Vietnam on right track in pushing economic reform: IMF official

Vietnam is on the right track in accelerating its decisive economic reform, but an upgrade is needed to meet the government's aspirations of sustained, inclusive, and green growth, said an expert from the International Monetary Fund (IMF).

Vietnam on right track in pushing economic reform: IMF official hinh anh 1

A view of Ho Chi Minh City from above (Photo: vneconomy.vn)

Vietnam is on the right track in accelerating its decisive economic reform, but an upgrade is needed to meet the government's aspirations of sustained, inclusive, and green growth, said an expert from the International Monetary Fund (IMF).

According to Era Dabla-Norris, head of the IMF’s Article IV Consultation of the Department of Asia-Pacific, one of the most important challenges holding back productivity and hindering an efficient allocation of resources is the pervasive economic differences across firms, sectors, and workers.

Tackling these issues requires structural reforms to improve the business environment, enhance productivity, and boost potential growth, including policies to ensure a level playing field, particularly for small- and medium-sized enterprises, that supports firm and labour formalisation, spurs technology diffusion from foreign direct investment to domestic firms, and reduces labour skill-mismatches, Dabla-Norris was quoted by Dau tu (Investment Review) as saying.

Vietnam on right track in pushing economic reform: IMF official hinh anh 2

Era Dabla-Norris, head of the IMF’s Article IV Consultation of the Department of Asia-Pacific (Photo: baodautu.vn)

Besides, improving economic institutions, reducing corruption, promoting digital transformation, and greening the economy are other important areas of reform that Vietnam should tackle to achieve its economic ambitions going forward, she said, adding that medium-term growth prospects will depend critically on decisive reform implementation.

The IMF official added that the medium-term growth outlook will depend heavily on how reform is performed.

According to the expert, the bulk of the fiscal stimulus under the socio-economic recovery and development programme of Vietnam - especially in the field of public investment – is expected to play out in 2023 and this will further boost economic activity next year.

The data on activity in the second quarter of 2022 points to a much stronger, more frontloaded recovery than anticipated on both the domestic and external fronts, she said.

The programme, to be executed over 2022-2023, includes a wide range of policies, from near-term fiscal measures such as temporary tax reliefs, interest rate subsidies, and liquidity support for firms and households, to longer-term policies that include spending on healthcare, education, digital and physical infrastructure.

The package is well suited to entrench the recovery after the large economic shock in the second half of 2021, she noted.

If implemented effectively, the programme will spur infrastructure investment, and create momentum for reforms in areas under its agenda, such as climate change, digital transformation, innovation, financial inclusion, business climate, education, and the labour market, she noted.

These will play a critical role in limiting economic scarring – partially compensating for slower capital accumulation during the pandemic – and can boost productivity, she added.

The IMF lowered its growth forecast for the global economy this year, but believed Vietnam’s recovery will be boosted by the implementation of its socio-economic development and recovery programme.

Francois Painchaud, IMF Representative in Vietnam, recently has projected that the country's GDP will grow at 6% in 2022 and 7.2% in 2023.

Meanwhile, the Asian Development Bank (ADB) forecast that Vietnam's economic growth will recover to 6.5% in 2022 and reach 6.7% in 2023./.

Source: VNA
en.vietnamplus.vn

Related News

Will Vietnam

Will Vietnam's seafood pass the IUU inspection in April 2024?

VCN - The 5th inspection on combating illegal, unreported, and unregulated (IUU) fishing in Vietnam by the EC is scheduled for April 2024. Localities are focusing on conclusively addressing existing limitations and restrictions, with an emphasis on implementing urgent tasks and solutions, particularly by April 30, 2024.
Can Vietnam

Can Vietnam's Fisheries Pass the IUU Inspection in April 2024?

VCN - The upcoming fifth inspection by the European Commission (EC) on Illegal, Unreported, and Unregulated (IUU) fishing in Vietnam, set for April 2024, has prompted local authorities to intensify efforts to address existing challenges and limitations. They are prioritizing the execution of critical tasks and solutions from now until April 30, 2024, to meet the stringent requirements.
Solutions for safe international trade transactions

Solutions for safe international trade transactions

VCN - The increasingly strong trend of opening up international economic integration has been opening up many trade opportunities for the Vietnamese business community. This is an opportunity to promote the export of Vietnamese goods to potential markets around the world, but the larger the "playing field", the greater the associated risks. Around this issue, Mr. Hoang Minh Chien (photo), Deputy Director of the Department of Trade Promotion, Ministry of Industry and Trade, shared about solutions for businesses to exploit these opportunities.
Vietnam-Indonesia trade achieves about US$ 14 billion

Vietnam-Indonesia trade achieves about US$ 14 billion

VCN – Indonesia is Vietnam's leading trading partner in Southeast Asia.

