WB release two new reports on Vietnam's furture development

The World Bank (WB) on May 22 released two new reports titled “Vietnam 2045: Breakthrough - Institutions for a High-Income Future” and “Vietnam 2045: Growing greener -  Pathways to a Resilient and Sustainable Future”

In the “Vietnam 2045: Breakthrough - Institutions for a High-Income Future” report, WB emphasized that to sustain high growth rates, Vietnam needs to strengthen its legal framework and regulatory environment, while improving the efficiency of public investment in terms of both scale and quality. 

Notably, several key institutional reforms will be decisive for Vietnam’s next development phase. Among them, public investment management must see substantial improvements, from project selection to implementation and oversight.

At the same time, refining the legal framework and regulations will help build a business environment that is more transparent, stable, and predictable. Local governance must also be enhanced through greater autonomy, stronger accountability, and improved coordination among provinces.

In order to become a high-income nation by 2045, Vietnam also needs to build an efficient, accountable civil service with an appropriate size, suitable compensation, and backed by institutions that ensure due process, transparency, and independent oversight, the report noted.

According to Ms. Mariam J. Sherman, World Bank (WB)’s Country Director for Vietnam, Cambodia, and Laos, the journey toward Vietnam’s 2045 high-income goal has clearly demonstrated the critical role of institutions in ensuring the country’s sustainable growth.

“Vietnam’s recent reform efforts show strong commitment, but to achieve the high-income goal, Vietnam must go even further with an institutional breakthrough to unlock the full potential of the private sector to drive growth and generate quality jobs for the people,” Ms. Sherman added.

In parallel with institutional reforms, the “Vietnam 2045: Growing greener -  Pathways to a Resilient and Sustainable Future” report emphasized that investment in climate adaptation is key to minimizing the risks from weather-related shocks to Vietnam’s agriculture, businesses, and production infrastructure.

The WB report noted that if sea levels rise by 75 to 100 cm, nearly half of the Mekong Delta could be submerged by mid-century. The WB's survey also revealed that around 75 per cent of businesses in Vietnam’s two main export sectors including garments and electronics, are operating in areas regularly affected by high temperatures, placing 1.3 million workers in vulnerable conditions.

Therefore, without timely adaptation measures, climate change could affect Vietnam’s economy, the report remarked.

On this issue, Ms. Sherman recommended that Vietnam begin taking steps now to protect land, communities, and infrastructure from climate-related shocks. She emphasized the importance of developing appropriate mechanisms and policies to encourage businesses and citizens to proactively adapt, and to integrate climate risk management into all sectors of the economy.

The report also recommends that Vietnam should accelerate the energy transition, taking advantage of renewable energy technologies with increasingly competitive costs to improve energy efficiency in the industrial sector

Along with that, Vietnam should tap into its marine economic potential to foster a greener future and enhance climate resilience. In which, expanding renewable energy, especially offshore wind power, will be an important opportunity for Vietnam to gradually reduce its dependence on fossil fuels.