Country Director of the Asian Development Bank (ADB) in Viet Nam Andrew Jeffries (L) - Photo: VGP/Nhat Bac

Country Director of the Asian Development Bank (ADB) in Viet Nam Andrew Jeffries made that above statement at a meeting aimed at seeking ways to stabilize macro-economy, which was chaired by Prime Minister Pham Minh Chinh on September 12.

Economic developments in Viet Nam in 2022 are taking place against a backdrop of slowing global economic growth, noted Andrew Jeffries.

Overall, Viet Nam has withstood the economic shocks entailed by the pandemic well. This has owed a lot to the flexible but bold handling of the health crisis.

Domestic demand has been particularly solid overall. Retail sales data indicate that consumption continued rebounding strongly in the first half of 2022 after the contraction in the third quarter of 2021. Investment has buttressed growth.

Viet Nam's low infection rates have contributed to better business prospects for foreign investors. Business activity has also been resilient, with industrial production recovering steadily.

ADB maintains the growth forecasts for Viet Nam made in ADB 2022, 6.5 percent for 2022 and 6.7 percent for 2023, the ADB Country Director emphasized.

Viet Nam needs to further improve business climate, facilitate digital transformation

Macroeconomic policy should help enhance economic resilience, said Andrew Jeffries, adding that in the short run, accelerate the implementation of the Economic Recovery and Development Program endorsed by the National Assembly in January 2022.

The priority is to minimize the impact of high energy prices through targeted support for vulnerable households, he suggested.

In the medium term, it is crucial to strengthen macroeconomic policy frameworks by enhancing fiscal sustainability through expanding the tax base. Social protection also needs to be strengthened and economic informality reduced.

To maintain high economic growth from the recovery, Viet Nam needs to further improve the business climate and facilitate the digital transformation.

Reinvigorating business dynamism requires further streamlining regulations, increasing the transparency of regulatory processes and leveling the playing field among all market participants, including between state-owned enterprises and private entities.

To achieve the objective of net-zero emissions by 2050, sustaining high levels of investment in renewable energy and pursuing greater energy efficiency will be needed, he recommended.

This can be achieved through a comprehensive policy approach that prioritizes effective public and private investment, conducive regulatory settings and market prices that better reflect carbon content. 

ADB affirms utmost support for Viet Nam's energy transition to achieve the net zero emissions and offer technical assistance support for Viet Nam to undertake the feasibility of Energy Transition Mechanism, which can outline different scenarios for energy transition in Viet Nam, the ADB Country Director stated.