According to the OECD, the openness of Vietnam’s economy leaves it exposed to geopolitical uncertainties and potential supply chain disruptions. Weathering significant challenges ahead, Vietnam needs to make additional efforts to advance structural reforms that will further strengthen market forces.
It suggested Vietnam consider providing targeted financial support to households strongly affected by high energy and food prices, prepare a concrete medium-term fiscal consolidation plan to further enhance revenue, expand the tax base, continue to simplify business regulations, and enhance digital skills.
To guide all economic sectors to a low carbon path, a clear and predictable long-term climate change strategy should be prepared. This strategy should include an energy sector reform which is crucial to upscale investment in renewable strategy, it said./.
