Publication: Taking Stock, December 2017: An Update on Vietnam’s Recent Economic Developments
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2017-12
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2017-12
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The report examines how Vietnam’s economy has fared in a strengthening global economy in 2017, the drivers of Vietnam’s recent economic performance, growth prospect and the country’s progress in structural reform, among others. It also includes a special section on how to improve efficiency and equity of public spending, as budget deficit is being contained.
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“World Bank. 2017. Taking Stock, December 2017: An Update on Vietnam’s Recent Economic Developments. © World Bank. http://hdl.handle.net/10986/29032 License: CC BY 3.0 IGO.”
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Publication Taking Stock, December 2013(Hanoi, 2013-12)Macroeconomic stability in Vietnam is improving, underpinned by moderating inflation and strengthening external accounts. Headline Consumer Price Index (CPI) inflation has stabilized, aided by subdued credit growth and easing of food price increases. The decline in core inflation has been more gradual. Pressure on the Vietnamese currency has also eased substantially. A sustained recovery in Gross Domestic Product (GDP) growth remains hampered however by slow-moving structural reforms and global uncertainty. With rising pressures on the budget, the government is faced with some crucial fiscal policy choices, as it seeks to balance the objectives of economic expansion and macroeconomic stability. This paper explores crucial issues such as trade facilitation, competitiveness and growth, poverty and inequality, corruption and economic growth in Vietnam, the external economic environment, and recent economic developments in Vietnam.Publication Taking Stock, July 2014(Hanoi, 2014-07)Global growth is projected to pick up to 3.4 percent in 2015 and 3.5 percent in 2016, propelled by highincome countries. Developing country growth will benefit from these tailwinds, with growth projected to increase from 4.8 percent in 2014 to 5.5 percent in 2016 broadly in line with potential. Global growth projections for 2014, however, have been marked down from 3.2 percent to 2.8 percent on account of the bumpy start this year, buffeted by poor weather in the United States, financial market turbulence and the conflict in Ukraine. The outlook for the East Asia and the Pacific region continues to reflect several counterbalancing factors, including domestic policy adjustment, volatile financing conditions, political crisis in Thailand, and sustained recovery in global demand for exports. Regional GDP growth is expected to slow down slightly to 7.0 percent by 2016, about 2 percentage points slower than the pre-crisis boom years but broadly in line with potential. Regional risks include volatility and eventual tightening of global financing conditions, possible setbacks in China s restructuring and a weaker contribution from net exports than assumed in the baseline. Potential escalation of regional political tensions presents additional risk to the outlook.Publication Taking Stock, December 2012(World Bank, Hanoi, 2012-12)This paper includes three parts: external economic environment, part one includes: global environment, regional environment, and risks. Vietnam's recent economic development, part two includes: a relatively stable macroeconomic situation, growth at record low, booming exports despite a slowing economy, sharp turnaround in external accounts, inflation dynamics, monetary policy, fiscal policy, and near-term outlook. Structural reforms and medium-term outlook, part three includes: context, restructuring of state-owned enterprises, banking Sector development, and poverty reduction.Publication Taking Stock, December 2014(Washington, DC, 2014-12)The global economy is showing signs of recovery, but at an uneven pace; global growth is expected to rise modestly to 2.6 percent in 2014, and an average 3.3 percent in 2015-17. The gradual strengthening of activity in the Euro Area and especially the US will boost demand for exports from developing East Asia and Pacific (EAP), helping the region sustain its growth performance. There are early signs of firming up of economic recovery in Vietnam. GDP growth picked up to a relatively brisk 6.2 percent (y-o-y) in the third quarter of 2014, contributing to an overall growth rate of 5.6 percent for the first nine months of the year. Credit growth continues to come in below target, hampering the State Bank of Vietnam's efforts to carry out credit expansion to support economic growth. The Government has taken some important measures in 2014 to improve business conditions, which are expected to bear fruit from 2015 onward. The Government issued Resolution 19 (March 18, 2014), which prioritizes shortening the time for processing and completion of administrative procedures, reducing administrative costs, and strengthening transparency and accountability of state administrative agencies. The Financial Sector Assessment Program (FSAP) provides a comprehensive framework to identify financial system vulnerabilities and develop appropriate policy responses. Recognizing its importance, in July 2012 the Government of Vietnam invited the World Bank and the IMF to initiate an FSAP for Vietnam. In recent years the Vietnamese economy had shown signs of corporate and financial distress, and slowdown in GDP growth. In response to this, the government announced a comprehensive reform program designed to address the problems faced by the financial and corporate sectors. The FSAP provides a broad set of policy recommendations that can be used to operationalize the SEDP and the banking restructuring program. The recommendations include recapitalization plans, the workout of NPLs, regulatory and other reforms, and the temporary extension of the safety net.Publication Taking Stock, December 2015(Hanoi, 2015-12)Vietnam’s economy has weathered the recent turbulence in the external environment fairly well, reflecting resilient domestic demand and robust performance of export-oriented manufacturing. Growth further accelerated to 6.5 percent (year-on-year) in the first three quarters of 2015 (after coming in at 6 percent last year). Low inflation and strengthening consumer confidence supported an uptick in private consumption while investment was lifted by robust foreign direct investment, rising government capital expenditures, and a recovery of credit growth. Exports of the foreign-invested manufacturing sector also accelerated, but this was offset by a slowdown of commodity exports and a surge in imports of capital and intermediate goods, reflecting stronger investment and the high import content of manufacturing exports.
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Many of them have done well since the 1990s to escape low-income levels and eradicate extreme poverty, leading to the perception that the last three decades have been great for development. But the ambition of the more than 100 economies with incomes per capita between US$1,100 and US$14,000 is to reach high-income status within the next generation. When assessed against this goal, their record is discouraging. Since the 1970s, income per capita in the median middle-income country has stagnated at less than a tenth of the US level. With aging populations, growing protectionism, and escalating pressures to speed up the energy transition, today’s middle-income economies face ever more daunting odds. To become advanced economies despite the growing headwinds, they will have to make miracles. Drawing on the development experience and advances in economic analysis since the 1950s, World Development Report 2024 identifies pathways for developing economies to avoid the “middle-income trap.” It points to the need for not one but two transitions for those at the middle-income level: the first from investment to infusion and the second from infusion to innovation. Governments in lower-middle-income countries must drop the habit of repeating the same investment-driven strategies and work instead to infuse modern technologies and successful business processes from around the world into their economies. This requires reshaping large swaths of those economies into globally competitive suppliers of goods and services. Upper-middle-income countries that have mastered infusion can accelerate the shift to innovation—not just borrowing ideas from the global frontiers of technology but also beginning to push the frontiers outward. This requires restructuring enterprise, work, and energy use once again, with an even greater emphasis on economic freedom, social mobility, and political contestability. Neither transition is automatic. The handful of economies that made speedy transitions from middle- to high-income status have encouraged enterprise by disciplining powerful incumbents, developed talent by rewarding merit, and capitalized on crises to alter policies and institutions that no longer suit the purposes they were once designed to serve. Today’s middle-income countries will have to do the same.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. 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