
Vietnam will outgrow some Asiancountries going forward as its netFDI inflows have averaged 5% of GDP annually, by far the highest ratio in theregion, said Kraemer, asserting that investment is attracted by the stillplentiful and relatively cheap labour, making Vietnam an exporting powerhouse.
Regarding lessons for Vietnam in economicdevelopment to ensure sustainable success, Kraemer said that rightnow, Vietnam is still full of promise. The recent ratings upgrade byS&P Global makes it likely that the country will be the next “rising star”, he said.
“I believe that sustained success demands that the country’sleaders remain vigilant in planning economic and human development strategies.The investors that are now flogging to Vietnam might otherwise move on lookingfor greener pastures in the next Vietnam. By applying appropriate measures,Vietnam will remain an attractive destination for foreign investors,” Kraemer said.
Meanwhile, Jens Ruebbert, LBBW’s Managing Director and RegionalHead for the Asia Pacific region, underlined that in many ways, Ho Chi Minh Cityis a place of seemingly limitless promise.
By applying a suitable population policy, Vietnam managed toavoid the labour crunch and have an abundant workforce. However, the country’sdynamic population will lead to other challenges, he held.
“This also underlines the urgent need for Vietnam to safeguard asustainable path towards prosperity as well as to upgrade the population’sskill level, speeding up the climb up the value chain," the official stressed./.