“In the context of volatile economy and unstable political situation all over the world, Vietnam has emerged as a bright spot in the region with the advantage of competitive labor price, stable political climate as well as stable macroeconomics”, citing from the speech given by the General Director of HSBC Vietnam Pham Hong Hai, at the Prime Minister's meeting with Enterprises.
HSBC General Director, Pham Hong Hai. Photo: Bizlive
"Many foreign investors are now determining that Vietnam is their only destination in the region and that they still expect to expand their investments in Vietnam,” said Hai
"In the past, I thought Vietnam has been considered a cheap labor market with young and rapidly growing population. However, nowadays Vietnam has become a manufacturing center of the world with hugh projects, billion - dollar contracts and high value products. In addition, the commitment of building an integrity and constructive government has currently encouraged the business community,” said HSBC General Director.
Also at the conference, HSBC’s representative presented 3 recommendations to the government. Firstly, in order to take advantage of the recent flow of FDI, Vietnam needs to pay attention to environmental factors and the problem of linking Vietnamese enterprises with FDI enterprises.
"We also understand that a country wanting to grow must not rely solely on cheap labor but develop strategies focusing on key industry sectors in which Vietnam has competitive advantage. We also need to invest in technology to be able to develop and compete sustainably," said HSBC General Director.
In addition, Vietnam's labor productivity is still relatively low in comparison with other countries in the region, thus, Vietnam need to step up educational reforms, use a variety of methods to improve education quality such as applying technology and introducing English as a main subject. Educational reform will repidly increase the productivity of the Vietnamese people.
"Currently, the future of TPP has been uncertain, but the government has committed in pursuing it baceuse TPP will help increase the competitiveness of Vietnamese businesses,” added HSSBC rep.
"A country can only develop sustainably only if domestic enterprises also develop strongly and sustainably"
HSBC General Director
Although Vietnam’s outlook has remained positive, Vietnamese enterprises have seen shortages in the process of competing with FDI enterprises; therefore how can we increase our competitiveness?
The representative of HSBC said that a country can only develop sustainably only if domestic enterprises also develop strongly and sustainably.
“Vietnamese enterprises need to conduct comprehensive reform, improve their competitiveness, invest in technology for sustainable development, improve their management skills, and actively participate in the supply chain of FDI enterprises." Said Mr.Hai.
"Finally, Vietnam has a huge advantage over othercountries in the region, based on cheap labor and theinflux of FDI, posing"golden opportunity" for Vietnam to be able to carry out reforms in priority sectors. I stronglybelieve that Vietnamese governmentwill make Vietnam a new tiger in Asia", emphasized HSBCGeneral Manager.
