Ousmane Dione, director of the World Bank for Vietnam said the country's sustainable development was being challenged by slower trade development, a poorly-skilled workforce, climate change and ageing population.

Ousmane Dione discussed the problems at the National Conference on Sustainable Development held on July 5 with Prime Minister Nguyen Xuan Phuc.

Dione said new trends would bring about both positive and negative effects and it was important to Vietnam to seize and exploit the opportunities. First, commercial and trade development in Vietnam is becoming slower.

Vietnam has an advantage as in strong FDI attraction and 2.4 million workforces. However, it is facing competition from neighbouring countries including Cambodia and Myanmar. FDI firms can also return to make investments in their own countries due to technological developments.

Moreover, skilled workers are in demand while only 8% of the local workforce have a bachelor degree. They are too small to make significant changes to the industry. Workers that are from ethnic minority groups, elders and a part of the young generation are more vulnerable.

The Vietnamese population is getting older at the fastest rate in the world. The number of over-65-year-old people accounted for 6.5% of the population last year and is expected to reach 21% in 2050. This will have a huge impact on human resources.

Deputy Prime Minister Vu Duc Dam agreed that it was difficult to have a fast growth rate and even more difficult to maintain sustainable development. He was glad that Vietnam's competitiveness and business environment had improved but they still need to work harder.

"The authorities still haven't been able to deal with many difficulties for firms. However, there are also firms which focus on the immediate results instead of long-term solutions," he said.

Prime Minister Nguyen Xuan Phuc urged firms and authorities to improve the business environment and competitiveness. He highlighted the role of Vietnam Chamber of Commerce and Industry and social organisations in finding cumbersome procedures and corruptions. He also said they should develop the entrepreneurial ecosystem for start-up projects.

Dtinews