English
International integration promotes Vietnam’s economic reforms
The Hanoitimes – The Vietnamese Government has considered international economic integration a motivation to promote economic reform and development.
At a meeting on international economic integration recently, Prime Minister Nguyen Xuan Phuc highlighted the role of integration in the country’s growth, adding that the Government has consistently pursued a comprehensive integration policy with focus placed on international economic integration.
According to Phuc, thanks to the international economic integration, Vietnam’s trade surplus exceeded US$3 billion for the first time and its import-export turnover in 2017 is likely to reach $420 billion, he said, adding that the nation is now home to more than 24,000 valid foreign-invested projects with total registered capital of nearly $320 billion.
According to Phuc, thanks to the international economic integration, Vietnam’s trade surplus exceeded US$3 billion for the first time and its import-export turnover in 2017 is likely to reach $420 billion, he said, adding that the nation is now home to more than 24,000 valid foreign-invested projects with total registered capital of nearly $320 billion.
Phuc asked ministries, sectors and localities to strongly and comprehensively implement the international integration action plan in all aspects in parallel with the reform process.
He requested the Inter-sectoral Steering Committee for International Economic Integration to enhance connections and coordinate ministries, sectors and localities to effectively carry out the work of international economic integration and examine international agreements, especially commitments in free trade agreements (FTAs).
He called for more efforts from businesses to study FTAs, thus building their own business plans and overcoming challenges. Small- and medium-sized enterprises should foster linkages through associations to protect their legitimate rights in the context of increasing competition, and to deal with new international trade barriers.
The PM also underlined the important role played by businesses, especially private enterprises, saying that the private sector is a driving force behind the national economy.
To implement its integration commitments, Vietnam is making every effort to foster economic reform, from re-organizing production, building brands to renewing growth models, and improving the economy’s competitiveness and legal institutions in order to create a better business climate for domestic and foreign investors, Phuc said.
Vu Thanh Tu Anh, research director of Fulbright Economics Teaching Program, said Vietnam has participated in a number of economic waves. The importance was that Vietnam should consider what benefits are gained from this.
According to Anh, Vietnam has been a successful country and mostly enjoyed achievements after its international integration as 70 per cent of import-export value comes from foreign firms.
However, he said risks are ahead as FDI movements depend on the world’s economic and political climate. Moreover, if Vietnam continues to be a location for foreign companies to produce and export without transferring technologies, it would be unsuccessful in integration.
“Integration is important, but how to integrate is even more important,” he added.
He suggested that the Government should effectively use opportunities from international economic integration by selectively attracting foreign investment with a long-term vision, finding ways to join the global supply network and taking advantage of new generation FTAs to expand export markets.
Nguyen Dinh Cung, director of the Central Institute for Economic Management shared the idea, saying that FDI companies have better taken advantages of integration than Vietnamese firms thank to the economy’s openness and increasing import-export turnover.
Cung suggested that the Government should further promote the cutting of business trading costs for the 2018-2020 period. Accordingly, at least one-third or a half of business conditions should be removed while reducing a half of goods under special inspection.
Next year should be a year of cutting costs for businesses, Cung said, suggesting that the Government should consider reducing interest rates besides reviewing BOT fees and resolving traffic jams to lower logistics costs.
He requested the Inter-sectoral Steering Committee for International Economic Integration to enhance connections and coordinate ministries, sectors and localities to effectively carry out the work of international economic integration and examine international agreements, especially commitments in free trade agreements (FTAs).
He called for more efforts from businesses to study FTAs, thus building their own business plans and overcoming challenges. Small- and medium-sized enterprises should foster linkages through associations to protect their legitimate rights in the context of increasing competition, and to deal with new international trade barriers.
The PM also underlined the important role played by businesses, especially private enterprises, saying that the private sector is a driving force behind the national economy.
To implement its integration commitments, Vietnam is making every effort to foster economic reform, from re-organizing production, building brands to renewing growth models, and improving the economy’s competitiveness and legal institutions in order to create a better business climate for domestic and foreign investors, Phuc said.
Vu Thanh Tu Anh, research director of Fulbright Economics Teaching Program, said Vietnam has participated in a number of economic waves. The importance was that Vietnam should consider what benefits are gained from this.
According to Anh, Vietnam has been a successful country and mostly enjoyed achievements after its international integration as 70 per cent of import-export value comes from foreign firms.
However, he said risks are ahead as FDI movements depend on the world’s economic and political climate. Moreover, if Vietnam continues to be a location for foreign companies to produce and export without transferring technologies, it would be unsuccessful in integration.
“Integration is important, but how to integrate is even more important,” he added.
He suggested that the Government should effectively use opportunities from international economic integration by selectively attracting foreign investment with a long-term vision, finding ways to join the global supply network and taking advantage of new generation FTAs to expand export markets.
Nguyen Dinh Cung, director of the Central Institute for Economic Management shared the idea, saying that FDI companies have better taken advantages of integration than Vietnamese firms thank to the economy’s openness and increasing import-export turnover.
Cung suggested that the Government should further promote the cutting of business trading costs for the 2018-2020 period. Accordingly, at least one-third or a half of business conditions should be removed while reducing a half of goods under special inspection.
Next year should be a year of cutting costs for businesses, Cung said, suggesting that the Government should consider reducing interest rates besides reviewing BOT fees and resolving traffic jams to lower logistics costs.
Source: http://hanoitimes.com.vn/economy/2017/12/81E0BDA9/international-integration-promotes-vietnam-s-economic-reforms/