An assembling facility at Samsung Vietnam, Yen Phong industrial zone, Bac Ninh province (Photo: VNA)

Lowy said Vietnam has emerged as Southeast Asia’s most intriguing economic story over the past decade, adding that as a member of several free trade agreements, Vietnam is an example of future multi-lateral trade liberalization. Integration with the international economic system has brought Vietnam impressive gains in wealth, trade, and investment, but challenges including the continued dominance of the state-owned sector and the lack of a productive domestic private sector still remain.

Lowy stated that Vietnam is one of Southeast Asia’s standout economic performers. With strong fundamentals of favourable demographics, good income distribution, and attractive human capital compared to similar countries, Vietnam is increasingly emerging as an attractive market in its own right.

Vietnam’s political stability, low labour costs, favourable tax and investment terms, and FTAs, have seen it emerge as an attractive exporter to more developed markets. The path of economic restructuring has been pragmatic and omnivorous. Its economic planners justified the introduction of markets as a way of encouraging greater production and trade, Lowy concluded.