Two decades of rapid and equitable economic growth have seen Vietnam emerge as a poster child for the benefits of market-orientated reforms. Although growth has moderated, with real GDP growth now forecast at an average of around 3.0% for 2009 (down from 6.2% in 2008), investors remain confident in Vietnam’s long-term prospects. Foreign direct investment (FDI) commitments soared to US$60 bn in 2008— a five-fold increase year on year. At the same time, multinationals are increasingly incorporating Vietnam into its "China-plus-one" strategy. A young workforce, relatively low cost of labour and political stability all add to Vietnam’s allure as one of South-east Asia’s most attractive investment destinations.

Yet, following a period of vibrant development, there are signs that Vietnam is suffering from growing pains—and that the going may get tougher from here. Infrastructure deficiencies, skills shortages and an underdeveloped legislative framework are all significant challenges as Vietnam enters the next stage of its development. The external environment continues to deteriorate, impacting the country’s exporting ambitions. Meanwhile, the government’s fight against corruption is ongoing, and although inflation will be beaten back to 5.1% in 2009 the stock market continues to under perform despite early optimism on the equitisation of state-owned enterprises.

Recent global and domestic economic shocks have raised some new challenges for the government, who face decisive choices in the coming years. Will the leadership maintain its commitment to economic reform and macro-economic stability? What roadmap will the government follow to achieve its goal of turning Vietnam into a modern industrial nation by 2020? How will Vietnam maintain its regional competitiveness in light of rising costs? And will the country adopt a model similar to that employed by the successful East Asian tigers, or follow the path navigated by its South-east Asian neighbours?

Moderated by Economist Group experts, this high-level Business Roundtable presents a valuable annual forum for key decision-makers in government and international business to discuss the development of the Vietnamese business and economy—and to share ideas and expertise on its future direction.

This Business Roundtable takes place at  Melia Hanoi Hotel, March 17th-18th, 2009. For more information please  click here