Maersk Line Maintains Positive Outlook on Vietnam Regardless of Challenges

 

According to the report, regardless of declining foreign direct investment, Vietnam still enjoys macroeconomic stability with inflation on target. The country maintains a steady exchange rate, a strong export sector posting a surplus. Regarding long – term growth, the report said Vietnam continues to experience constraints and obstacles to its global competitiveness.

 

Ms Bich Nguyen, General Director of Maersk Line Vietnam & Cambodia, said that Vietnam’s economy may be hampered by slow pace of structural reforms of State-owned enterprises and the banking sector. However, Ms Bich believes that manufacturing and production still remains robust. The report revealed that Vietnam’s competitiveness within the region is on the decline. Export goods tend to be low value added products that are labour intensive and require little technical skill and technological input.

 

“Vietnam has been benefiting from a growing influx of young workers which has provided the country with a competitive advantage in labour costs. However, it is critical to increase its labour productivity to convince more investors to set up their factories here, and one of the ways Vietnam can have significant productivity gains is through technological transfer,” said Ms Bich.

 

Regarding improvement of competitiveness through paperless transactions, Ms Bich said that e-solutions is the key for Vietnam when it seeks to compete in the world economy and trade in higher value added goods under just-in-time productions, transaction speed and reliability of service. “E-solutions means less time, less mistakes and less, if not, zero additional cost being incurred due to documentation errors”, added Ms Bich.