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Vietnam : Investment in Innovation fuels growth

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vietnam-ho-chi-minh-city-3HO CHI MINH CITY, May 27 – Vietnam is seeing positive growth as a knowledge economy as investments from government complement those coming in from international technology firms, Vietnam News Agency (VNA) reported, citing the Economic Insight report.

The latest report released last week by the Institute of Chartered Accountants in England and Wales (ICAEW) anticipates that capacity is taking off, with economic growth projection hitting 5.8 per cent by 2017.

The report undertakes a quarterly review of Southeast Asian economies, with a focus on the following countries including Indonesia, the Philippines, Singapore and Vietnam.

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Against the backdrop of a recent emerging markets sell-off, potentially rising interest rates luring investors back to the developed world, and a slowdown in China, Asean is looking at a challenging year ahead.

Less developed economies such as Vietnam continue to be dependent on commodities, whilst developing neighbours such as the Philippines and Indonesia are striving to make the transition to an advanced-economy mix of exports.

Mark Billington, regional director of ICAEW Southeast Asia, said that investment in education and skills were key to building a knowledge economy.”

He added that as a highly educated workforce is put into place, the extent to which Vietnam’s economy will thrive will depend partly on the amount of inflow of foreign direct investment.

Charles Davis, ICAEW economic adviser, said that investment was not just about building plants and creating new capacity, it was necessary that foreign firms setting up new sectors in less-developed economies transfer knowledge and increase the skills of workers so they could produce higher value-added goods and services.

– BERNAMA

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