Vietnam’s economic prospects through foreign eyes

08:20 | 24/02/2019 Cooperation

(VEN) - International organizations, foreign business associations and diplomatic missions in Vietnam look back at the past year with satisfaction and eye 2019 with optimism. Vietnam Economic News heard their praise along with recommendations to help Vietnam promote sustainable economic growth and international integration. 

vietnams economic prospects through foreign eyes
Konaka Tetsuo, Chief Representative of the Japan International Cooperation Agency (JICA) in Vietnam

Konaka Tetsuo, Chief Representative of the Japan International Cooperation Agency (JICA) in Vietnam: Avoiding the middle-income trap.

Vietnam has maintained its high economic growth averaging more than six percent annually over the past decade.

To achieve sustainable growth and become a modern industrial nation, Vietnam needs to accelerate institutional reform, develop human resources, upgrade infrastructure, increase productivity and enhance national competitiveness.

To make the most of its potential and escape the middle-income trap, Vietnam needs to pursue sustainable and comprehensive economic growth in a reasonable manner, which is synonymous with developing a new growth model instead of depending on capital investment, low labor costs and natural resources as in the past.

JICA has cooperated with Vietnam in various fields. It has supported Vietnam’s efforts to establish an economy with the private sector playing the role of a major force; develop infrastructure and human resources, especially higher education, skills and vocational training; reorganize state-owned enterprises to enhance their efficiency; and develop the agricultural sector where productivity remains low despite its great development potential.

Overall, JICA will further its tight cooperation with Vietnam through various projects in order to implement international commitments on sustainable development goals.

vietnams economic prospects through foreign eyes
Kadowaki Keiichi, Chairman of the Japanese Chamber of Commerce and Industry in Ho Chi Minh City (JCCH)

Kadowaki Keiichi, Chairman of the Japanese Chamber of Commerce and Industry in Ho Chi Minh City (JCCH): Japanese businesses will increase investment in Ho Chi Minh City.

JCCH highly appreciates the support of the Vietnamese government and Ho Chi Minh City’s authorities and their willingness to create favorable conditions for Japanese companies to invest in Vietnam. JCCH currently has 1,000 members, an increase of about 70 members compared with 2017.

Ho Chi Minh City is applying a specific mechanism to develop as a creative and smart city in accordance with National Assembly Resolution 54/2017/QH14.

This is expected to create a more favorable investment environment for Japanese companies. However, Japanese companies are still concerned about environmental problems, traffic congestion and flooding. They expect the city to deal effectively with these problems to facilitate their operations.

vietnams economic prospects through foreign eyes
Alexey Popov, Russian Consul General in Ho Chi Minh City

Alexey Popov, Russian Consul General in Ho Chi Minh City: An abundance of Russia-Vietnam cooperation events planned for 2019.

Vietnam is Russia’s major trading partner in ASEAN. In 2018, the two countries saw bilateral cooperation expanding in various fields, partly resulting from the free trade agreement between the Eurasian Economic Union and Vietnam already taking effect.

Trade and investment are major areas of the bilateral strategic partnership. The Russia-Vietnam Intergovernmental Committee for Economic-Commercial and Scientific-Technological Cooperation is an effective coordination mechanism.

Bilateral investment cooperation has been promoted with active support of a high-level working group on prioritized investment projects under the guidance of the two ministers of industry and trade.

The two countries are cooperating in 17 prioritized projects totally worth several billion US dollars in the fields of energy, machinery manufacturing, communications, information, aviation, transportation, infrastructure, light industries, metallurgy, chemicals, extraction of natural resources, agriculture and tourism.

vietnams economic prospects through foreign eyes
Vu Minh Anh, Consul of Mexico in Ho Chi Minh City

The year 2019 will be full of Russia-Vietnam cooperation events, including the Year of Russia in Vietnam and the Year of Vietnam in Russia, to celebrate the 25th anniversary of the treaty on the basic principles for bilateral friendship and prepare for the 70th anniversary of bilateral diplomatic relations in 2020. The two sides are discussing the agenda for 130 major events.

Vu Minh Anh, Consul of Mexico in Ho Chi Minh City: Promoting community and business connections.

In 2016, the Vietnamese Ministry of Industry and Trade and the Mexican Ministry of Economy signed a memorandum of understanding on the establishment of a joint committee on economic, trade and investment cooperation.

Since then, the two sides have participated in activities of the joint committee to promote bilateral cooperation in these fields.

During my term of office in Vietnam, I have given priority to boosting economic and cultural relations between Mexico and Ho Chi Minh City, in particular, and Vietnam, in general, as well as combining diplomatic and cultural activities with economic, trade and investment promotion activities. Promoting the connection between the local and foreign communities is an important task.

Thanh Thanh