Publication: Viet Nam 2045: Breaking Through - Institutions for a High-Income Future
Loading...
Other Files
204 downloads
Date
2025-05-22
ISSN
Published
2025-05-22
Author(s)
Editor(s)
Abstract
While Viet Nam’s institutions may not have the forms that exist in other countries, it is the functions of institutions, rather than specific forms, that are important. This study adopts a framework based on the functions of institutions in the quest to support an evolving role of the state: market-creating, market-stabilizing, market-regulating, market-complementing, and market-legitimizing institutions, as well as the institutions for a capable and accountable state. Part I of this study will first survey the landscape of institutions in Viet Nam according to this framework. Some institutions may be essential for growth in the long term, but do not seem to be binding constraints to Viet Nam’s growth. Others are more foundational and will be the subject of deeper dives in Parts II and III of this report: those for a growth-supporting state (market-complementing and market-regulating) and those for the state’s capability to deliver with efficiency and accountability. This emphasis is also consistent with the experience of countries that escaped the middle-income trap—many of which did so by improving the predictability of the implementation of laws, by boosting quality and quantity of public investment, and by improving the quality and motivation of their public administration.
Link to Data Set
Citation
“World Bank. 2025. Viet Nam 2045: Breaking Through - Institutions for a High-Income Future. © World Bank. http://hdl.handle.net/10986/43233 License: CC BY-NC 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Related items
Showing items related by metadata.
Publication Regulatory Capacity Review of Tanzania(Washington, DC, 2010)Regulatory reform has emerged as an important policy area in developing countries. For reforms to be beneficial, regulatory regimes need to be transparent, coherent, and comprehensive. They must establish appropriate institutional frameworks and liberalized business regulations; enforce competition policy and law; and open external and internal markets to trade and investment. This report analyses the institutional set-up and use of regulatory policy instruments in Tanzania. It is one of five reports prepared on countries in East and Southern Africa (the others are on Kenya, Uganda, Rwanda and Zambia), and represents an attempt to apply assessment tools and the framework developed by the Organization for Economic Cooperation and Development (OECD) in its work on regulatory capacity and performance to developing countries.Publication Proposed Coastal Cities Environmental Sanitation Project--Viet Nam(World Bank, Washington, DC, 2005-10)A solid waste management (SWM) preparation mission was carried out mid-2004 for the World Bank Coastal Cities Environmental Sanitation Project (CCESP). The purpose of the mission was to assess the SEM needs of the cities of Dong Hoi, Nha Trang, and Quy Nhon over a fifteen-year planning horizon, taking into account the quantity, character, and distribution of solid wastes, disposal alternatives and management systems governing administration and finance. The World Bank is now supporting a consultancy, the objectives of which are to present a range of options for use of the private sector in solid waste collection and septage management, to agree a preferred approach for each CCESP city, and then to develop a detailed implementation program. The consultancy is to be conducted over two separate trips to the three project cities. The first trip was conducted between 13 and 30 September, 2005 and included a visit to Da Nang to discuss private sector participation initiatives introduced in that city as part of the World Bank’s Three Cities Sanitation Project. This paper presents the initial findings of the public-private partnership (PPP) consultancy team and addresses each key activity. The findings of the visit to Da Nang are also included in this paper.Publication Regulatory Capacity Review of Rwanda(Washington, DC, 2010)Regulatory reform has emerged as an important policy area in developing countries. For reforms to be beneficial, regulatory regimes need to be transparent, coherent, and comprehensive. They must establish appropriate institutional frameworks and liberalized business regulations; enforce competition policy and law; and open external and internal markets to trade and investment. This report analyses the institutional set-up and use of regulatory policy instruments in Rwanda. It is one of five reports prepared on countries in East and Southern Africa (the others are on Kenya, Uganda, Tanzania and Zambia), and represents an attempt to apply assessment tools and the framework developed by the Organization for Economic Cooperation and Development (OECD) in its work on regulatory capacity and performance to developing countries.Publication Bosnia and Herzegovina(World Bank, Washington, DC, 2015-06)This Technical Note was prepared in the context of a joint World Bank-IMF Financial Sector Assessment Program mission in Bosnia and Herzegovina during October-November 2014. Bosnia’s capital markets are currently small, but they have the potential to play a more important role in the country’s future.Publication Somalia Joint Needs Assessment : Macroeconomic Policy Framework and Data Development Cluster Report(World Bank, Washington, DC, 2006-08)Since 1991, the Somali economy has suffered from droughts, the absence of government, and local conflicts. Unlike the 1970s and 1980s when most of the output of the small industrial sector and many services were provided by the public sector, there has been significant (but unmeasured) private investment in commercial ventures, including in trade and marketing; money transfer services; transport; communications; airlines; telecommunications; other services including construction and hotels; education and health; and fishery equipment. In regard to the macroeconomic policy framework, the short to medium-term objectives are to: establish and maintain macroeconomic stability; develop a stable currency and a sound and growing public revenues base; establish core civil service institutions along with accountable budgetary processes, public finance management, and revenue systems; and reestablish financial services. In addition, it is important to establish data systems to secure the data needed to monitor social and economic developments and to inform sound policy and institutional development.
