"Navigating a Perfect Storm" - Report of DBAVs high level panel
The event was generously sponsored by Heineken Vietnam, and all participants received a two week trial to Nikkei Asia - business news from an Asian perspective.
Biggest short term obstacles for Vietnam
When asked about the biggest short term obstacles to Vietnam, the panelists shared perspectives. Corruption was collectively identified as a major issue hindering Vietnam's growth and ambition to become a high income economy by 2045.
The panelists also highlighted the importance of external threats, such as a threatening recession in the US and other economic headwinds that are resulting in a slowdown in export markets.
The real estate sector was also discussed, with the panellists agreeing that the current real estate situation further complexifies the economic situation, as banks cannot carry the loans for buying houses. Furthermore, 45% of these loans are shown to be unsecured. Vietnam is still an emerging market with such obstacles still being an issue. However, hope was expressed that Vietnam is working hard to find opportunities to overcome them.
"Never let a good crisis to waste"
The business leaders exemplified how external factors can be utilized in a good way as in 2020 COVID halted the launch of a new Heineken beer, the company used the situation to create traction and energy in an alternative way.
Regarding improving supply chains of businesses, it was asked whether investment should be prioritized locally or internationally, with the panelists suggesting that investing in digitalization and data analysis/utilization should remain the main priority.
Suggested key priorities for Vietnam
The panelists collectively agreed that Vietnam's government should invest in green economy and sustainability. When asked if these aspirations may be the first to be neglected in Vietnam, a panelist positively stated that green sustainability plans are long-term and therefore will not be terminated easily. The importance of the Power Development Plan 8 was stressed in this regard, as well as taking good care of their foreign investors, while the panelists also emphasized the importance of taking care of micro-economies, as well as easier visa applications.
Vietnam's short term challenges are complex, but the long term prospect remains high potential
In conclusion, the panel provided valuable insights into Vietnam's current economic situation and future prospects. It is evident that Vietnam faces several challenges, but there are also opportunities for growth and development. The high-level intensity of the discussion was concluded with a relaxed post-session networking drinks, hosted by Heineken Vietnam.