Viet Nam

Subnational governments in Asia and the Pacific are key providers of the public services and infrastructure required to achieve the Sustainable Development Goals. Given this role, it is essential that policymakers and development partners understand and support the effective functioning of multi-level governance structures and subnational government finances across the region. This joint OECD-ADB report provides a comprehensive overview of subnational governments across Asia and the Pacific. It covers over 467,000 subnational governments from 26 countries, which represent 53% of the world’s population and 40% of global GDP. On average in 2020, subnational governments in the region accounted for 29% of total public expenditure (8.8% of GDP), 35% of total public revenue (8.5% of GDP) and 38% of public investment (2% of GDP). Harnessing unique data from the 3rd edition of the OECD-UCLG World Observatory on Subnational Government Finance and Investment, the analysis highlights how decentralisation and territorial reforms have reconfigured the structures and finances of subnational governments in the region. It covers a range of topics including fiscal rules, financial management capacity, priority-based budgeting, asset management and the use of public-private partnerships.

The Economic Outlook for Southeast Asia, China and India is a regular publication on regional economic growth and development in Emerging Asia. It focuses on the economic conditions of the Association of Southeast Asian Nations (ASEAN) member countries: Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam. It also addresses relevant economic issues in China and India to fully reflect developments in the region. This Update presents the region’s economic outlook, depicting rapidly changing trends and macroeconomic challenges amidst external headwinds.

Viet Nam has been quick to recover from the downturns caused by the COVID-19 pandemic, but it faces long-term economic challenges. Boosting labour productivity will be crucial to sustained high economic growth. Attracting further foreign investment and reaping the benefit of advanced technologies will require additional improvements to the business environment through simplifying administrative procedures. Levelling the playing field of competition between state-owned enterprises and private enterprises will also help to maintain Viet Nam’s attraction for international investors. The country is already among the leaders of digitalisation in Southeast Asia, with strong adoption of e-commerce, telemedicine and telework. Further investment in digital skills will be key to maintain this momentum. The authorities have committed to net zero carbon emissions by 2050 and are expanding renewable energy generation capacity. A comprehensive decarbonisation plan would facilitate the transition to greener growth.

Le Viet Nam a réalisé des progrès économiques remarquables ces dernières décennies, en maintenant une croissance économique élevée. L'économie s'est également montrée résistante aux chocs, notamment à la pandémie de COVID-19. Les réformes approfondies et continues menées depuis la fin des années 1980 ont été la clé de cette réussite économique. Néanmoins, face aux défis importants qui l'attendent, le Viet Nam doit redoubler d'efforts pour faire avancer les réformes structurelles qui consolideront encore les forces du marché. La population vieillit rapidement et l'augmentation de la productivité est une priorité urgente. Cela nécessitera de nouvelles réformes pour réduire la participation de l'État, en particulier dans les secteurs de réseau tels que les télécommunications, et pour garantir des conditions de concurrence équitables entre toutes les entreprises. Il est également essentiel d'approfondir l'intégration commerciale pour renforcer les chaînes d'approvisionnement dans un paysage économique mondial en pleine mutation. Malgré l'augmentation récente de l'utilisation du numérique, le Viet Nam doit améliorer les compétences des travailleurs en renforçant la formation professionnelle et l'éducation des adultes. L'engagement de parvenir à des émissions nettes nulles d'ici 2050 nécessite des changements radicaux dans le système économique. Pour réduire la dépendance à l'égard des combustibles fossiles, il convient d'arrêter les nouveaux investissements dans le charbon et d'accélérer la mise en œuvre d'un marché du carbone. Comme ces réformes nécessiteront des ressources fiscales supplémentaires, l'assiette fiscale devrait être élargie afin d'augmenter les recettes publiques. CHAPITRES THÉMATIQUES : RÉGLEMENTATION DES MARCHÉS DE PRODUITS ; NUMÉRISATION ; CROISSANCE VERTE

Skills are the key to shaping a better future, enabling countries and people to thrive in an increasingly interconnected and rapidly changing world. Megatrends such as globalisation, technological progress, demographic change, migration, and climate change, and most recently COVID-19, are reshaping work and society, generating a growing demand for higher levels and new sets of skills. The OECD Skills Strategy offers a strategic and comprehensive approach to assessing the skills challenges and opportunities of countries and regions for the purposes of helping them build more effective skills systems. The foundation of this approach is the OECD Skills Strategy Framework, which allows for an examination of what countries and regions can do better to: 1) develop relevant skills over the life course; 2) use skills effectively in work and in society; and 3) strengthen the governance of the skills system. This report, OECD Skills Strategy Southeast Asia: Skills for a Post-COVID Recovery and Growth, applies the OECD Skills Strategy framework to assess the performance of countries in Southeast Asia, identifies opportunities for improvement and provides recommendations based on in-depth desk analysis and consultations with stakeholder representatives.