Ernst & Young gives upbeat outlook

Ernst & Young gives upbeat outlook

Viet Nam is one among four emerging economies reaching the highest growth in Asia and has great potential to compete with regional countries and China, says Ernst&Young, a leading professional service organisation.

James S. Turley, Chairman and Chief Executive Officer of Ernst&Young said at a press briefing on Monday that despite many challenges, he was still optimistic about the Vietnamese economy.

"A young and educated population is a huge potential that Viet Nam has," Turley said.

"With a population of nearly 90 million, more than half of whom are under 30, the country has a strong economic advantage in boosting innovation and creativity," he explained.

An Ernst&Young statement released on the occasion of the firm's 20th anniversary in Viet Nam said the country has made great strides in becoming a global player, not the least through WTO accession in 2007 and was increasing its competitiveness relative to others in the region, particularly China.

In addition, a wealth of dynamic and entrepreneurial talent was the country's strength, it said.

It said the predicted GDP growth rate of around 5 per cent for the next two years was the envy of many developed economies, but in Viet Nam, it means "treading water, given that average incomes are still low and inflation often outpaces growth and the country still requires investment in basic infrastructure."

"It is clear that there is pressure on Viet Nam's Government to decide what steps it will take to correct fiscal imbalances and put the economy back on a secure footing," it said.

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