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Vietnam’s GDP could be 1.23% higher in 2045 under stronger climate policies, OECD model finds

KROV newsroom

10 Nov 2026, 1:39 pm IST1 min read

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Vietnam’s economy could be 1.23% larger in 2045 than under current policies if the country and its trading partners move faster to cut emissions, according to an OECD study released on November 10. The figure compares the level of GDP in two modelled scenarios. [evidence-1] [evidence-2]

The OECD’s stronger-policy scenario assumes Vietnam invests more in energy, expands renewables faster, phases out coal faster and extends carbon pricing from 2029. It also assumes stronger climate action abroad. The model links the GDP gain to higher energy investment and stronger export demand as trading partners shift to cleaner energy. [evidence-1] [evidence-2]

The study suggests Vietnam consider revising its environmental protection tax to reflect the carbon in fuels as the country rolls out its emissions trading system. The tax change is a policy option in the paper. [evidence-1]

Sources and credits

Credit: OECD

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