Viet Nam

This chapter analyses the disclosure and transparency practices of SOEs against the Chapter VI of the SOE Guidelines. The chapter assesses the country’s policy framework to ensure transparency in the SOE sector, including auditing standards and aggregate reporting practices.

The Economic Outlook for Southeast Asia, China and India is a regular publication on regional economic growth, development and regional integration in Emerging Asia. It focuses on the economic conditions of the Association of Southeast Asian Nations (ASEAN) member countries: Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam. It also addresses relevant economic issues in China and India to fully reflect economic developments in the region. This November Update of the Outlook, following the Update 2020 released in July, presents a regional economic monitor, depicting the economic outlook and macroeconomic challenges in the region amidst the COVID-19 pandemic.

The Economic Outlook for Southeast Asia, China and India is a regular publication on regional economic growth, development and regional integration in Emerging Asia. It focuses on the economic conditions of Association of Southeast Asian Nations (ASEAN) member countries: Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam. It also addresses relevant economic issues in China and India to fully reflect economic developments in the region. The Outlook comprises two main parts, each highlighting a particular dimension of recent economic developments in the region. The first part presents the regional economic monitor, depicting the economic outlook and macroeconomic challenges in the region. The second part consists of a special thematic chapter addressing a major issue facing the region. The 2021 edition of the Outlook addresses reallocation of resources to digitalisation in response to COVID-19, with special focuses on health, education and Industry 4.0. During the COVID-19 crisis, digitalisation has proved critical to ensuring the continuity of essential services. The use of e-commerce, digital health tools and on-line education all accelerated sharply during the pandemic in Emerging Asia. However, there is still a lot of work to be done, for the region to be able to get the full benefits of digitalisation.

The Economic Outlook for Southeast Asia, China and India is a regular publication on regional economic growth and development in Emerging Asia. It focuses on the economic conditions of Association of Southeast Asian Nations (ASEAN) members: Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam, as well as China and India. It comprises two main parts. The first part presents the regional economic monitor, depicting the economic outlook and macroeconomic challenges in the region. The second part consists of special thematic chapters addressing a major issue facing the region. The 2022 edition addresses financing sustainable recovery from the COVID-19 pandemic. The COVID-19 pandemic is proving to be extremely costly, both economically and socially and sustainable financing solutions are crucial for an equitable and inclusive recovery. The report explores how governments can obtain additional financing by harnessing bond markets, and use green, social and sustainability bonds to achieve policy objectives.

The Economic Outlook for Southeast Asia, China and India is a regular publication on regional economic growth and development in Emerging Asia. It focuses on the economic conditions of the Association of Southeast Asian Nations (ASEAN) member countries: Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam. It also addresses relevant economic issues in China and India to fully reflect developments in the region. This Update presents the region’s economic outlook, depicting rapidly changing trends and macroeconomic challenges amidst external headwinds.

Chapter 1 examines the economic and environmental performance of the Hai Phong metropolitan region. After the introductory section, the second section, on the socio-economic profile of the metropolitan area, explains how urbanisation has affected economic activity, poverty, social equity and living conditions. It includes an assessment of: i) demographic changes, ii) economic performance and diversity and iii) long-term challenges for growth. The third section addresses environmental challenges and the potential for green growth. It analyses the environmental performance of the city and suggests opportunities for green growth. It includes an assessment of: i) energy performance, ii) transport and landuse trends, iii) challenges on water supply and wastewater treatment and solid waste management systems, and iv) the risk of floods. The last section analyses the local government system in Viet Nam and the institutional profile of the metropolitan area.

Since the Doi Moi reforms in the 1980s, Viet Nam has emerged to become one of the most dynamic economies in the Southeast Asia region, mainly thanks to its export-oriented, foreign direct investment-led economic model. This chapter summarises how Viet Nam is undertaking reforms to further encompass trade and investment liberalisation and how the country is further integrating within global capital markets.

This chapter discusses the robust economic growth Viet Nam achieved based on openness to international trade, foreign direct investment and integration in global value chains, but which has slowed down somewhat recently. It highlights the composition of exports which until recently has been dominated by low value-added, low-technology goods. The chapter then looks at the current state of framework conditions for innovation which, in a number of ways, constrain innovative activities. It concludes with a discussion of the role of science, technology and innovation as a driver of Viet Nam’s future economic development.

Since the launch of the Ðổi Mới economic reforms in 1986, Viet Nam has achieved immense economic and social progress. Most recently, its fast containment of Covid-19 has been remarkable and will support a return to the growth that Viet Nam has enjoyed thanks to its deep integration in the global economy and strong focus on developing the human capital of its population. Viet Nam has also achieved remarkable human development, poverty reduction and improvements in living standards, and has actively participated in international efforts to tackle the risks of climate change. Keeping economic and social progress on a strong track as society is ageing and the needs for more revenue and a broader social safety net are increasing, will require further policy reforms, which Viet Nam plans to introduce under its Socio-Economic Development Strategy.

Reforming the governance of SOEs would contribute significantly to productivity gains. It would moreover help level the playing field and generate equal opportunity for all market actors – private, public and foreign. Viet Nam has made concrete steps forward by creating the Commission for the Management of State Capital (CMSC). Looking ahead, a crucial next milestone is the definition of a transparent state ownership policy, and financial and non-financial performance objectives for all SOEs. The CMSC should moreover be given the power and resources to ensure compliance. Additional important steps include the professionalisation of the management boards of SOEs, increasing transparency of operations and results, and protection of the rights of minority shareholders.

Remarkable economic development over the past 20 years has taken a heavy toll on the environment and the availability of resources in Viet Nam. Demographic and economic trends will exacerbate these environmental issues. Moreover, electricity demand is spiking, exerting pressure on national power capacity and environmental sustainability. To improve environmental quality, Viet Nam needs to strengthen horizontal and vertical institutional co-ordination, reform regulations to ensure coherence, implementability and enforceability, and streamline the use of policy instruments. Compliance assurance strategies need revision, while access to environmental information could improve their effectiveness. To achieve energy security and independence, Viet Nam has to rebalance its energy portfolio by better planning and financing the low-carbon transition.

This chapter examines the country’s practices related to the Chapter IV of the SOE Guidelines on equitable treatment of shareholders and other investors. It looks at policy of communication and consultation with non-state shareholders, participation of minority shareholders in shareholder meetings and SOEs’ engagement in co‑operative projects such as joint ventures and public private partnerships.