Strategies for Sustaining Business Growth in Vietnam's Evolving Economy
Enhancing Capabilities for Growth
To maintain growth momentum and move up international value chains, businesses in Vietnam should focus on enhancing their capabilities in three areas: talent, technology, and governance, according to Ms. Dinh Thi Quynh Van, General Director of PwC Vietnam. She highlighted this during her speech at the Vietnam Business Summit 2018 held in Hanoi on September 13.
Representing PwC Vietnam, the summit's knowledge partner, Ms. Quynh Van underscored Vietnam’s impressive growth in GDP, FDI inflows, workforce, and middle-income consumer base, which have consistently outperformed many regional peers. However, she pointed out that the country's advantage in low labor costs will diminish over the years due to new technologies and changing global trade dynamics.
“In order to grow sustainably, businesses should invest in three key areas: technology, talent, and governance,” Ms. Quynh Van emphasized. She noted that Industry 4.0 demands businesses to transform into smarter, more efficient, and more risk-resilient entities. This transformation requires the right technologies, skilled personnel to operate them, and appropriate governance structures.
“Businesses will need to take the lead in this process, but the government will also play a crucial role, especially in enhancing institutional capacity, skill supply, and digital connectivity infrastructure,” she added.
Improving Regional Ties
During the World Economic Forum on ASEAN and the Vietnam Business Summit, PwC introduced its study “The Future of ASEAN - Time to Act” and released a special publication, “The Future of ASEAN: Vietnam Perspective.” This publication provides an in-depth look into Vietnam’s growth fundamentals and competitiveness compared to ASEAN peers.
The Vietnam Perspective report identifies sectors with high development potential, such as financial services, consumer goods, and infrastructure—particularly transportation. For each sector, the report compares Vietnam to other ASEAN markets and highlights growth opportunities for investors.
“We believe that developing these sectors will help Vietnam improve its regional position and enhance collaboration capacity,” Ms. Quynh Van explained. She emphasized that, in addition to 'hard infrastructure' like railways, roads, and ports, the financial services sector provides the 'soft infrastructure' necessary to boost commercial and investment activities.
“Consumer goods hold significant potential for increased trade due to the large consumer bases and the proximity of ASEAN economies,” she noted.
Vietnam’s Emerging Status and Business Prospects
Vietnam has risen from a smaller economy in ASEAN to the middle-income bracket and is recognized as one of the region's most dynamic emerging countries. Experts from PwC and other international organizations at the World Economic Forum on ASEAN agree that Vietnam will continue to offer promising prospects for the business community. Success hinges on a thorough understanding of Vietnam’s business landscape and the identification of growth opportunities and challenges.
Vietnam Business Summit Highlights
The high-level conference saw around 1,300 delegates from Vietnam, ASEAN, and major trading partners such as the US, Japan, and South Korea. Organized by the Vietnam Chamber of Commerce and Industry within the framework of the World Economic Forum on ASEAN 2018, the summit was themed “Vietnam - We Mean Business: Connect and Innovate.”
Prime Minister Nguyen Xuan Phuc and World Economic Forum President Borge Brende delivered keynote addresses and engaged in dialogues with the business community about Vietnam’s role in ASEAN and global value chains. The event provided local and foreign enterprises an opportunity to meet with business and government leaders, gain insights into Vietnam’s economy, and explore new business opportunities in key investment areas
Reference: Vietnam Economic Times