Users also downloaded
Showing related downloaded files
Publication World Bank East Asia and Pacific Economic Update, April 2025: A Longer View(Washington, DC: World Bank, 2025-04-24)East Asia and Pacific (EAP) outpaced most regions in economic growth in 2024. To sustain this momentum and generate jobs, EAP countries must navigate global uncertainty and tackle long-term challenges tied to shifting global integration, climate change, and demographic trends. In its 2025 Regional Economic Update, the World Bank projects that growth in EAP will slow down to 4.0 percent in 2025, compared to 5.0 percent in 2024. Uncertainty around these projections remains high, and growth outcomes will depend on global developments and national policy choices.Publication World Bank East Asia and the Pacific Economic Update, October 2024: Jobs and Technology(Washington, DC: World Bank, 2024-10-07)East Asia and the Pacific, seen in the context of the world economy, stands out as a paragon of development. Despite the recent ravages of the pandemic and the persistent tensions of geopolitics, the region is growing at stably high rates and the benefits are widely shared. But compared to its own past and potential, the region’s economic performance is less impressive. Growth is still below pre-pandemic rates, except in Indonesia, and output has not yet recovered to pre-pandemic levels in several countries, especially in the Pacific. This Economic Update highlights three key developments: shifting regional growth dynamics as China’s growth slows, changing trade patterns due to global tensions, and the impact of technologies such as robots, artificial intelligence, and digital platforms on jobs. The report calls for productivity-enhancing structural reforms to strengthen domestic growth drivers through; deeper international trade agreements to foster more open and stable trade regimes; deeper technical, digital, and soft skills while addressing impediments to labor mobility, factor price distortions and expanding social protection for workers in the digital informal economy to boost productivity and employment.Publication Taking Stock, March 2025: Electrifying Journeys(Washington, DC: World Bank, 2025-03-12)Viet Nam’s real GDP growth reached 7.1 percent in 2024, driven by a strong rebound in exports, outpacing most regional peers. External demand strongly rebounded in 2024 after a contraction in 2023. Final consumption and investment growth also accelerated in 2024 reaching 6.6 and 7.2 percent, respectively, supporting the growth momentum. However, private consumption remained a moderate driver of aggregate demand relative to the region (54 percent of GDP compared to a median of 61.7 percent, respectively) as household savings increased amid heightened uncertainty in recent years. Viet Nam’s GDP growth is forecast to moderate to 6.8 percent in 2025 before settling at 6.5 percent in 2026. The rebound in exports in 2024 is expected to ease in 2025 and further into 2026 due to projected economic slowdown in China and the United States in the near-team - Viet Nam’s largest trade partners – and uncertain global trade prospects from shifts in trade policy. Domestic activities and services are expected to continue to firm up in 2025 and into 2026 as the real estate market recovery gathers steam. The outlook for Viet Nam remains positive but with heightened uncertainties. Given Viet Nam’s openness to the global economy, the main uncertainty stems from slower-than-expected global growth and trade disruptions, particularly among major trading partners such as the United States, European Union, and China. Such developments, including heightened uncertainties from trade policy shifts and deepening trade fragmentation, could impact Viet Nam’s manufacturing exports, industrial production, and growth. On the other hand, increased public investment could further support demand and contribute to growth. An accelerated recovery in the real estate market thanks to faster project clearance could further boost domestic demand. The special focus of this edition focuses on preparing e-mobility transition in the transport sector. This analysis examines the critical steps required to decarbonize road transportation in Vietnam by using electric vehicles and rolling out a network of public charging stations. It explores the implications of this transition on electricity demand, greenhouse gas emissions, and job