Latest News

PM attends Vietnam - Australia Business Forum in Melbourne

PM attends Vietnam - Australia Business Forum in Melbourne

Prime Minister Pham Minh Chinh attended the Vietnam - Australia Business Forum in Melbourne on March 5 morning (local time) as part of his ongoing trip to Australia to attend the ASEAN - Australia Special Summit and pay an official visit to Australia.
FDI sector remains export pillar of Vietnam’s economy

FDI sector remains export pillar of Vietnam’s economy

The foreign direct investment (FDI) sector maintained its role as an export pillar of Vietnam’s economy with revenue of 43.2 billion USD in the first two months of this year, up 14.7%, and accounting for 72.8% of the country’s total export value.
Growth engines rev up, fuelling recovery hopes

Growth engines rev up, fuelling recovery hopes

With noteworthy signs of recovery in the first two months of this year, the national economy is expected to bounce back quickly this year.
Vietnam’s FDI inflow surges 38.6% in two months

Vietnam’s FDI inflow surges 38.6% in two months

Total newly-registered foreign investment capital, adjusted and contributed capital to buy shares and buy contributed capital of foreign investors totalled 4.29 billion USD as of February 20, up by 38.6% compared to the same period in 2023. The disbursement of FDI capital is projected at some 2.8 billion USD, reflecting a 9.8% increase against the same period last year.

More News

PM Pham Minh Chinh’s Australia trip “incredibly important”: Ambassador

PM Pham Minh Chinh’s Australia trip “incredibly important”: Ambassador

Australian Ambassador to Vietnam Andrew Goledzinowski has emphasised the significance of the upcoming trip to Australia by Prime Minister Pham Minh Chinh in an interview granted to the Vietnam News Agency (VNA).
SOEs asked to play more active role in implementation of strategic breakthroughs

SOEs asked to play more active role in implementation of strategic breakthroughs

Prime Minister Pham Minh Chinh on March 3 called on state-owned enterprises (SOEs) to engage more intensively in the implementation of strategic breakthroughs regarding institutional perfection, personnel training and infrastructure development.
Positive socio-economic results recorded so far: Government meeting

Positive socio-economic results recorded so far: Government meeting

Vietnam saw a continuous recovery trend and positive socio-economic results across all fields in February and the first two months of this year, heard the Government regular meeting held in Hanoi on March 2 under the chair of Prime Minister Pham Minh Chinh.
Vietnam to join conference on global agricultural supply chain connection

Vietnam to join conference on global agricultural supply chain connection

Vietnamese businesses operating in agriculture will attend the Agricultural Supply Chain Asia conference (ASCA) co-hosted by the US Grains Council, the US Wheat Associates, and the US Soybean Export Council from March 18 – 20, according to the Vietnam Business Council for Sustainable Development (VBCSD) under the Vietnam Chamber of Commerce and Industry (VCCI).
Vietnam - most investor friendly country in ASEAN: US paper

Vietnam - most investor friendly country in ASEAN: US paper

Vietnam is the most investment worthy place in ASEAN, based on valid and practical grounds where improved economic diversification, international integration, reformed investment legislation and good economic policy must be counted, according to an article recently published on the US’s mondaq.com.
Việt Nam has advantages in exports to Europe, America

Việt Nam has advantages in exports to Europe, America

Demand in the global market, including Europe and America, is gradually recovering because inflation had begun to subside since the end of 2023.
Việt Nam moves up significantly in economic freedom ranking while global average falls

Việt Nam moves up significantly in economic freedom ranking while global average falls

Việt Nam has the opportunity to become one of Asia’s leading economic nations if the country continues on the path of market economy reforms.
The Prime Minister instructed state-owned enterprises to exceed assigned business targets

The Prime Minister instructed state-owned enterprises to exceed assigned business targets

VCN - Prime Minister Pham Minh Chinh has just signed Directive 07/CT-TTg on innovating governance, improving production and business efficiency and strongly promoting investment and development of corporations and state-owned enterprises (SOEs).
Vietnam, Japan cooperate in IP protection, counterfeit goods prevention

Vietnam, Japan cooperate in IP protection, counterfeit goods prevention

Vietnamese officials at a workshop in Hanoi on February 28 called on Japan to continue its support to Vietnam in protecting and enforcing intellectual property (IP) rights, making IP a driving force for economic development.
Read More

Your care

Latest Most read
PM attends Vietnam - Australia Business Forum in Melbourne

PM attends Vietnam - Australia Business Forum in Melbourne

Prime Minister Pham Minh Chinh attended the Vietnam - Australia Business Forum in Melbourne on March 5 morning (local time) as part of his ongoing trip to Australia to attend the ASEAN - Australia Special Summit and pay an official visit to Australia.
FDI sector remains export pillar of Vietnam’s economy

FDI sector remains export pillar of Vietnam’s economy

The foreign direct investment (FDI) sector maintained its role as an export pillar of Vietnam’s economy with revenue of 43.2 billion USD in the first two months of this year, up 14.7%, and accounting for 72.8% of the country’s total export value.
Growth engines rev up, fuelling recovery hopes

Growth engines rev up, fuelling recovery hopes

With noteworthy signs of recovery in the first two months of this year, the national economy is expected to bounce back quickly this year.
Vietnam’s FDI inflow surges 38.6% in two months

Vietnam’s FDI inflow surges 38.6% in two months

Total newly-registered foreign investment capital, adjusted and contributed capital to buy shares and buy contributed capital of foreign investors totalled 4.29 billion USD as of February 20, up by 38.6% compared to the same period in 2023. The disbursement of FDI capital is projected at some 2.8 billion USD, reflecting a 9.8% increase against the same period last year.
PM Pham Minh Chinh’s Australia trip “incredibly important”: Ambassador

PM Pham Minh Chinh’s Australia trip “incredibly important”: Ambassador

Australian Ambassador to Vietnam Andrew Goledzinowski has emphasised the significance of the upcoming trip to Australia by Prime Minister Pham Minh Chinh in an interview granted to the Vietnam News Agency (VNA).
Mobile Version