Creating Shared Value

In 2011, the world remains in economic recession with public debt crisis in many countries and high inflation in almost all the countries. All this adversely affects socio-economic development in Vietnam. In these conditions, the Vietnamese Party and State are determined to follow the correct path, applying creative solutions, developing the macro-economy, maintaining social stability and securing national defence and security. On the occasion of Tet of the Year of the Dragon, Vietnam Business Forum had an interview with State President Truong Tan Sang on the achievements in 2011 and the message to business community. Thanh Yen reports.

 

President Truong Tan Sang:

After 25 years of Doi Moi (renovation), Vietnam has escaped the category of poor countries and become a country with a high growth rate in the region, ensuring progress in social welfare and equality, poverty reduction and surpassing UN millennium development goals. Vietnam has also made large and stable steps in the integration process, from economic integration to all-round integration, contributing to peace and cooperation, development and connectivity among ASEAN, the Asia-Pacific and the world over.

 

The first and key area of integration is international economic integration. Vietnam has complied strictly and fully with its commitments to WTO. Vietnam has participated actively in the development of ASEAN community and five free trade agreements of ASEAN with major partners China, Japan, India, South Korea, Australia and New Zealand, signed an all-round economic partnership agreement with Japan and a bilateral free trade agreement with Chile, is actively participating in the negotiation for Trans Asia-Pacific Partnership agreement (TPP) and will soon start an official round of negotiations on free trade with the EU.

 

At present, Vietnam is moving from international economic integration to all-round integration, including culture, society, education, science and technology, national defence and security with suitable steps in each area. Vietnam has signed agreements on strategic partnership with many countries such as China, Russia, India, South Korea, Japan, Germany, the UK, etc. At the 19th ASEAN Summit as well as other summits, Vietnam participated with high sense of responsibility and pro-activeness, contributing to the stronger linkage and development of ASEAN community and the relations between ASEAN and partners, promoting the commitments, role and influence of the organizations of which Vietnam is a member.

 

Thanks to the correct policy, Vietnam has recorded brilliant achievements in foreign relations, heightening its role and position in the world. In spite of political turbulence in many regions and the world economy in crisis and recession, countries and economic groups in the region and the world over continue to maintain and even increasingly choose Vietnam as a reliable destination for their direct investments (FDI). ODA for Vietnam and Vietnam exports continue to increase. I wish to emphasize that investors decide to invest in Vietnam not simply because of the present conditions, but mainly because of their confidence in the future long- term stable development in Vietnam. Successful integration does not only increase economic development, but also promotes mutual trust and understanding between Vietnam and other countries, enhancing the role of Vietnam in the world, contributing to national defence and security as well as national sovereignty.

 

President Truong Tan Sang:

APEC 19 concluded with the approval of “The Honolulu Declaration – Towards a seamless regional economy.” The declaration consists of specific commitments on many important issues to the region, emphasizing the diversity and necessary consideration for different development standards of the economies in the region.

 

Vietnam made positive contribution to the meeting, expressing the views that APEC should take a comprehensive and all-round approach, with immediate and determined action at national, regional and global levels to avoid the danger of a new recession. Regarding each economy and sub-regional economic framework, APEC should give high priority to programmes and projects transforming growth models, decreasing the development gap, transferring technology, training human resources, developing infrastructure, reducing poverty and increasing intra-regional connectivity, especially building the ASEAN community and the master plan on ASEAN connectivity and Mekong sub-regional cooperation.

 

By practical economic development, Vietnam has demonstrated that economic development and environmental protection are two pressing and indivisible tasks. Vietnam is trying to ensure national energy security in line with comprehensive development of energy resources, efficient use and conservation of energy with increasing development of clean technology and clean energy.

 

At the dialogue with APEC Business Advisory Council (ABAC) on four subjects: regional economic integration, sustainable development, small and medium sized enterprises (SMEs) and job generation, Vietnam continued to emphasize the important contribution of SMEs to the development of APEC member economies. Vietnam has recommended that ABAC and APEC give high priority and create a favourable environment for SMEs and household businesses to operate, connect and participate in the global chains of value and production.

 

In addition, in the framework of APEC 19 week, Vietnam continued to participate in the negotiation on TPP agreement. This round of negotiation outlined an agreement to establish a free trade area encompassing countries in the Pacific Rim. It is a success for the meeting in which Vietnam has made its own contribution. 

President Truong Tan Sang:

The sovereignty of any country is sacred and inviolable. The position of the Vietnamese Party and State on the settlement of the East Sea issue is persistence in peaceful negotiation with all related parties on the basis of international law, especially the UNCLOS 1982, ASEAN DOC and agreement on guidelines on the East Sea between Vietnam and China signed during the visit to China of Party General Secretary Nguyen Phu Trong mid-October, 2011.

 

 At the same time, Vietnam insists on the position to maintain security for maritime shipping and free international shipping lines so that all countries can move freely and peacefully in the East Sea. This right has been recognized by international law and international practice in the interests of all concerned countries.

President Truong Tan Sang:

The Vietnamese Party and State have decided that in the long term, together with deep and all-round international integration, the economy will be restructured and transformed to increase quality, efficiency, competitiveness and ensure fast and stable development.

 

In the same direction, in 2012, Vietnam will focus on three key areas, namely: restructuring investments, first of all public investment; restructuring State-owned enterprises, especially economic groups and corporations; and restructuring financial-monetary system, in particular the network of commercial banks and financial institutions.

President Truong Tan Sang:

High inflation in many countries, public debt crisis in the US and EU, new manifestation of protectionism and deadlock in the Doha round are affecting all economies, including Vietnam. No doubt, the joint efforts of all State organizations at all levels, together with the business community and the people are required to make the best use of opportunities and turn challenges into opportunities. Vietnam is making every effort to restructure the economy, reform the growth model, upgrade institutions and issue policies to improve the business and investment environment. The difficulty is temporary; Vietnam remains an attractive destination for local and foreign investors. The State will have more favourable policies for business activities and development. The Vietnamese Party and State consider the success of businesses as the successes of the Vietnamese economy, and vice versa. Therefore, I hope that the business community (local and foreign investors in Vietnam) will continue their success of the past year, expand business activities, and improve productivity, quality, efficiency and competitiveness to become big enterprises, at the same time fully implement Vietnamese policy, develop harmonious labour relations, participate actively in social welfare and contribute more for Vietnam’s socio-economic development.

 

Deeper integration and more stable development is the objective that the Vietnamese Party, State and people are trying to attain. I hope that businesses and entrepreneurs will make important contribution to the achievement of that objective. Let us be reliable and responsible members of Vietnamese economy! The success of entrepreneurs means the prosperity of Vietnam!