APEC: Good Environment for Active Integration

Politically, Vietnam has uplifted its position and had a stronger voice on the international arena. Annual APEC Ministerial Meetings and specially APEC Economic Leaders' Meetings offer valuable opportunity for Vietnam to take part in high-level bilateral talks and decide on important regional issues.

 

Economically, Vietnam has better access to capital sources, modern technology and management experience through investment and trade activities with other APEC members, including the world’s top economies like the United States, Japan, China and Canada.

 

Mr Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry (VCCI), affirmatively said: “Joining in APEC, Vietnamese businesses have the opportunity to expand the market and receive a lot of special support mechanisms within the framework of APEC. Thus, this is a chance for small and medium enterprises to seize the opportunity. Through the network of regional financial associations, Vietnamese businesses can seek funds for their business operations.”

 

Annual activities of the APEC business community like APEC CEO Summit, Investment Opportunities Fair, Dialogues between Economic Leaders and the APEC Business Advisory Council (ABAC) have helped Vietnam to effectively connect with the regional business community on the basis of mutual cooperation and benefit.

 

In July 2011, Mr Kurt Tong, US Ambassador to APEC, said, APEC members accounted for over 50 percent of the global economic output, 50 percent of global trade value and 40 percent of the world’s population. Especially, nine out of 10 largest trade partners of Vietnam are APEC economies.

 

According to the VCCI, APEC is the region's largest direct investor in Vietnam, with 65.6 percent of total investment capital. Ten out of 14 largest investors (more than US$1 billion) are APEC members, with a total of US$39.5 billion, accounting for 95.6 percent of total APEC direct investment and 62.7 percent of total foreign direct investment in Vietnam. APEC is the largest regional provider of official development assistance (ODA) for Vietnam and Japan is the largest single donor for the Southeast Asian nation.

 

Vietnam’s trade turnover with other APEC member economies is also the largest, accounting for about 60 percent of export value and 80 percent of import value. All nine largest trade partners with Vietnam (over US$1 billion) are APEC members. Vietnam’s imports from these nine economies make up over 90 percent of Vietnam’s total imports.

 

APEC tourists account for 75.7 percent of foreign tourists in Vietnam. Ten out of 14 countries or territories with biggest number of tourist arrivals to Vietnam are APEC members, including China, Japan, South Korea and Thailand.

 

Being fully aware of the importance of APEC, Vietnam has spared no effort to becoming an active member and having important roles and high prestige in the forum, and had significant contributions to the implementation of APEC objectives. Vietnam initiated the establishment of APEC Micro-business Support and Investment Promotion Fund in 2003. In 2005, it actively sponsored the Initiative of Promoting APEC’s Prepared Actions to Respond Avian Influenza. The role and prestige of Vietnam was shown most clearly by APEC members’ support for Vietnam’s hosting of APEC 2006.

 

Under the theme “Towards a Dynamic Community for Sustainable Development and Prosperity”, Vietnam impressed APEC members during the APEC 2006. The event was a chance for Vietnam to popularise the image of Vietnam - a dynamic, open, secure and integrating country, promote trade, attract investment, and develop tourism. 

 

Currently, Vietnam has participated in approximately 70 multilateral institutions at different levels, from global and inter-regional to regional and subregion. Among inter-regional multilateral institutions, APEC is identified as an important forum for Vietnam to promote the role, status and prestige, and to expand bilateral relations with major global partners.

 

APEC has opened up many opportunities for Vietnamese businesses such as easier access to financial and capital resources at State and private commercial banks. Export credit agencies (ECAs) in APEC have played a leading role in introducing initiatives in support of businesses by surveying import - export subsidies of businesses in APEC member economies.

 

Businesses in APEC member economies are also benefited from training cooperation programmes, capacity-building skill supports, contract negotiations, import and export business, etc. Every year, APEC sets aside a budget for business support projects on the basis of initiatives of member economies.

 

Many projects have been carried out within the framework of APEC in order to build mechanisms for providing accurate information in all aspects for business communities, e.g. electronic information system and integrated delivery system. Specifically, through the APEC Net and APEC Service to Business Information Centre, businesses can update information about partners and markets.

 

APEC working groups on trade promotion also help businesses create and participate in many trade fairs and exhibitions in the region. In addition, APEC also put forth recommendations on harmonisation of product standards, elimination of corruption in the management and administration, and improvement of policy environment to support sustainable development of businesses.

 

APEC, with 21 member economies, including economic superpowers like the US, Japan, China and Russia as well as emerging economies, is becoming the most dynamic region on the globe. Vietnamese businesses have showed off their competency and dynamism on regional and international markets although they are newcomers there. Powered by active international economic integration policies, Vietnam has become one of most attractive investment markets in APEC and its market position in APEC is also increasingly uplifted.