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Vietnam in the process of renovation, integration and development
23/2/2018 16:1' Send Print
Prime Minister Nguyen Xuan Phuc. Photo: VNA

The final pieces of the global economy picture in 2017 fell into place, offering a brighter color than in 2016, and also emitting "warm" signals for a reliable start of 2018. The world economy recovered relatively stably and achieved the highest growth since 2010. Most developed countries and emerging economies made both positive and relatively equal growth. Asia continues to be the key driver of global economic growth.

Global trade and investment have gained momentum; prices of essential commodities and crude oil have recovered positively. E-commerce sales have increased sharply, especially in Asia. Imports of developed countries have risen due to improved investment, consumption and purchasing power. Foreign direct investment (FDI) has increased sharply, especially investment in developed countries. Global value chain has seen a shift due to the impact of the fourth industrial revolution. Global financial-monetary situation has basically stable. Exchange rates of key currencies have become less volatile; the euro and currencies of emerging economies have all recovered, reflecting a confidence in global financial market.

Economic cooperation and linkages remain the mainstream in the global economy and continue to be promoted. Most countries have attached importance to promoting economic cooperation and linkages to serve the goals, strategic interests, security and development. Trade liberalization and anti-protectionism have been promoted in large multilateral economic forums (G20, G7, APEC, BRICS); and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership"(CPTPP) agreed on fundamental elements, asserting the determination to promote regional economic integration and anti-protectionism.

In reality, the history of the world economy’s development shows that globalization and integration are imperative trends, although different perspectives exist in some places some time. Globalization is not only an economic process, but also reflects mankind’s aspiration, pursuit of happiness and determination to cope with challenges. Together with the international community, Vietnam is determined to build a government that facilitates, acts, and serves people and businesses; consistently innovates and integrates, mobilizes and uses effectively all resources for the prosperity of the nation. Vietnam has set store by building and renewal of the management mechanism, ensuring flexibility, supporting transparent market access, maintaining high standards of labor, protecting legitimate interests of the business community, and pushing up innovation. The guiding principle in policymaking is to be in line with the demands of realities, and with the trend of technology and globalization, adapt well to new business models under the influence of the fourth industrial revolution, contributing to promoting and enhancing competitiveness in both regional and global levels.

In 2017, Viet Nam recorded significant and comprehensive results in many fields such as establishment of new enterprises, foreign direct investment, import and export, and foreign exchange reserves. Macro economy was stabilized, inflation was controlled, GDP growth reached 6.81%, the highest in 10 years. The manufacturing industry clearly recovered, becoming an important driving force of the economy. The political and social situation was stable. Vietnam's business climate index rose to the 68th position out of 190 economies, up 14 points from 82; Vietnam's Global Competitive Index jumped up 5 ranks from 60 to 55 out of 137 countries. The credit rating agency Moody's upgraded the outlook for Vietnam's banking system to “positive” from “stable." Vietnam's determination to reform along with the remarkable accomplishments has created an elated atmosphere in business and investment and reinforced the trust of the business community and investors.

Vietnam has proactively integrated into the world at different levels, and in diversified forms being consistent with the principles and standards of the global market. It established diplomatic relations with 185 countries and 26 frameworks of strategic partnership and comprehensive partnership including five permanent members of the United Nations Security Council, maintaining economic ties with 224 countries and territories and participating in 16 free trade agreements (FTAs), including agreements which were signed, implemented, and under negotiation and new generation FTAs (EVFTA, CPTPP, RCEP). After 10 years of joining the WTO, Vietnam's export-import turnover increased more than four times, reaching nearly $425 billion, about 1.9 times higher than GDP, showing the strong opening of the Vietnamese economy. In 2017, newly registered foreign direct investment (FDI) bagged $21.3 billion and additional registered investment $8.4 billion. Many of the top 500 global corporations chose Vietnam to invest and develop it into a regional manufacturing hub and link in the global value chain.

Vietnam is always a friend, reliable partner and responsible member in relations with other countries and partners on the basis of complying with the Charter of the United Nations and international law, joining force with the international community in coping with regional and global challenges and turning favorable opportunities into strong growth engines. Vietnam has contributed actively and constructively to the ASEAN Community to form a unified market of nearly 630 million people with a GDP of nearly $3,000 billion with increasing people's incomes; brought into play the central role and position of ASEAN in the region and the world on the basis of solidarity, unity, mutual assistance, independence and perseverance in face of challenges and pressures for peace, stability, cooperative development and prosperity in the region and the world.

As host of the Asia-Pacific Economic Cooperation (APEC) Forum 2017, Vietnam proposed the theme “Creating New Dynamism, Fostering a Shared Future” and built an agenda to connect APEC economies in supporting the rule-based, transparent, non-discriminatory, open and inclusive multilateral trading system. In particular, the APEC Summit Week 2017, with the attendance of leaders of all 21 Asia-Pacific economies, successfully concluded, reaffirming Vietnam’s international role and status. The strong message of the Da Nang Declaration on trade promotion, free and open investment is the mission of APEC economies, supporting the multilateral trading system and once again reinforcing the profile of APEC as the driver of growth, a regional leading economic cooperation mechanism which generates economic integration initiatives. Also at the APEC Summit Week, 11 member countries issued a Joint Statement on core issues toward the signing and rolling out of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Entering 2018, there are intertwined advantages and disadvantages, and challenges in the world and regional situation. Peace, cooperation and development are still the main tendencies, but geopolitical tensions, terrorism and conflicts continue in many places. The world economy is forecasted to grow more than 2017 but there are many risks. Protectionism has increased in some countries and regions. Economic, trade and investment linkages continue to be strengthened, but obstacles remain. The Asia-Pacific region, including Southeast Asia, continues to be a dynamic development hub, and one of the fierce geo-strategic competitive areas. Non-traditional security challenges, especially climate change, natural disasters, epidemics continue to pose many problems that need to be addressed by nations. Science and technology has grown tremendously in the fourth industrial revolution which has caused deep and multi-dimensional impacts on all countries, creating new impetus for economic development and competitiveness as well as challenges and problems to be addressed in political, economic, labor, cultural, social, environmental and national defense and security areas.