creation. The report presents a set of recommendations to achieve the Government’s ambitious target of having 50 percent of urban vehicles and 100 percent of urban buses and taxis powered by electricity or green energy by 2030, and subsequently reaching 100 percent for all road vehicles by 2050.Publication Business Ready 2024(Washington, DC: World Bank, 2024-10-03)Business Ready (B-READY) is a new World Bank Group corporate flagship report that evaluates the business and investment climate worldwide. It replaces and improves upon the Doing Business project. B-READY provides a comprehensive data set and description of the factors that strengthen the private sector, not only by advancing the interests of individual firms but also by elevating the interests of workers, consumers, potential new enterprises, and the natural environment. This 2024 report introduces a new analytical framework that benchmarks economies based on three pillars: Regulatory Framework, Public Services, and Operational Efficiency. The analysis centers on 10 topics essential for private sector development that correspond to various stages of the life cycle of a firm. The report also offers insights into three cross-cutting themes that are relevant for modern economies: digital adoption, environmental sustainability, and gender. B-READY draws on a robust data collection process that includes specially tailored expert questionnaires and firm-level surveys. The 2024 report, which covers 50 economies, serves as the first in a series that will expand in geographical coverage and refine its methodology over time, supporting reform advocacy, policy guidance, and further analysis and research.Publication Vietnam Country Climate and Development Report(Washington, DC: World Bank, 2022-07-01)Like most countries in the world, Vietnam is increasingly seeing its development affected by climate change. With a coastline of 3,260 kilometers that includes major cities and production sites, Vietnam is highly exposed to sea-level rise. Climate change impacts on the Vietnamese economy and national welfare are already significant—about 3.2 percent of gross domestic product (GDP) in 2020—and they are expected to escalate rapidly even if greater efforts are made to mitigate future climate change around the world. Vietnam has historically had very low greenhouse gas (GHG) emissions, but over the past two decades, it has seen some of the fastest emissions growth rates in the world. From 2000 to 2015, as GDP per capita increased from $390 to $2,000, per capita emissions more than quadrupled. Vietnam’s GHG emissions are associated with toxic air pollution in many of its cities today, with implications for health and labor productivity. At the UN Climate Change Conference in Glasgow in November 2021 (COP26), the Prime Minister made several commitments, including an ambitious target of reducing emissions to net zero by 2050. Vietnam’s increased attention to climate change and the environment reflects the growing economic costs of resource depletion and climate impacts, which have already started to harm trade and investment— two key drivers of the nation’s robust growth and job creation in recent decades. Vietnam now faces critical questions about how to respond to climate change: How intensively should it work to adapt to previous and predicted damages caused by climate change, given the uncertainty of global mitigation efforts? How much will it cost to reduce GHG emissions? How can the private sector be mobilized to help achieve Vietnam’s climate goals? Are there trade-offs between adaptation and mitigation investments? Are there trade-offs between economic growth, poverty reduction, and climate action, and how can they be managed? Which sectors and regions should be prioritized? What are the distributional implications of a low-carbon, climate-resilient growth path? The Vietnam Country and Climate Development Report (CCDR) investigates these questions. One of the first in a series of country-level diagnostics produced by the World Bank Group (WBG) under its 2021–2025 Climate Change Action Plan, the CCDR examines the adaptation and mitigation challenges faced by Vietnam. It pays special attention to policy trade-offs and provides recommendations to help policy makers prioritize among a range of options, recognizing uncertainties about future climate change impacts and the availability of technology and financing.