Hanoi (VNA) – Experts from PricewaterhouseCoopers (PwC) have suggestedways for ASEAN to get over the era of passive growth, lure more foreign directinvestment, and develop human resources on the sidelines of the ongoing WorldEconomic Forum on ASEAN (WEF ASEAN) 2018 in Hanoi.

“Goingforward, we see significant growth opportunities for the private sector acrossa number of industries in ASEAN. However, given the dynamics and challenges ofASEAN, along with the ever evolving and demanding needs of consumers in theregion, companies will need to adopt innovative strategies to succeed,” saidDavid Wijeratne, Partner and PwC’s Growth Markets Centre Leader from Singapore.

Since its inception, ASEAN has not onlydoubled its membership, but has successfully weathered both the Asian financialcrisis of 1997 and the global economic crisis of 2008–2009, to become thesixth-largest economy globally. Along this remarkable growth journey, ASEAN hasmanaged to balance economic growth with human development to lift millions ofpeople out of poverty across the entire region.

However,a number of challenges, including a slowdown in short-term economic growth,weak labour productivity, an ageing population, an over-dependence on externaltrade and major voids in infrastructure and national institutions raisequestions about the sustainability of ASEAN’s growth story.

In order to progress from an era of passive growth andfulfill their true potential ASEAN nations need to take more proactive measuresto continue to attract investments, develop institutions, and evolve people andtechnological capabilities. The private sector will also have a major role toplay by working more closely with governments to develop the right conditionsfor businesses to prosper.

According to Wijeratne, as many ASEAN member states arefacing population ageing, the bloc should provide its workers with opportunityto develop their skills to get higher wages.

As one of the countries with ageing population, Vietnamneeds to take measures to increase the participation of women and the ageingworkers in the workforce, he said. Strengthening the partnership between theprivate and public sectors is required to create more job opportunity the younglabourers in Vietnam while these people need to be equipped with better skillsto allow the country to go further in attracting foreign investment, he noted.

Echoing his view, General Director and Partner of PwCVietnam Dinh Thi Van Quynh said, despite the robust economic growth, Vietnam’sGDP per capita is not high in the region and ageing population is also amongthe country’s big challenges.

The digital economy is thriving so the workforce mustbe provided with better skills. Vietnam has been relying on cheap labour whichis now no longer an advantage, she said.

To improve labour productivity and move up the globalvalue chain, Vietnam should spend more on technology and education to developits human resources, she added.

The WEF ASEAN 2018 opened in Hanoi on September 12.Themed “ASEAN 4.0: Entrepreneurship and the Fourth Industrial Revolution”, theevent has attracted leaders of many ASEAN countries and partner nations, over1,000 delegates who are also WEF members, as well as representatives ofbusinesses from around the world. –VNA