Vietnam proactively integrates into global economy: Deputy PM

Tuesday, 2018-12-04 17:26:46
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Deputy Prime Minister Vuong Dinh Hue addressing the forum (Photo VNA)
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NDO/VNA – The Government of Vietnam persistently pursues the policy of comprehensive integration, with a focus on international economic integration in a proactive, pragmatic and politic manner, Deputy Prime Minister Vuong Dinh Hue affirmed at a forum held in Hanoi on December 4.

The official further said that trade protectionism is now on the rise and is seriously threatening the process of trade liberalisation and global economic integration.

Wider and deeper integration into the global economy means Vietnam will face more impacts from regional and global economic development trends, and that is why the country needs a proactive and flexible approach to cope with this issue, he added.

Sudhir Shetty, Chief Economist for the East Asia and Pacific Region of the World Bank, said Vietnam should enhance its macroeconomic response to international financial and trade turbulences, while strengthening national competitiveness with trade facilitation policies, improving the business environment, and strengthening connectivity between foreign investment and domestic suppliers.

Furthermore, Vietnam also requires extensive reform of trade and investment, including the simplification of non-tariff measures that distort trade, as well as promote trade in services, deepen regional and global integration, and increase commitments to supporting the reform of the global trading system.

Over the recent years, Vietnam has made progress in preparing for the new-generation free trade agreements (FTAs), including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) which was signed in March and ratified by the National Assembly in November, to come into force in January 2019.

Vietnam and the European Union announced the conclusion of the legal revision of the EU-Vietnam Free Trade Agreement (EVFTA) and agreed to keep the Investment Protection Agreement (IPA) separate from the FTA in June in preparation for the signing of the deal.

Vietnam has achieved certain outcomes in international economic integration, contributing to the national socio-economic development. The total import-export turnover in 2018 is estimated at US$ 475 billion, of which exports are expected to reach US$239 billion, a year-on-year rise of 11.2%.

The country also sought to increase goods exports to traditional markets and find new markets. Exports to countries that have FTAs with Vietnam in 2018 have seen high growth compared to 2017 with preferential rates reaching approximately 40%, a surge from 35% in previous years, indicating that Vietnamese firms are increasingly focusing on optimising opportunities from the implementation of free trade deals.