teacher performance evaluation tool. In recent years, there have been policy reforms and research studies that have repositioned observation as a tool for teacher learning and development. However, the implementation of these reforms has been inconsistent across Vietnam, along with recent reform having encountered resistance from a culture of compliance in schools. This paper identifies some of the key issues that policy makers and educational leaders need to address in practice in order to ensure the effective and meaningful implementation of the reforms relating to the use of observation for learning and developmental purposes.