Foreign companies are looking for new destinations to diversify supply resources and Vietnam continues to be an eventual place thanks to its political and monetary stability, economic openness, abundant labor and competitive labor costs, said Kraemer.

Speaking to the VNA news agency, Kraemer highlighted that the net inflow of foreign direct investment (FDI) in Vietnam reached an annual average of five percent of the Gross Domestic Product (GDP), the highest in the region, and the share of manufacturing in the indicator exceeded 17 percent.

Vietnam’s attraction of FDI is attributed to abundant and relatively cheap labor, which has made the country an export powerhouse, the economist argued.

The former director of the credit rating organization S&P Global also pointed out that the impacts of the Covid-19 pandemic continue to be a persistent threat to the world economy, especially to some Asian countries.

In that sense, he pointed out that inflation is out of control in most advanced economies, as the prices of raw materials rise and labor becomes increasingly scarce.

The expert further reported that S&P Global upgraded Vietnam’s long-term national credit assessment to BB+ and called it a “rising star.”

pgh/llp/rgh/mpm