VietNamNet Bridge briefs the conversation between a Tien phong reporter and Mr Coleman.

In the latest reports released by the World Bank WB and the World Economic Forum WEF, Vietnam has fallen by several grades in the competitiveness index. Meanwhile, with EM20, Vietnam ranks first among the 20 emerging markets in terms of attractiveness as a destination for manufacturing companies. Is there a conflict in the reports?

EM20 does not contradict WB's and WEF's reports, because the reports have been created using different methodologies.

In general, most of the reports are created based on the average score from the competitiveness indexes of many nations. Meanwhile the EM20 by PricewaterhouseCoopers (PwC) tries to reflect the actual viewpoint of the world on an economy by showing the potentials of the companies that are making investment in 20 emerging economies.

This is the first EM20, and we will release the report annually; therefore, Vietnam's competitiveness index will still see changes in the future compared to other economies.

What factors persuaded PwC's researchers to rank Vietnam No 1 in terms of the most attractive destination for manufacturing companies?

The indices that always attract manufacturing companies are low production costs, corporate tax system, the cost for transporting goods to export markets, and scale of the market. I can say that the low labour cost, and the high economic growth rate are the two main reasons that help Vietnam rank No 1.

Also in the EM20, while Vietnam ranks No 1 in attracting manufacturing companies, it nearly ranks at the bottom in the 20 emerging markets in terms of the service sector. Could you please tell us more about the contradiction?

The indices in attracting companies in the service sector are based on how big the volume of the products in the service sector is that can be consumed in domestic markets.

The incomes of Vietnamese people remain relatively low, and the possibility that Vietnamese people spend money on the products of the service sector proves to be lower than the citizens of the rich countries in the Middle East or Europe. As a result, Vietnam's score in terms of the attractiveness in the service sector is lower than the manufacturing index.

Do you think that big groups in the world have become more interested in Vietnam since the release of EM20?

The report has drawn the special attention of the press worldwide. I mean the report has helped heighten the image of Vietnam in the eyes of international potential investors.

What would you say about the business environment in Vietnam as the world's leading investment consultant?

Vietnam's economy is growing rapidly and the country is opening its doors more widely to the world in both trade and investment.

Meanwhile, the domestic market is benefiting from liberalisation and reform programmes. The attractiveness of Vietnam in the eyes of international investors will be improved in the future in both the manufacturing and service indexes.

PWC is the world's biggest business consultancy group, now operating in 150 countries and territories.In the EM20, Vietnam even exceeded the well-known BRIC (Brazil, Russia, India and China) in terms of attracting manufacturing investors. China also got 95 points, the same as Vietnam, but it ranked second since production costs in Vietnam are lower than in China.However, Vietnam just got less than 10 points in terms of attracting investors in the service sector.

Source: Tienphong.