WB report provides policy advice for Vietnam to maintain quality growth

The World Bank (WB) released a report on May 27, offering policy recommendations to help Vietnam maintain quality growth through more dynamic firms, more efficient infrastructure, skills, and a move toward a greener economy.

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The report, entitled “Vibrant Vietnam: Forging the Foundation of a High-Income Economy”, comes as the country’s Government is preparing its socio-economic development strategy for 2021-2030 and a socio-economic development plan for 2021-2025.

It suggested that a productivity-driven development model – combining innovation with balanced development and allocation of private, public, human and natural capital – will be key for Vietnam to achieve its goal of becoming a high-income economy by 2045.

Some of the forces that have propelled Vietnam’s growth are now slowing. The country’s demographic dividend is fading, and global trade is declining, while other challenges – such as pollution and the rise of automation, are growing. The ongoing COVID-19 crisis could be an accelerator of these trends, according to the report.

It argued that to thrive in such changing environment, Vietnam needs to strengthen its productive assets, with priority given to four areas./.

VNA