Tran Quang Vu, chief executive officer of Vinashin Group, is suspended as his company is being investigated for wrongdoings.
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Vietnam suspends Vinashin board members amid probe
Vietnam’s $96 billion economy is far less centrally controlled than last decade, and the country, which boasts one of the youngest workforces in the world, managed to gain membership in the World Trade Organization in 2007. The country last year exported $12.3 billion of goods to the U.S., its biggest overseas market. Foreign direct investment is on the rise and could double, to $15 billion this year according to a May 31, report analysts at Standard Chartered Bank.
However, between 2003 and 2005 Vietnam fell dramatically in the World Economic Forum’s Global Competitiveness Report rankings, largely due to negative perceptions of the effectiveness of government institutions. Official corruption is endemic, and Vietnam lags in property rights, the efficient regulation of markets, and labor and financial market reforms.
The 18th International Business Report (IBR) survey by the auditing and consultancy firm Grant Thornton surveyed over 7,400 privately held businesses across 36 nations, finding ten countries where businesses were more optimistic about their economic outlooks, including Vietnam. The survey found that expectations of increased revenues in 2010 for Vietnam is the most optimistic, with 95 percent of respondents forecasting an increase in revenue and 91 percent, an increase in profitability, in 2010. However, according to the survey, due to the global recession, average selling prices in Vietnam are expected to decrease by 13 percent. This means total sales may increase but profitability per unit may fall.
With a country with over 86 million people and with more than 60% under the age of 35 (Source: General Department of Statistics of Vietnam, 2009), Vietnam’s education needs for this young population are huge. Despite attention by the government only about 1.6 million (about 2%) actually are now at higher education institutions. Each year approximately 1.2 million students graduate from secondary education but the enrollment to higher education is only around 300 thousand (Source: Department of Higher Education, MOET).
