Inflation is projected at 3.7 per cent in 2025 and 3.8 per cent in 2026, below the central bank’s target of 4.5-5 per cent, an OECD release said.
The latest OECD Economic Survey of Vietnam projects that the country’s GDP will rise by 6.2 per cent in 2025 and 6 per cent in 2026, led by domestic demand.
Inflation is projected at 3.7 per cent in 2025 and 3.8 per cent in 2026, below the central bank’s target of 4.5-5 per cent.
The survey called for stronger reforms and deeper integration to support long-term, inclusive growth.
The survey, released in Hanoi recently, called for stronger reforms and deeper integration to support long-term, inclusive growth.
Key OECD recommendations include the effective use of macroeconomic tools to support balanced fiscal policy and broaden the tax base; strengthening the monetary system, credit policies, interest rates, and resource allocation; improving the social welfare system in areas such as wages, healthcare, and education; and formalising the informal economy and labour market.
The report also highlights sustainable development measures such as emissions trading systems and renewable energy promotion, and draws on international lessons to suggest ways to attract high-quality investment while enhancing domestic capacity, protecting intellectual property rights, and improving workforce quality.
Spending needs for the social security system and the climate transition are rising, while tax revenues are low at 19 per cent of GDP.
This imbalance calls for reforming the tax system to mobilise additional revenues, including by reducing tax expenditures in the personal income tax and the value-added tax, while improving budgetary governance and the transparency of fiscal accounts, the report noted.
Reducing informality through a combination of financial incentives and stricter enforcement will make growth more inclusive.
As 68.5 per cent of workers in the country are estimated to have informal jobs and the social security system features low coverage and benefit levels, recent reforms to enhance access to social assistance pensions and health care are welcome, the report noted.
Lower social security contributions for low-income workers and fewer administrative burdens for registering a business would foster formalization, it added.
Vietnam and OECD have implemented the memorandum of understanding on cooperation and the 2022–2026 Action Plan.
Fibre2Fashion News Desk (DS)