Hanoi: The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) has identified Vietnam as one of the 11 countries in the Asia-Pacific region most vulnerable to climate change from a macroeconomic perspective. This revelation comes from ESCAP’s latest report, released on April 8, which assesses the readiness of these economies to tackle climate-related challenges.
According to Lao News Agency, the report forms part of the 2025 edition of the Economic and Social Survey of Asia and the Pacific. Despite the region driving 60% of the world’s economic expansion in 2024, many countries remain unprepared for climate shocks and the transition to a greener economy. The report highlights the complex interplay between macroeconomics and climate, pointing out challenges such as slower productivity growth, high public debt risk, and rising trade tensions.
Armida Salsiah Alisjahbana, UN Under-Secretary-General and Executive Secretary of ESCAP, stated that increasing global economic uncertainty alongside deepening climate risks complicates the task for fiscal and monetary policymakers. She emphasized that navigating this evolving landscape requires not only sound national policies but also coordinated regional efforts to ensure long-term economic prospects and address climate change.
Among the 30 countries analyzed in the survey, Afghanistan, Cambodia, Iran, Kazakhstan, Laos, Mongolia, Myanmar, Nepal, Tajikistan, Uzbekistan, and Vietnam were identified as most exposed to climate risks from a macroeconomic perspective. The report also points out significant disparities in coping ability across the region. Some countries have mobilized considerable climate finance and adopted green policies, while others are hindered by fiscal constraints, weaker financial systems, and limited public financial management capacity.
The report notes that, while the Asia-Pacific region remains relatively vibrant compared to the rest of the world, the average economic growth in developing economies slowed to 4.8% in 2024 from 5.2% in 2023, and 5.5% during the five years prior to the COVID-19 pandemic. In least developed countries, the 2024 average economic growth rate of 3.7% fell short of the 7% per annum GDP growth target outlined in Sustainable Development Goal 8.
To secure long-term economic prosperity, the survey recommends proactive government support for upgrading into more productive, higher value-added economic sectors. It also suggests that the region should leverage its competitiveness in green industries and value chains as new engines of economic growth, and embrace inclusive regional economic cooperation to meet the development aspirations of both developed and developing countries.