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Talking with Government Portal electronic newspaper reporters, Shantanu Chakraborty, the Asian Development Bank (ADB) Country Director for Vietnam, said that behind Vietnam’s positive growth figures lies a call for deeper reforms to ensure growth quality.
According to ADB, in the early-stabilization scenario, Vietnam is forecast to achieve growth “one of the highest in Southeast Asia.” Chakraborty said this “underscores the resilience of Vietnam’s economy in the face of global challenges.” He added that the current growth momentum is not merely a rebound from shocks, but reflects underlying factors strengthened through years of integration.
ADB also cautions that sustaining high and sustainable growth will require Vietnam to move beyond traditional growth drivers and shift toward raising productivity and improving the efficiency of the economy.
One of ADB’s key warnings is that although Vietnam has “deeply integrated into global value chains” and built a strong export-oriented production base, “the value added within the domestic sector remains low.” Chakraborty said the advantage of low labor costs “is not a sustainable long-term advantage,” underscoring the need to upgrade Vietnam’s position in the global value chain.
To upgrade that position, ADB highlights four factors: a transparent business environment, access to long-term capital, high-quality infrastructure, and a skilled workforce. These are presented as foundational conditions for Vietnam to shift from participating in value chains to creating greater value within them.
In the energy sector, Vietnam is described as an important player in Southeast Asia, with commitments to achieve net-zero emissions by 2050 and participation in initiatives such as JETP. However, ADB says the biggest challenge today is not the targets themselves, but the ability to implement projects.
Chakraborty emphasized that “for financiers, the most important factor is the financial viability of the project.” He noted that despite strong private investor interest, funds will be disbursed only when projects have an appropriate risk structure and a stable legal framework.
ADB also points to a strategic recommendation: “Increasing energy efficiency is a cost-saving approach far more effective than simply expanding new supply.” This suggests a shift from expanding supply toward optimizing energy use across the system.
ADB highlights a structural gap between project ideas and project implementation. Chakraborty said: “We need to shorten the time from project idea to ready-to-implement project.”
He noted that Vietnam does not lack projects, but many are not sufficiently prepared to attract capital—particularly private capital. Barriers include limitations in financial structuring, risk allocation, and adherence to international standards. In a more competitive investment environment, bringing projects to a “ready” state quickly is described as a decisive advantage.
Chakraborty said ADB values Vietnam’s recent institutional reform progress, including the central role assigned to the private sector and efforts to simplify procedures. “Institutional reform is the key to stable and sustainable growth for Vietnam.”
ADB expects that streamlining the administrative apparatus to two levels and strengthening decentralization to localities will improve decision-making speed. At the same time, it says Vietnam will need to enhance the capacity of local project preparation teams to meet international donor standards.
In the long term, ADB identifies human resources as decisive—particularly in areas such as artificial intelligence, fintech, and science and technology.
ADB’s overall message is that the challenge is not only achieving high growth, but sustaining growth based on productivity, value-added, and resilience. As traditional advantages narrow, the quality of reform—spanning institutions, infrastructure, and human resources—will determine Vietnam’s ability to advance toward its goal of becoming a high-income country by 2045.
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