Hanoi (VNA) - ThoughVietnam is said to have certain advantages, to maintain sustainedsuccess, the country should be a diligent student of not only the upsides, but alsothe lessons learnt of other countries, said Moritz Kraemer, former Global Chief Ratings Officer of Sovereign Ratings Group at S&PGlobal and currently the Chief Economist, Head of Research of Landesbank BadenWuerttemberg (LBBW).

Speaking to Vietnam News Agency, the expertheld that the world is in turmoil, and theold model of globalisation is severely tested as erstwhile reliable supplychains are ruptured and seem to refuse to heal. Moreover, inflation appears to begetting out of hand in much of the advanced economies as commodity prices soarand labor becomes increasingly scarce.

He predicted that international companieswill progressively search out new locations in their quest to diversify sourcesof supply, after they have become painfully aware of the risk that came withputting most of their eggs into one basket. A place more and more of them seemto find to fit that bill is Vietnam, a country offers political and monetarystability, economic openness, and an industrious workforce and stillcompetitive labour cost, he stressed.

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./.