Viet Nam has made remarkable economic progress over the past decades. Extensive and continued reforms since the late 1980s have been key to this economic success. But with significant challenges ahead, Viet Nam needs to advance structural reforms that will further strengthen market forces, improve social protection for an ageing population and make growth more sustainable. Macroeconomic policies could be enhanced by strengthening the operational independence of the central bank, price-based monetary policy and additional revenue mobilisation to address growing spending needs. Social benefits, including old-age pensions, could be strengthened and widespread labour informality reduced. Making growth more inclusive requires well-coordinated reforms to expand non-contributory social assistance benefits while maintaining strong incentives for formal job creation. Viet Nam is strongly affected by climate change and has committed to net zero carbon emissions by 2050. Reducing emissions from electricity generation by phasing out coal-fired plants and accelerating the rollout of renewable energy sources will sustain more sustainable growth. Foreign-owned firms have been a driver of growth but have developed few supplier links to local firms. More investment in tertiary education, stronger competition in services sectors and a more even playing field between private and state-owned companies could boost productivity growth.

SPECIAL FEAUTURE: HARNESSING TRADE AND INVESTMENT FLOWS TO BOOST PRODUCTIVITY

Further reading

• Press Release??English?l?Fran?ais
• Read the survey online?l Read the summary (en fran?ais)