US scholars urge Vietnam to climb global supply chains

Eminent scholars and experts from three leading American universities have recommended the Vietnamese government adopt a wide range of solutions to climb global supply chains following the recent double upgrade of ties with the U.S.

At a Thursday meeting with Vietnamese Prime Minister Pham Minh Chinh, who is attending the annual United Nations General Assembly gathering in New York, the scholars from Harvard, Columbia and Yale made suggestions regarding governance so that Vietnam can boost its economic growth while maintaining macroeconomic stability.

They discussed mechanisms and policies needed to better Vietnam’s business and investment climate, enhance economic resilience and competitiveness, further lure foreign investment, accelerate its industrialization, and establish a more solid footing in value chains.

Professor David Dapice from Harvard Kennedy School pointed out that Vietnam is likely to face more global headwinds given its high openness. However, the country is in a good position to attract shifting investments.

Dapice and Professor Shang Jin-Wei from Columbia recommended Vietnam pay more attention to training a highly skilled workforce, further improve institutions, encourage investment in high-technology sectors, secure power supplies, and diversify export-oriented goods.

Highlighting Vietnam’s bright economic outlook, Vietnamese-American billionaire Chinh Chu advised Vietnam to increase cooperation with the U.S. in high-value sectors, such as technology and semiconductors, and attract foreign investment in priority areas to climb supply chains.

Vietnam should consider sovereign funds like Singapore’s Temasek, Chinh Chu suggested.

For his part, PM Chinh highly valued the scholars’ ideas, particularly preparing skilled manpower to meet demands from emerging sectors. He expected further discussions to bolster Vietnam’s development.