Mr. Truong Dinh Tuyen: 'Only with a superior system can we run faster than China'
The former Minister of Trade believes that joining the Trans-Pacific Partnership (TPP) Agreement is opening up great opportunities for Vietnam in institutional reform, economic innovation, and escaping dependence on China.
The above comments were made by Mr. Tuyen and many experts at the conference on the Trans-Pacific Partnership Agreement (TPP) organized by the United States Agency for International Development (USAID) and the Foreign Affairs Committee of the National Assembly in Vinh Phuc on March 4-5. At the forum, the agreement signed on February 4 was once again identified as a placeVietnam - despite being the country with the lowest level of development - still benefits greatly. Among them, the opportunity to escape economic dependence on China is highly appreciated.
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Sharing with many experts, Mr. Tuyen said that TPP is a great opportunity for Vietnam. Photo: NM |
As an individual who has made a major contribution to the country's international economic integration process, former Minister of Trade - Truong Dinh Tuyen believes that joining the TPP will help Vietnam attract investment from large partners with source technology. It also creates a framework for institutional reform, improves the business environment, promotes economic restructuring, and transforms the growth model...
"TPP will create a new balance from expanding export markets instead of exporting agricultural products and raw materials to China. This is very good, helping Vietnam to be less dependent and gradually escape from China," he commented.
Mr. Tuyen commented that joining the TPP is also implementing the strategy of diversifying and multilateralizing diplomatic relations, which is the basis for Vietnam to expand cooperation worldwide. This is a strategic step, aiming to be proactive economically in the face of unpredictable fluctuations from China.
"For the ASEAN Economic Community (AEC), competition will be very high because products in ASEAN are relatively similar. Due to the free movement of skilled labor, the quality of human resources is also a big challenge. Particularly with TPP and Vietnam - EU FTA, livestock products will face great competition from imported goods, although the tariff reduction roadmap is quite long (8-12 years) because the competitiveness of Vietnamese products is very poor. Food hygiene and safety is also a major obstacle. Some vulnerable groups, especially enterprises with low competitiveness, the agricultural sector and farmers. The gap between rich and poor will widen, affecting development orientation. Challenges in enforcement, law amendment, human resource training... Although the challenge is a direct pressure, the extent of the pressure depends on the response of the subject, which in this case is the State and enterprises. For the business community, it is necessary to clearly understand the commitments to implement, improve competition to seize opportunities, and resolve challenges. |
"If we want to escape China, there is no other way but to reform the system. Vietnam's system is different from China's, and is superior, then we can run faster and escape them. The next stage is that Vietnam needs to innovate technology and constantly innovate," said Mr. Tuyen.
Minister of Industry and Trade - Vu Huy Hoang also stated that TPP opens up opportunities to diversify imports and exports, avoiding dependence on one country when an incident occurs that affects the entire economy.
"TPP, along with a series of FTAs that have been and will be participating in, will create conditions for Vietnam to implement its strategy of diversifying export markets, targeting many new partners with higher economic value, thereby stabilizing the macro-economy," the Minister said.
Sharing the same view, Ms. Virginia Foote - President of the American Chamber of Commerce (Amcham) also said that TPP is the key to help Vietnam in general and businesses in particular rise strongly, escaping dependence on China. This new generation free trade agreement will create momentum for economic development in Vietnam, increase tourists and foreign capital. Many American investors are coming to Vietnam to seek business cooperation opportunities.
Deputy Minister of Industry and Trade - Tran Quoc Khanh said that in the past, when joining the WTO, Vietnam was much weaker than now, but reality has proven that after joining this organization, import and export turnover increased rapidly. Now, joining the TPP, Vietnam is also the least developed country but is still determined to enter this playground because the benefits of expanding the market and increasing imports and exports are real. "The economy only develops when we change and accept new challenges. TPP is a new impetus, creating stable macro conditions for businesses to develop," said Mr. Khanh.
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Trans-Pacific Partnership Conference in Vinh Phuc. Photo: Tu Cuong |
US Ambassador to Vietnam Ted Osius recalled that in 2008, when the TPP negotiations had just begun, many people thought that an underdeveloped country like Vietnam could not enter the big playgrounds with many high standards. "The Vietnamese people are extraordinary, they have boldly accepted for the sake of future prosperity," he commented.
According to the Ambassador, putting the most complex trade agreement with the highest international standards into practice will be a difficult and tiring job for Vietnam. "Difficulties lie ahead. But the US will always stand behind Vietnam, helping to implement the agreement. We will always be there, as partners, as companions, helping Vietnam continue to modernize its economy and bring a better life to its people," said Mr. Osius.
According to the General Statistics Office, China is still the market that Vietnam depends on the most in terms of trade balance, with a trade deficit of 32.3 billion USD last year, many times larger than the overall trade deficit of the entire economy (3.2 billion USD). The trade deficit with China has continuously increased rapidly over the years. Import turnover from this market alone is estimated at 49.3 billion USD, accounting for 29% of total import turnover - the largest among countries with which Vietnam has a relationship to purchase goods. The main imported goods include machinery, equipment, tools, spare parts of various types of phones and components; electronics, computers and components. Exports to China last year were estimated at 17 billion USD, mainly in the group of vegetables, fruits, textiles, footwear, etc. |
According to VNE
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