Integration has helped Vietnam promote economic links with countries, contributing to improving the position in the international arena. The Ministry of Industry and Trade is proud of their significant contributions in the international economic integration process.
Solid foundations
Vietnam’s participation in ASEAN in July 1995 was seen as a breakthrough in the country’s international economic integration process, providing the foundation for Vietnam to participate in other agreements. In addition, the ASEAN Economic Community was established on December 31, 2015 with the main contributions of the Ministry of Industry and Trade, helping Vietnam expand bilateral and multilateral cooperation.
ASEAN remains Vietnam’s third largest export market after the US and the EU. Thanks to the signing of the ASEAN Trade in Goods Agreement, Vietnam’s exports to ASEAN increased from US$2.6 billion in 2000 to US$10.4 billion in 2010, US$19.12 billion in 2014 and over US$30 billion in 2015.
The participation in the World Trade Organization in January 2007 marked Vietnam’s comprehensive integration into the global economy. Vietnam has implemented many reforms to promote transparency and liberalization, while the services and retail sectors have witnessed strong changes with the presence of many convenience stores, supermarkets and shopping centers.
In addition to the participation in the World Trade Organization, Vietnam has joined other free trade agreements such as the Trans-Pacific Partnership (TPP), the ASEAN Free Trade Agreement, ASEAN-Korea, ASEAN-Japan, ASEAN-Australia-New Zealand, ASEAN-India, Chile-Vietnam, Japan-Vietnam, EU-Vietnam, Eurasian Economic Union-Vietnam and Korea-Vietnam free trade agreements.
The TPP signed in early February promises to make great advances in economic growth. In a favorable context, the TPP will help Vietnam’s GDP increase by US$23.5 billion by 2020 and US$33.5 billion by 2025, while exports will increase by US$68 billion by 2025.
Towards success
Export growth is seen as the most precise index for the impact and changes that follow free trade agreements taking effect. Average export growth in the last three decades reached an estimated 20 percent a year. The country’s total export turnover increased from US$698.5 million in 1985 to US$162 billion in 2015, while achieving trade surplus in the three consecutive years during the 2012-2014 period. Vietnam has to date established relations with more than 230 countries and territories in the world.
Vietnam currently has over 20 key exports with turnover of more than US$1 billion such as rice, coffee, pepper, cashew nuts, seafood, garments and textiles, footwear, wood and wood products. Exports are expected to be higher in the coming time thanks to the effect of the TPP and the EU-Vietnam Free Trade Agreement.
Minister of Industry and Trade Tran Tuan Anh said, “International economic integration has provided development space for the Vietnamese economy and has had a strong impact on growth, contributing to strengthening socioeconomic development, enhancing production capacity, expanding export markets, spurring economic restructuring towards industrialization and modernization, promoting trade and attracting more investment.”
Integration has brought positive effects for the economy, creating favorable conditions to accelerate institutional reforms, improve business environment and enhance competitiveness in accordance with international standards and practices.
However Tran Tuan Anh recommended that integration remained limited due to unsustainable export growth, low growth quality, large dependence on foreign-invested enterprises, high risks in trade deficit and inadequacy in export structure.
Vietnam must fully implement its commitments in the ASEAN Economic Community and new-generation free trade agreements in the coming time. It requires businesses to make careful preparations and study more about information in free trade agreements related to their sectors.
Minister of Industry and Trade Tran Tuan Anh said that positive results in the international economic integration process have significantly contributed to socioeconomic development in order to improve the country’s position in the international arena
Source : ven
Keyword : Industry, and, trade sector, records solid results.
