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Vietnam's economy expected to surge 6.5% in 2023: OECD report

On the morning of April 26th, in Hanoi, the Ministry of Planning and Investment, in collaboration with the Organization for Economic Cooperation and Development (OECD) and the Asian Development Bank (ADB), as well as various ministries and ministerial-level institutions, presided over the release ceremony of the "OECD Economic Report: Vietnam 2023."

This is the first report on the Vietnamese economy released by the OECD and the Asian Development Bank.
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Dr. Koen Vincent from the OECD Department of Economics stated in his report that Vietnam has made significant economic progress in the past few decades and maintained a high growth rate. The comprehensive and sustained reforms since the late 1980s have been critical to the success of this economy. The Vietnamese economy has also shown resilience to shocks, including the COVID-19 pandemic. During the pandemic, the country's economic growth exceeded most Southeast Asian economies.

The OECD predicts that Vietnam's economy will steadily grow, with a gross domestic product (GDP) of 6.5% in 2023 and 6.6% in 2024.
However, according to Dr. Koen Vincent, given the openness of the economy, Vietnam is susceptible to geopolitical uncertainty and supply chain disruption risks. In addition, in the short term, external conditions threaten economic recovery. Supply chain disruptions may continue to pressure global trade, and rising global inflation may bring further downward pressure on Vietnam's exchange rate.

Also read: EVN proposes electricity price hike to combat losses » Breaking News, Latest World News Updates - VietReader Viet Nam

With significant future challenges, the OECD stated that Vietnam needs to make more efforts to promote structural reforms to strengthen market forces further.

In addition, the OECD stated that to reduce its dependence on fossil fuels, Vietnam should stop new investments in coal and accelerate the implementation of a carbon market. Due to the need for additional financial resources for these reforms, the tax base should be expanded to increase government revenue.
The OECD's 2023 Vietnam Economic Report presents three key messages. Firstly, macroeconomic policies need to help enhance economic resilience.

In the short term, the top priority is to alleviate the impact of high energy prices by providing targeted assistance to vulnerable households rather than adopting broader fiscal measures.

In the medium term, the report emphasizes the need to improve fiscal sustainability and strengthen macroeconomic policy frameworks by expanding the tax base. At the same time, it is necessary to strengthen social protection systems and reduce the size of the informal economy.
In addition, Vietnam needs to improve its business environment further and promote digital transformation to maintain high economic growth after recovery.
The report points out that to achieve the net zero emissions target by 2050, Vietnam needs to maintain a high level of investment in renewable energy and pursue higher energy efficiency.

This direction can be achieved through a comprehensive policy approach, which prioritizes effective public and private investment, establishes favorable regulation, and establishes a mechanism for market prices to reflect carbon content better.

At the report release ceremony, experts exchanged and discussed macroeconomic stability; Inflation control; To lay the foundation for accelerating socio-economic recovery and development; Reforming the regulatory system for commodity markets; Promoting digital transformation and green healing; Enhancing the independence and autonomy of the future economy.

Read more:
Inflation controlled, with efforts needed for new goal for 2023 | Nhan Dan Online 
Vietnam’s overseas investments rise - VnExpress International 
Digital transformation to be accelerated in 2023, says PM (vietnamnet.vn) 

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