(VOVWORLD) -World Bank (WB) Vice President for East Asia and the Pacific Manuela V. Ferro said it is inspiring to witness the determination and strength of the Vietnamese people, as she talked to a Vietnam News Agency reporter on Thursday during her working visit to Vietnam.
 Ms. Manuela V. Ferro is Vice President of the World Bank for East Asia and the Pacific. Photo: Van Diep/VNA
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“Vietnam's development journey is a remarkable success story. Family incomes increased sixfold in 40 years, nearly eradicating extreme poverty. Vietnam stands as a dynamic, modern economy that has attracted major foreign investment,” said Ferro.
The resilience and determination of its people played a critical role, according to the WB vice president, adding that one key factor in Vietnam’s growth so far is the abundant and low-cost labour force and a second element is low energy costs.
To achieve its goal of becoming a high-income country by 2045, Vietnam must focus on moving up the value chain and integrate domestic firms with productive foreign firms. The service sector has the potential to serve as an additional engine of growth, especially if it is open to investment and greater competition, she said.
Decarbonisation will be crucial, especially in the energy sector, to enhance competitiveness and reduce the carbon footprint of GDP. Investing in a higher skilled labour force, particularly in engineering and other STEM fields, will be critical to protect jobs from automation and drive production to higher value-added activities.
“From the WB’s side, we are ready to finance transformative investments in transport, digitalisation, climate resilience and agricultural productivity that can help Vietnam achieve its goal of achieving high-income status in 2045,” Ferro told VNA.