This Survey is published under the responsibility of the Secretary-General of the OECD.

Viet Nam has been quick to recover from the downturns caused by the pandemic, owing to an agile policy response. The COVID-19 pandemic interrupted three decades of sustained high economic growth. Nevertheless, swift and tailored sanitary measures meant Viet Nam did not experience large-scale outbreaks until mid-2021. Thereafter, the vaccination campaign was fast. Economic growth outperformed most other Southeast Asian economies through the pandemic, providing a solid basis for further economic progress. Viet Nam is a socialist-oriented market economy. The Socio-Economic Development Strategy 2021-2030 pledges to continue bold economic reforms to attain upper middle-income country status.

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.

Viet Nam has implemented extensive reforms since the late 1980s, becoming one of the most open markets in Southeast Asia. Still, sustaining high economic growth in the coming decade will require additional efforts to boost labour productivity. To advance reforms, the government will need to take bold action to reduce state involvement and secure a level playing field among all market participants, including state-owned enterprises. Viet Nam’s recent rapid digitalisation driven by the private sector proves that competition is crucial to absorb and disseminate the latest technologies. The commitment to net zero emissions by 2050 creates challenges but also opportunities to stimulate innovation and pursue greener growth. Against this background, this chapter discusses how Viet Nam can make further progress in terms of levelling the playing field for businesses, providing an enabling environment for the digital transformation and moving towards a low carbon economy.