2023 OECD Economic Surveys: Viet Nam 2023

image of 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.


English Also available in: French, Vietnamese

Key policy insights

For more than three decades, Viet Nam has made remarkable economic progress. Active participation in global value chains has brought economic prosperity, but it also makes Viet Nam susceptible to external conditions, which have recently become more uncertain than before. While foreign investment has taken the lead of export-oriented manufacturing, a large number of small businesses play an important role in domestic economic activities. Economic hardship often hits small businesses and poorer households most severely. Moreover, a vast number of people are not yet covered by social security despite the acceleration of population ageing. This chapter discusses the macroeconomic and social impacts of the recent crises, notably the COVID-19 pandemic and Russia’s invasion of Ukraine, and their policy implications for achieving robust and inclusive progress in the medium term, including the importance of further trade integration for Viet Nam.

English Also available in: Vietnamese


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