ADB Experts Urge Vietnam's Economy to Shift from Quantity to Quality

Asian Development Bank (ADB) experts have indicated that a shift from "quantity" to "quality" is essential for Vietnam's economy to achieve sustained growth and its goal of becoming a high-income country by 2045. Shantanu Chakraborty, ADB Country Director for Vietnam, noted that while achieving strong growth in a single year is encouraging, maintaining both the pace and quality of growth over many years will be crucial for Vietnam to reach its long-term development objectives. He acknowledged Vietnam's status as Southeast Asia's fastest-growing economy but stressed the need to focus on future sustainability. ADB has signed a $100 million loan agreement with HDBank to expand access to finance for Micro, Small, and Medium-sized Enterprises (MSMEs) and is collaborating on advancing strategic projects with strong economic impact. While these initiatives support the "quantity" of economic growth, Chakraborty's recommendation suggests further development of these efforts to promote a transition to a higher value-added industrial structure. Under its one-party system, Vietnam's economic growth has been driven by government-led policies. In recent years, the country has experienced remarkable economic expansion, particularly in manufacturing, benefiting from supply chain shifts from China. However, this growth model also entails challenges such as efficient resource utilization, environmental considerations, and domestic income inequality. The ADB experts' remarks highlight the importance of enhancing the "quality" of this growth, signaling a potential direction for Vietnam's future economic policies.