Vietnam embraces greater future

With its achievements in regional and global integration, the Socialist Republic of Vietnam has much to be proud of in celebrating its National Day on September 2.

His Excellency Prime Minister Nguyen Tan Dung warmly welcomed the international business community at the ASEAN 100 Leadership Forum in Hanoi, Vietnam on August 23, 2007, explaining to the enthusiastic audience why investment and trade in Vietnam has so much potential.

"First, the Vietnamese economy has been growing very well over the past 20 years, with the average growth of 7 to 8 percent per year. High growth is expected in the years to come," he said.

In 2005 and 2006, the economy grew at more than 8 percent, and the economy is expected to grow about 8.5 percent this year.

Economic and social infrastructure has improved to better meet the needs of development, the prime minister said.

"Second, Vietnam has the second largest population in Southeast Asia with 85 million people, and will reach 100 million in the near future," he said.

The country has a plentiful and young labor force, and 70 percent of the population is under 40 years old.

The Vietnamese people are hard working, dynamic, well educated, and adaptable to changes.

The labor costs remain low and the market institutions have been improved. The stock market has strongly expanded. By the end of 2006, about 200 businesses had been listed and market capitalization had reached $20 billion - equivalent to 38 percent of the GDP, according to Dung.

And the first sovereign bond issue in the international market was also very successful, he said.

"Third, the country's political and social stability and security have been firmly maintained. People's lives were substantially improved," he said.

Vietnam is recognized by the world for its outstanding successes in poverty reduction.

"By the end of 2006, we had fulfilled Millennium Development Goals in poverty reduction, 10 years before the deadline," Dung said.

The poverty rate was brought down from 60 percent in 1993 to 16 percent in 2006, and is expected to go down another 3 percent this year. Vietnam's investment climate has been more and more liberalized, transparent, and conducive to foreign business, the prime minister explained.

"The Vietnamese economy has been increasingly engaged with the world economy. Vietnam established diplomatic relations with over 170 countries and has trade ties with over 220 countries and regions," he said.

The country's trade value reached over $85 billion and has kept growing by 20 percent per annum during the past 20 years.

There are more than 8,800 foreign direct investment (FDI) projects from 80 countries and regions with the total capital of $80 billion.

"Vietnam also invested in 200 projects in 33 countries with the capital of $1.2 billion," he said.

Besides ASEAN, Vietnam is also a member of ASEM, APEC, and many other international economic organizations.

In January, Vietnam was admitted to the WTO. Vietnam was also nominated by the Asian group as the only candidate for the non-permanent membership to the United Nations Security Council for 2008-2009.

"These are recognitions from the international community for its achievements recorded in the reforms process as Vietnam's role in the region and the world," he said.

"The Vietnamese people, businesses, and state are always friendly and sincere to friends, partners, and investors, and we are always ready to meet you, to build the trust and understanding, and to work together for mutual benefit and development. FDI enterprises are part of our national economy. Your success is also our success," the prime minister said.

Cooperation with China

Seeing the region and the world as a place of great opportunity, the prime minister spoke about the strong ties between Vietnam and China.

"China is the top trading partner of Vietnam," he said.

In 2006, two-way trade amounted to over $10 billion. During the first seven months of this year, two-way trade reached more than $8 billion, and the amount is expected to reach $12 billion by the end of the year.

China is also a major FDI partner of Vietnam.

"The development and expansion of China will be a good opportunity for Vietnam to develop, and on the other hand, Vietnam's development will also be contributing to the development of China," he said.

(Shanghai Start 09/03/2007 page1)