In that context, together with other nations and international partners, Vietnam wishes and expects the year 2018 to be a year of peace, stability and prosperity to the world, the common home of all of us. In order to achieve this, each member of the international community needs to strongly show goodwill for cooperation, sense of responsibility, take joint actions and share interests in building the Global Common House on the basis of the UN Charter and fundamental principles of international law, where the rule of law is respected and promoted by all nations, large and small.

With the slogan “discipline, integrity, action, creativity and effectiveness,” Vietnam is determined to maintain a stable socio-political and macro economic environment, promote democracy, prevent corruption and vested interests and realize the United Nations sustainable development goals by 2030. Vietnam will focus on drastic measures to implement strategic breakthroughs to improve institutions, human resources and socio-economic infrastructure. Vietnam hopes to create significant changes in economic reshuffling and reforming the growth model towards increasing productivity, quality, efficiency and competitiveness. Apart from restructuring the State business sector and the banking system, Vietnam will accelerate the settlement of bad debts, reform the public financial system and curb public debts by reducing cost burdens and facilitating business and production activities.

Vietnam will make more flexible use of fiscal and monetary instruments to bolster the economy, generate employments and improve people’s income. It will prioritize investment in developing infrastructure, digital economy and smart industries. to help create effective smart connections, reduce transaction fees, enhance competitiveness of businesses, investors and the economy to achieve high ranking not only in the top group of ASEAN but also towards high standards of OECD. Investment will be poured into education and science-technology while start-ups and innovation will be encouraged. The private economic sector will develop as an important driver for the local economy, and Vietnam strives to have one million effective businesses by 2020, upgrading Vietnam's private economy and other economic sectors to a new height with competitiveness capable of integrating into the region and the world.

Vietnam will improve institutional quality and complete the legal system toward transparency, safety and more effectiveness, promote jurisdiction and enhance State macroeconomic management capacity to maintain growth, continuous advancement of society, and help the low income group catch up with the medium and relatively high income groups. Social advancement is the key to mutual support between the increasing middle class group and economic growth. According to the Vietnam Report 2015 of the World Bank and the Ministry of Planning and Investment Vietnam currently boasts about 10% of its population in the middle class group and it is estimated that by 2035, this proportion will be 50%.

Vietnam will implement consistent policies of integration with a focus on international economic integration in addition to refining the legal system, restructuring the economy, changing the growth model, increasing competitive edge and building proper policies and mechanisms to aid domestic and foreign businesses. Together with member countries, Vietnam strives to sign the EVFTA with the European Union (EU), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership(CPTPP) and the Regional Comprehensive Economic Partnership Agreement (RCEP) to bring new opportunities to the business community, opening up a broader development space for the economy, and engaging in production networks and value chains in member economies.

Vietnam welcomes and will create favorable conditions for both domestic and foreign enterprises and investors to develop production and operate in Vietnam, while stressing unhealthy business activities will be boycotted. It will resolutely take legal action against businesses that cause environmental pollution or damage to natural environmental sustainability, and negative impacts on social and cultural traditional values, illegally use labor and adolescents, discriminate and pay less attention to laborers’ rights, produce counterfeit and poor quality goods, affecting people's health, and commit tax evasion, smuggling and trade frauds.

With its efforts to overcome difficulties and challenges to bring into play its internal strength and creativeness, Vietnam has called for and welcomes the support and cooperation of international partners and communities in all aspects, from economic development to cultural, social, environmental areas, climate change, and national defense and security. We express sincere thank and look forward to receiving the support, assistance and consultation of development partners, business community, international and national experts in developing development strategies to find solutions and appropriate mechanisms and policies to successfully carry out industrialization and modernization in the context of deeper integration.

In today's turbulent world, we cannot successfully pursue the noble goals of cooperation and development without peace and stability. This is particularly significant for the Asia-Pacific region, where hot spots are threatening peace, regional and world stability. Vietnam wishes to strengthen cooperation and solidarity with the international community to overcome challenges, prevent and address disputes via peaceful means and in respect for the UN Charter and international law as well as promote sustainable development to bring prosperity and happiness to all people. For its part, Vietnam will also actively work with other countries in researching and contributing to and seeking solutions to maintain a stable, peaceful environment, friendship, co-operation and development in order to effectively cope with factors hindering international integration such as protectionism, tax evasion, price transfer, obsolete technology, environment pollution, terrorism, racial and religious discrimination while effectively and substantially implement regional and global agreements on sustainable development and climate change response, and shape bilateral and multilateral cooperation institutions. Let us all take practical, effective action, and join hands for a world of peace, happiness and prosperity.

Source: VNA