OECD Economic Surveys : Viet Nam 2023 / OECD.

Format:

Book

Author/Creator:

OECD, author, issuing body.

Series:

OECD Economic Surveys Series

OECD Economic Surveys ; 2023

Language:

English

Subjects (All):

Economic development.

Political science.

Physical Description:

1 online resource (139 pages).

Edition:

1st ed.

Other Title:

OECD Economic Surveys

Place of Publication:

Paris : OECD Publishing, 2023.

Summary:

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.

Contents:

Intro

Foreword

Basic statistics of Viet Nam, 2021

Executive summary

Challenges remain despite the well-managed COVID crisis

The policy priority is to tame inflation, while being supportive of the recovery

Enhancing social protection is urgent to prepare for population ageing

The business climate needs to be further improved

The digital transformation needs to be accelerated on all fronts

Achieving net zero emissions calls for bolder policy action

Main findings and key recommendations

1 Key policy insights

Viet Nam should aim at not only high but also sustained post-pandemic growth

Macroeconomic policy should be gradually normalised

The economy showed resilience during the pandemic, but new challenges have arisen

Substantial policy space could be used if downside risks eventuate

Monetary policy needs to keep inflation expectations well anchored

Financial markets need to be strengthened for smooth resource reallocation

Banks are resilient, but need to closely monitor the rise of non-performing loans

The financial markets can be further developed through liberalisation

Making fiscal policy more transparent would strengthen its effectiveness

Past prudence has provided fiscal space, but more challenges are emerging

Further reforms are required to improve the functioning of the fiscal framework

Enhancing revenues is urgently needed to meet the increasing spending demands

Viet Nam's anti-corruption efforts have gained strong momentum recently

Tackling informality should be more centred in economic policy

The dynamic labour market creates many new jobs, but some are precarious

The role of household businesses in the economy should be strengthened

Viet Nam's social safety net should be more comprehensive.

A more inclusive approach is required to safeguard vulnerable workers

Old-age social safety nets needs to be strengthened amid the rapid population ageing

Viet Nam's public pension has been evolving, but is still underdeveloped

Providing social pension for all people is urgent

References

Annex 1.A. Determinants of income inequality

Annex 1.B. Estimation of effective retirement age

2 Strong, digital, and green post-COVID recovery

Improving the functioning of markets will be crucial for the post-pandemic recovery

More could be done to enhance product-market competition

Further enhancing SME development support

Large differences in administrative burden across provinces

A weak insolvency framework hinders business dynamism

Effective public consultations matter for the quality of regulation

The governance of SOEs should be improved to ensure competitive neutrality

Price controls hinder product-market competition

Accelerating digitalisation after the pandemic

Digital transformation and innovation

Digital infrastructures have expanded rapidly

Strengthening the acquisition of digital skills

Digital finance: fast rise of cashless payments

Government digital services are a priority

Pursuing green recovery

Viet Nam is severely exposed to weather hazards

Greenhouse gas emissions are rising fast

Viet Nam aims at net zero greenhouse gas emissions in 2050

Multiple funding sources are available to reach net zero GHG emissions

Emission pricing

Sectoral trends and prospects

Power generation

Agriculture

Transport

References.

Notes:

Description based on publisher supplied metadata and other sources.

OECD Economic Surveys - https://doi.org/10.1787/16097513 -- OECD Economic Surveys - OECD Economic Surveys are periodic reviews of member and non-member economies. Reviews of member and some non-member economies are on a two-year cycle; other selected non-member economies are also reviewed from time to time. Each Economic Survey provides a comprehensive analysis of economic developments, with chapters covering key economic challenges and policy recommendations addressing these challenges -- Book.

ISBN:

92-64-96015-5