Vietnam - a reliable friend and partner for others

(08/01/2008) PANO -

Achievements since the adoption of Doi Moi

To highlight achievements he said:

“Over the past 20 years, the economic growth rate has continuously stayed at 7-8 and over 8 per cent, the export turnover has year on year risen by 18 per cent on average and 22 per cent in the past 3 years. As a result, social and economic infrastructure, and people’s standard of living have remarkably been improved. The per-capita GDP is now US $830, up by 10 fold against in 1988. Especially, the proportion of poor households have reduced to less than 15 per cent. Cultural and social areas have also reaped great fruits and security, social order and political stability are increasingly maintained, while Vietnam’s status in the international arena has continuously risen. With these achievements, Vietnam has proved to be a dynamic market economy with large potentials for development, which has acquired reputation for reliability among international donors and become an attractive destination for many major foreign investors.”

Current shortcomings

Along the proud achievements, Prime Minister Nguyen Tan Dzung said, there are still a series of shortcomings at this point. He said Vietnam is still a developing nation with a low income and faces a number of challenges and difficulties, due to its low starting point.

He pointed out that Vietnam’s economic comparativeness, quality and efficiency are still low, the macro economy are not very firm. Socio-economic infrastructure and labour force’s skills and knowledge do not meet all the demands of development, which slows down the absorption of the investment source.

The administrative reform and anti-corruption work have seen some fruits, yet there are still complex administrative procedures that more or less bother investors.

In 2007, prices, most of which result from increased prices of oil, gold and raw materials in the world, are escalating although the rise is still under the control of the Government, he affirmed. That caused difficulty to lives of people, especially those who live in mountainous and natural disaster-hit areas, he went on to say.

Transportation is another serious problem in Vietnam. Traffic congestions and road accidents are requiring the Vietnamese Government and people to pay more attention. This also showed that the traffic system is very poor and needs much investment, said the Prime Minister.

Solutions for the problems

As the head of the Government, Mr. Dzung showed his determination to resolve the problems and lined out directions for further development. He referred to 5 tasks as follows:

“The year 2008 is central to the 5-year plan set by the Government. First, we will try to reach an economic growth rate of 9 per cent and make much progress in social equality, poverty reduction and environmental protection, and especially tap price hikes and stablise the macro economy. Second, the Government will draft out policies and specific measures to raise people’s living standard, particularly in remote and mountainous areas, home to ethnic people, and bring the rate of poor households down to 11-12 per cent. The third priority will be given to socio-economic infrastructure and development of human resources. We will especially focus on development of the traffic system, telecommunication and information networks to facilitate foreign investment projects. Fourth, Vietnam will keep stepping up the administrative reform process and perfect its market economy. Fifth, the Government will be strongly committed to the fight against corruption and wastefulness, and practice of thrift.”

4 favourable conditions for foreign investors

To conclude the opening session, the Prime Minister pointed to 4 favourable conditions for foreign investors they could enjoy when having decided to invest in Vietnam. They are as follows:

First, Vietnam has successfully transformed from a centralized to a market economy and now is a WTO member. Over the past 20 years, the Vietnamese economic growth rate has continuously stood at 7.5-8 per cent on average, over 8 per cent in the last 3 years, and according to forecasts, will hit 8.5-9 per cent in 2008 and forthcoming years.

Second, there is socio-political stability, which should be viewed as a fundamental condition for foreign investment. Investors’ interests and rights will be firmly guaranteed by the Government via Vietnam’s Law and Constitution.

Third, Vietnam with 87 million citizens is the twelfth most populous country in the world with most of them young, a necessary precondition to satisfy the demands of labour-intensive projects. Vietnamese people are traditionally hardworking, creative and keen on new things. What is more, labour costs in Vietnam are comparatively low so investment effectiveness is high.

Fourth, VN has been carrying out an independent but open-door, multilateral and diverse foreign policy. The Vietnamese Government is open and willing to make friends and to become a dependable partner for all peoples in the world. Vietnam is a proactive member in the international community, striving for peace, stability and cooperation in the region and world. Vietnamese people are warm and hospitable to all foreign people and investors. It should be noted that Vietnam always welcomes foreign investors in the spirit of equality cooperation and mutual benefits.

After the opening session, many foreign delegates appreciated the Prime Minister’s speech and answers.

US Ambassador to Vietnam Michael Michalak said that all the issues the Prime Minister mentioned were of great concern and he was interested in the way the Prime Minister handled the questions at the session.

“The prime Minister has excellently made his speech and comprehensively answered a series of difficult questions,” said Stefan Heitmann, General Director of Zuellig Pharma company.

The Prime Minister had showed Vietnam’s openness, strong commitments and sincere willingness to receive foreign investment and boost cooperation with foreign partners so more investors should want to do business in Vietnam, said a name-hidden top official from EuroCham in Vietnam.

Thu Nguyen