ADB Country Director hails Viet Nam's strong macroeconomic fundamentals, robust public investment

Sharing his assessment on Viet Nam's economic prospects for the 2026–2027 period, Chakraborty noted that under an early stabilization scenario, growth is projected at around 7.2 percent in 2026 and about 7 percent in 2027—the highest rate in Southeast Asia.

However, he emphasized that sustaining high-quality and resilient growth would require a stronger focus on improving productivity and production efficiency, adding that strengthening financial and capital markets to ensure access to long-term financing would be essential.

Most importantly, he highlighted the need to enhance energy security and accelerate green transition, domestically sourced energy to reduce vulnerability to external shocks. Reforms in these three areas, he suggested, would be critical.

Four key priorities for Viet Nam to move up value chain

Regarding Viet Nam's position in global and regional supply chains, the ADB Country Director observed that the country is already deeply integrated, having built a strong export-oriented manufacturing base over decades that has successfully attracted foreign direct investment.

Nonetheless, he pointed out that domestic value addition remains relatively low, and reliance on low labor costs is not a sustainable long-term advantage. He stressed that Viet Nam needs to move up the value chain by increasing the value it adds within supply chains.

To achieve this, he identified four key priorities. First, improving the business environment with greater transparency and ease of doing business to attract high-quality investors.

Second, expanding access to long-term capital through deeper and more developed capital markets, supported by appropriate regulatory reforms.

Third, continuing to upgrade infrastructure, which remains a decisive factor in sustaining investment inflows.

Finally, developing a highly skilled workforce, particularly in emerging areas such as AI, fintech, and green growth, which are essential for higher value-added activities.

He concluded that reforms across these four pillars—business environment, infrastructure, access to capital, and human capital—would be crucial for Viet Nam to strengthen its role in global supply chains and enhance economic resilience over the coming years.

Viet Nam takes right steps toward greener, more sustainable growth

In terms of energy transition, the ADB Country Director said, Viet Nam, as a major consumer of fossil fuels, plays a very important role in Southeast Asia and has been taking the right steps toward a greener and more sustainable growth model.

He noted that ADB's Country Partnership Strategy for Viet Nam (2023) places green growth as a key pillar of its support. Viet Nam's commitment to achieving net-zero emissions by 2050 and its participation in the Just Energy Transition Partnership (JETP) were highlighted as strong signals of ambition, with early signs of success emerging as more projects become financially viable.

However, he stressed that further efforts are needed to improve the bankability of projects, which remains a primary concern for both financial institutions and private investors. While investor interest is strong, more emphasis must be placed on structuring projects in a way that meets financing requirements.

From ADB's perspective, he reaffirmed the institution's strong commitment, including a US$10 billion pledge to support the ASEAN Power Grid—an initiative aimed at advancing renewable energy as well as regional power transmission and distribution.

Chakraborty said, as a key ASEAN member, Viet Nam is expected to benefit significantly from this initiative./.