Multi-dimensional Review of Viet Nam

Towards an Integrated, Transparent and Sustainable Economy

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Since the launch of the Ðổi Mới economic reforms in 1986, Viet Nam has achieved tremendous economic and social progress. Today, it is well integrated on global markets, has enjoyed robust growth, and has seen remarkable poverty reduction. With its recent successful fiscal consolidation, its attractiveness as a trading destination and rapidly growing domestic middle class, Viet Nam faces a window of opportunity for its transition to an inclusive market economy. Three guiderails should form the basis of this strategy: integration, transparency and sustainability. Better integration between state-owned enterprises, foreign investors and domestic private companies in open markets will be key to future performance gains. Partnerships between universities and enterprises would also help upgrade skills and create innovation, thereby making the integration durable. Transparency and performance of government are prerequisites for trust and a key lever to enhance efficiency and productivity in most areas of the state and the economy. A more sustainable development path will need better management of water, air and energy to address climate change. Reforms of the social security system can also ensure that no one is left behind, especially in the face of a fast ageing population.


Multi-dimensional constraints analysis in Viet Nam

The multi-dimensional analysis identifies constraints to Viet Nam’s development along the Sustainable Development Goals. To improve people’s quality of life and opportunities, access to upper-secondary education and more sophisticated skills has to improve, together with coverage of social protection and health system. Boosting productivity requires enhancing the macroeconomic policy framework, tackling inefficiencies in the state sector, handling large pockets of low-productivity firms, and promoting integration between domestic and foreign firms. Global and domestic challenges call for fiscal policies and financial reforms to mobilise private resources. Building capacity of the public administration and building predictability around the legislative process should create a more conducive business environment, ensure effective implementation and re-establish trust in institutions. Finally, a more efficient use of natural resources and horizontal management of impact from natural hazards are required to bring Viet Nam back on a sustainable growth path.



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