The Australian Financial Review said Vietnam has become an essential cog in the global supply chains (Photo: VNA) The Straits Times wrote that the ongoing 13th National Congress ofthe Communist Party of Vietnam is to pick new leaders and chart its next coursewith a strong tailwind from its recent successes.
It said in his opening speech of thecongress on January 26, Party General Secretary Nguyen Phu Trong hailed thecountry's economic development and its containment of the COVID-19 pandemic astwin major achievements. Southeast Asia's rising star does have braggingrights, the paper noted.
This year can be Vietnam's breakoutmoment after having controlled the COVID-19 pandemic ahead of economies in theregion. It can steal a march on the others, as it is probably already doing,taking up the slack as factories in the region stay shuttered while demand fortech, medical and other products surge.
The new leaders it selects and thenew course it sets will determine how well it does this and what role it cancarve for itself in the region, according to The Straits Times.
In addition, the newspaper added, itis also mindful of the domestic challenges and external uncertainties thatcould thwart its ambition to become an upper-middle-income country by 2025 andan industrialised economy by 2030.
The article cited Party GeneralSecretary Nguyen Phu Trong as admitting that there are shortcomings, includingan economy that is not yet highly resilient. While Vietnam has privatised manystate-owned firms, which make up nearly a third of economic output, are low inefficiency and account for many bad loans. The economy remains dominated bylow-end assembly work rather than high-end manufacturing. The outdated highereducation system also cannot turn out enough highly skilled workers.
In its article on the 13th National Party Congress, the AFR said domestic tourism and everydaylife are largely back to normal.
It noted Vietnam’s leaders are focused on attracting moreforeign investment as the country has become an essential cog in the globalsupply chains.
Low labour costs and negligible barriers to entry thatinitially attracted multinationals such as Unilever and Pepsico in the 1990sand early 2000s remain a drawcard. More recently, electronicgiants such as Apple-supplier Foxconn have become keen for openingmanufacturing establishments here.
The article added that the World Bank describes Vietnam asone of the most dynamic emerging countries in East Asia.
The AFR also quoted Francis Wong, senior adviser to theAustralia-Vietnam Business Council, as saying that one of the keys tosuccessful economic policies for Vietnam is stable and predictable successionin the government that’s driving the push towards an open economy, and thatthis creates confidence for investors both within the country and foreigners./.
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