Economic Survey of Viet Nam: GDP Growth at 6.5 Percent in 2023

Via Syndicated Feed

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During a ceremony in Hanoi on April 26, the Organisation for Economic Cooperation and Development (OECD) unveiled its first report on Vietnam's economy based on a survey conducted in collaboration with the Asian Development Bank (ADB). The report forecasts that Vietnam's GDP will grow firmly, with a projected rate of 6.5% in 2023 and 6.6% the following year.

Vincent Koen, Acting Deputy Director of the OECD's Economic Country Studies Branch, attributed Vietnam's impressive economic progress to extensive and sustained reforms since the 1980s. He stated that despite the COVID-19 pandemic, Vietnam's economy has proven to be resilient to shocks, and the country showed remarkable economic growth compared to other Southeast Asian nations during the outbreak.

Need for Advancing the Structural Reforms

Although the openness of Vietnam's economy makes it susceptible to geopolitical uncertainties and supply chain disruptions, the OECD recommends that Vietnam focus on advancing structural reforms to strengthen market forces and overcome significant future challenges.
To reduce reliance on fossil fuels, Vietnam should stop investing in coal and accelerate the implementation of a carbon market. These reforms will require additional fiscal resources, and the government should expand the tax base to increase revenue.
The survey suggests that Vietnam should provide targeted financial support to households significantly affected by high energy and food prices, develop a medium-term fiscal consolidation plan, simplify business regulations, and enhance digital skills.

Need for a Long-term Climate Change Strategy

The report suggests that Vietnam needs to create a comprehensive, long-term climate change strategy that provides a clear and predictable roadmap for all economic sectors to transition towards a low-carbon path. This strategy should emphasize the need for an energy sector reform that prioritizes investing in renewable energy sources like wind, solar, and hydropower while reducing dependence on fossil fuels.
Transitioning to renewable energy sources can help Vietnam meet its growing energy needs sustainably and affordably while reducing greenhouse gas emissions. However, the report notes that while Vietnam has taken steps toward renewable energy development, it needs to accelerate its efforts to achieve its targets.
Additionally, the report emphasizes the importance of having a supportive regulatory and policy framework in-place to attract private-sector investment in the renewable energy sector. This includes providing incentives for renewable energy projects and setting ambitious targets to drive investment. In summary, a comprehensive and predictable long-term climate change strategy that prioritizes renewable energy and supports private sector investment is crucial for guiding all economic sectors towards a low-carbon path in Vietnam.
IndraStra Global Staff has not edited this story, which is auto-generated from a syndicated feed.

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