"A young and educated population is a huge potential that Vietnam has," Turley said. James S. Turley, Chairman and Chief Executive Officer of Ernst&Young said at a press briefing on Monday that despite many challenges, he was still optimistic about the Vietnamese economy.

"With a population of nearly 90 million, more than half of whom are under 30, the country has a strong economic advantage in boosting innovation and creativity," he explained.

An Ernst&Young statement released on the occasion of the firm’s 20th anniversary in Vietnam said the country has made great strides in becoming a global player, not the least through WTO accession in 2007 and was increasing its competitiveness relative to others in the region, particularly China.

In addition, a wealth of dynamic and entrepreneurial talent was the country’s strength, it said.

It said the predicted GDP growth rate of around 5 per cent for the next two years was the envy of many developed economies, but in Vietnam, it means "treading water, given that average incomes are still low and inflation often outpaces growth and the country still requires investment in basic infrastructure."

"It is clear that there is pressure on Vietnam’s Government to decide what steps it will take to correct fiscal imbalances and put the economy back on a secure footing," it said.