OECD Economic Surveys: Viet Nam 2023
Viet Nam has made remarkable economic progress over the past decades, sustaining high economic growth. The economy has also proven resilient to shocks, including the COVID-19 pandemic. Extensive and continued reforms since the late 1980s have been key to this economic success. Nevertheless, with significant challenges ahead, Viet Nam needs to make additional efforts to advance structural reforms that will further strengthen market forces. The population is rapidly ageing and boosting productivity is an urgent priority. This will require further reforms to reduce state involvement, especially in network sectors such as telecommunications, and ensure a level playing field among all firms. Further deepening trade integration is also crucial to strengthen supply chains amid the changing global economic landscape. Despite recent increases in digital uptake, Viet Nam needs to upgrade worker skills by improving vocational training and adult learning. The pledge to achieve net zero emissions by 2050 requires dramatic changes in the economic system. To reduce dependence on fossil fuels, new investment in coal should be halted and the implementation of a carbon market accelerated. As these reforms will require additional fiscal resources, the tax base should be expanded to enhance government revenues.
SPECIAL FEATURES: PRODUCT MARKET REGULATION; DIGITALISATION; GREEN GROWTH
Also available in: French, Vietnamese
Executive summary
Viet Nam has been quick to recover from the downturns caused by the pandemic, owing to an agile policy response. The COVID-19 pandemic interrupted three decades of sustained high economic growth. Nevertheless, swift and tailored sanitary measures meant Viet Nam did not experience large-scale outbreaks until mid-2021. Thereafter, the vaccination campaign was fast. Economic growth outperformed most other Southeast Asian economies through the pandemic, providing a solid basis for further economic progress. Viet Nam is a socialist-oriented market economy. The Socio-Economic Development Strategy 2021-2030 pledges to continue bold economic reforms to attain upper middle-income country status.
Also available in: Vietnamese
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