Keeping up with new economic trends, diplomacy is one step ahead
Promoting economic diplomacy, Vietnamese ambassadors abroad, heads of ministries, branches, domestic business associations as well as localities, including Nghe An, have implemented many effective activities. At the same time, forecasting and proposing solutions to grasp and anticipate new economic trends to keep pace with the global market to increase competitiveness.
Assessing new economic trends
On August 15, 2022, the Central Party Secretariat issued Directive No. 15-CT/TW on economic diplomacy to serve national development until 2030. Accordingly, ministries, branches and localities, according to their functions and tasks, have developed and implemented plans.
After nearly 2 years, with efforts to promote economic diplomacy, many international investment survey delegations and large projects have come to Vietnamese localities. At the conference to promote economic diplomacy held on July 18, Minister of Foreign Affairs Bui Thanh Son said that in the first 6 months of 2024, Vietnam welcomed many large corporations and enterprises, such as: NVIDIA, Apple, Intel, Google, Inforsys, Siemens... Along with that, it welcomed delegations of hundreds of large enterprises from Northern Europe, the US, Canada, Japan...
Embassies, ministries and sectors also took full advantage of the network of 16 Free Trade Agreements (FTAs) that Vietnam had signed with organizations and countries to sign with 60 partners, promote negotiations to upgrade many current FTAs and speed up FTA negotiations with new partners, promote investment, and attract resources to develop new and breakthrough industries.
Vietnamese Ambassador to China Pham Sao Mai - Deputy Minister of Foreign Affairs said that the high-level diplomatic activities between Vietnam and China in recent times have created a strong momentum, opening up new opportunities and cooperation spaces for economic and trade relations between the two countries; creating many opportunities to increase exports of Vietnamese goods to China. In addition, another potential area of the Chinese market that needs to be promoted is attracting tourists when the two sides have basically restored commercial flights with about 200 flights/week.
Regarding the renewal of traditional growth drivers and the effective exploitation of new growth drivers, Mr. Pham Sao Mai suggested that it is necessary to continue registering more export enterprises and growing areas for agricultural products whose markets have been opened between Vietnam and China. Along with that, it is necessary to promote the signing of protocols on agricultural product exports; on hygiene and quarantine of naturally exploited aquatic products; on opening the export of some other fruits and medicinal herbs...
China is currently promoting the development of a system of modern industries as a driving force for new quality production such as the production of new energy cars, solar batteries, etc. Therefore, Vietnamese enterprises need to pay attention to cooperation in science and technology, artificial intelligence, high-tech agriculture, energy, green transformation, digital transformation, technology for preserving and processing agricultural, forestry and aquatic products; exporting green consumer equipment, providing commercial products and tourism services to exploit the potential of the "silver hair economy" due to the problem of population aging in China, which is forecasted to be a large potential market.
Another market that Vietnamese people and businesses have been interested in and exploited for many years, bringing high economic efficiency, is Japan. Forecasting economic trends in Japan, Mr. Pham Quang Hieu - Vietnamese Ambassador to Japan stated: In the first half of 2024, economic cooperation between Vietnam and Japan has had some remarkable results such as in science and technology, research and training of human resources in the semiconductor industry, textile and garment exports, and soon in the field of digital transformation. Currently, the Vietnamese Embassy in Japan has just promoted the establishment of the Vietnam Digital Transformation Association in Japan.
In addition, labor export to Japan is expected to continue to increase. In the first half of 2024 alone, more than 40,000 Vietnamese workers came to Japan to work (accounting for 60% of the number of Vietnamese workers exported abroad, and the largest labor import force in Japan).
In addition, in Japan there are currently two new business trends that need to be exploited, which are Japanese enterprises taking advantage of Vietnam's FDI attraction mechanisms to develop the processing of Vietnamese aquatic and seafood products for export to third countries, or export back to Japan. The second trend is the increase in indirect investment through business mergers and acquisitions.
Also through the Conference on promoting economic diplomacy, domestic ministries, branches and business associations made comments on new economic, production and business development trends in the world that Vietnam needs to quickly grasp. These are the application of science and technology, digital transformation; development of supporting industries, logistics; high-tech manufacturing such as semiconductor chips; organic agriculture, circular economy; new energy industries...
Nghe An promotes economic diplomacy
Implementing Directive No. 15-CT/TW, the Provincial Party Committee and People's Committee of Nghe An province have issued an implementation plan with 6 key tasks, focusing on expanding and deepening cooperative relationships, especially with neighboring countries, strategic partners, and comprehensive partners; Building economic diplomacy for development, focusing on people and businesses; Implementing and effectively utilizing new-generation free trade agreements (FTAs) and trade agreements to which Vietnam is a member, in order to connect Nghe An to the national and international supply chain; proactively implementing common rules and regulations on international trade.
In particular, in the first half of 2024, the Provincial People's Committee sent 42 delegations on business trips abroad to Australia, China, Thailand, Laos and European countries according to the approved plan, with the aim of strengthening and expanding cooperative relations with foreign partners, attracting investment, trade, tourism and other fields.
At the same time, the organization welcomed and worked with 13 delegations/198 foreign people; granted permits to 38 delegations/121 foreign people to work, mainly for foreign affairs, surveys, investment research, working on programs and projects... Through economic diplomacy between Nghe An province's leaders and foreign localities, in 2024, an international agreement was signed between Nghe An Province Investment, Trade and Tourism Promotion Center and the Vietnam Business Association in Australia.
The Provincial People's Committee also promotes investment connections with investors from countries and territories such as: Korea, Taiwan, Australia, China, Japan, European countries...; works with major investors, such as Indochina Capital Vietnam Group, Joint Venture of Dears Brain Joint Stock Company and N&V Bridge Company Limited, investor Best Pacific International Holdings Limited (China), JICA Vietnam Office... to speed up the progress of key projects in the province; Coordinates with infrastructure investors VSIP, WHA, Hoang Thinh Dat to connect and work with businesses to learn about investment in the Southeast Economic Zone such as: Hainan Drinda New Energy Technology Group (China), Asia Potash Company (China), HB Electric Vehicle Company (Korea), Vietnam - Japan Logistics Company (Japan), US Asia Links Company (USA)...
First 6 months of 2024: Nghe An has 6,284 workers working abroad under contracts. Export turnover of goods reached 1,350.5 million USD; import turnover of goods reached 1,018.45 million USD. Newly licensed 3 FDI projects with a total investment capital of 48 million USD.
Currently, the province is mobilizing 6 new projects using ODA capital and preferential loans with a total estimated investment of more than 8.86 trillion VND, of which the expected loan capital is more than 6.87 trillion VND. Currently, 1 project has been approved by the Prime Minister for investment policy and is preparing to sign a loan agreement with the sponsor.
