Vietnam Aims for High, Sustainable Growth; ADB Offers Recommendations

To maintain its double-digit growth trajectory, Vietnam needs to pursue a more decisive shift towards enhancing productivity, fostering innovation, strengthening the domestic private sector, deepening capital markets, and increasing linkages between foreign direct investment (FDI) and local enterprises, according to the Asian Development Bank (ADB). The ADB's country representative in Vietnam emphasized that structural reforms in these areas are crucial for Vietnam to achieve sustained high growth. A transition to an innovation-driven economy, in particular, is expected to boost competitiveness and become a new engine of growth. Furthermore, the ADB projects a slowdown in economic growth for the Asia-Pacific region in 2026. This outlook highlights the need for Vietnam's economy to flexibly adapt to changes in the external environment, stabilize domestic demand, and strengthen supply chains. Accompanying technical assistance surveys have summarized findings on value-added tax (VAT) refunds, and discussions have focused on achieving double-digit growth through the restructuring of capital channels. This suggests that streamlining the financial system and ensuring more diverse funding channels are vital for supporting economic growth. The Vietnamese government aims to achieve its double-digit growth target through fine-tuning macroeconomic policies. Meeting this goal will require accelerated policy formulation and flexible responses aligned with market needs.