In the past year, Vietnamese diplomacy has made important contributions to the consolidation of traditional friendship with partners, especially strategic partners, deepening sustainable economic relations, both bilateral and multilateral. Vietnam Business Forum interviewed Deputy Foreign Minister Bui Thanh Son. Nguyen Mai reports.
What are the outstanding achievements of Vietnamese diplomacy in 2015, especially in economic diplomacy?
2015 was a very successful year for Vietnamese diplomacy in all fields. Vietnamese foreign relations are expanding in scope and scale. In bilateral relations, Vietnam has in the main completed stable relations with important and promised partners. With the recent upgrading of strategic partnership with Malaysia and the Philippines, Vietnam has in total 15 strategic partners and 10 comprehensive partners, and all of them are leading economic and strategic partners in the region and the world. In particular, General Secretary Nguyen Phu Trong has visited three major economies: the United States, China and Japan in one year, emphasizing the importance of Vietnam in international relations. 2015 was also a successful year for Vietnam in international integration and multilateral diplomacy, with high election votes to the leading body of ECOSOC (2016-2018) and UNESCO (2015-2019). Those achievements have confirmed the ever-increasing role of Vietnam in international arena.
A bright spot in Vietnamese diplomacy this year was the contribution to economic development and international integration. For the first time, in one year, Vietnam has concluded negotiations/signed four important free trade agreements (FTAs): TPP, FTAs with South Korea, the Eurasian Economic Union (EEU), the European Union (EU). In the context of investment flow to developing countries, Vietnam is a promising destination. In 2015, Vietnam has attracted FDI worth some US$22 billion with US$13.3 billion implemented in the first 11 months, up 17.9 per cent compared to the same period 2014. ODA in 2015 is some US$5 billion. Vietnamese Foreign Ministry and embassies abroad have coordinated with South Korea and Thailand to continue to receive Vietnamese guest workers. Relentless efforts of Vietnamese ambassadors have for the first time brought Vietnamese litchi and mangoes to “difficult” markets as Australia, Japan and the US.
Economic diplomacy has contributed to the economic growth of over 6.5 per cent in 2015, the highest in the past 5 years and exceeding the target set by the National Assembly of 6.2 per cent. Although the achievement seems “intangible”, the contribution of economic diplomacy to the country, businesses and people is “concrete”.
With TPP, ASEAN Economic Community and other FTAs, what advantages and challenges will Vietnamese businesses confront in the implementation?
Those FTAs will make Vietnam a focus point of regional and inter-regional economic cooperation for 58 partners including 15 members of G20 contributing almost 90 per cent of world GDP and over 80 per cent of world trade. ASEAN Economic Community alone means that Vietnam is part of a big market of 650 million people, after only China and India, with GDP of nearly US$3 trillion and ranking 7th in world markets.
Nevertheless, there are always opportunities and challenges in all games. FTAs will help Vietnamese businesses expand markets for their main exports. According to independent experts, TPP will increase Vietnamese export by additional US$68 billion in 2026. Vietnam may benefit most among 12 TPP member countries. Vietnamese businesses will have more conditions to diversify material resources, attract more investments and receive advanced technology and management. In particular, new FTAs with high standards will offer more opportunities for Vietnamese businesses to integrate deeper into regional and world supply chains. In other words, those FTAs will help Vietnamese businesses transform from sub-contractual to higher position with higher added value.
However, those are only objective conditions. Vietnamese businesses themselves must make greater efforts. Besides advantages, there are big challenges. No doubt, it is much more difficult to sail in the high seas. New FTAs with direct competition from outside, stringent conditions on product origins, health safety, labour and environment conditions will be major challenges to Vietnamese businesses. Without higher competitiveness, optimising opportunities and overcoming challenges, Vietnamese businesses may be defeated in their own home court. The danger of trade disputes and lawsuits may also increase.
Looking back over international economic integration in the past decades, however, I believe that the advantages are bigger than challenges. As a matter of fact, Vietnam is leading other ASEAN members in export value to the US market. And from trade deficit in 2012, 2013 and 2014, Vietnam now has trade surplus for daring international integration and more pro-active in international economic integration for the defence and building of the nation.
What are the main tasks of diplomacy in 2016?
The Party XII Congress will set out foreign policy of Vietnam for the next 5 years. 2016 is important as it is the first year of implementing Resolution of the Party XII Congress and also the first year of the ASEAN Economic Community, together with many other important economic commitments, therefore, foreign relations will focus on the following tasks:
One, to implement successfully the political lines of the Party XII Congress, as well as Politburo Resolution 22, on international integration.
Two, to carry out effectively foreign policy making relations with other countries deeper and more stable. In the past 5 years, we have completed the framework of relations with important and high priority partners. Now it is time to consolidate mutual interests, making strategic and comprehensive partnerships more useful for both Vietnam and partners, for peace, stability and development of the region and the world.
Three, to consolidate peaceful environment and stability for national development, at the same time defending national sovereignty and territorial integrity, contributing to socio-political stability and heightening Vietnamese position in the international arena. Those tasks are closely inter-related, without taking any task lightly.
Four, to accelerate comprehensive international integration with the main task of economic integration, in particular, be ready to make the best use of opportunities offered by new FTAs. Meanwhile, multilateral diplomacy must be developed and play more active role in ASEAN and other regional and international organizations, including hosting APEC 2017 in Vietnam.
On the occasion of the New Year, what do you have to share with the business community in increasing competitiveness in the present conditions of globalisation?
In the comprehensive international integration, businesses bear the brunt. The strength of businesses determines the success of international economic integration. Businesses succeeding in domestic and international markets will ensure national development. I fully understand and share the problems facing businesses in the big game with a series of new-generation FTAs coming into force. It is time to display Vietnamese ability. The world has admired Vietnam for its heroism in fighting for national independence. Now it is time for Vietnamese businesses to show to the world that we can do even more.
In 2015, we have seen the successful development of Vietnamese businesses. Reports of several organisations show that in 2015 Vietnam has improved three ranks in business environment, 12 ranks in global competitiveness and 19 ranks in global innovation indexes. In particular, Vietnam is among the Top 3 of ASEAN in innovation indexes in advance of 5 years. Those are most encouraging signs.
The government and related ministries are always side by side with businesses in cooperation with foreign partners and improving domestic business environment. In 2015, the government has enforced Resolution 19 and Directive 11 on improving the business environment and national competitiveness. For their part, businesses should do their utmost to withstand and develop with ever-increasing difficult competition, get ready for the future and give up easy-going practices so that they can integrate successfully in the new era.
In the past years, many Vietnamese businesses have played well their role in international markets. Therefore we can believe Vietnamese businesses have bright prospects. I firmly believe that Vietnamese businesses can make the best use of the opportunities and overcome challenges. Together with other ministries, the Ministry of Foreign Affairs stands ready to join businesses in their endeavours in international integration, in the interest of each citizen, each business and of the whole nation.
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