External finance in the context of international economic integration.

(Baonghean)To implement the Financial Strategy until 2020, especially the solutions aimed at strengthening cooperation and proactively integrating into the international financial sector, a comprehensive foreign policy orientation and a unified implementation plan are needed. This involves coordinating financial foreign policy activities and focusing resources on contributing to the common goal of completing the Financial Strategy until 2020.

Leaders of Nghe An province promote foreign investment in Japan. Photo: Nguyen Van Nam

The relationship between the state and the private sector is changing.

According to the Ministry of Finance's recent assessment of external finance, in the context of increasing interdependence in the international arena, economic fluctuations in one country will have a significant impact on many others. The interdependence within the financial system is even greater, both in terms of the degree and speed of influence, compared to traditional relationships such as trade or investment.

Accordingly, economic relations are shifting towards a multipolar system, with the emergence of new economic centers (BRICS) alongside traditional ones (the United States, Japan, and the EU). The focus of economic growth is shifting towards greater sustainability and balance: themes of green growth, inclusive growth, fiscal sustainability, and public debt are becoming recurring topics in many international cooperation forums.

Therefore, the role of the state in the economy is becoming increasingly important, and the relationship between the public and private sectors is shifting towards a more closely intertwined relationship. The private sector relies more heavily on the state, especially during crises (government bailout packages and economic stimulus), and the state is also increasingly seeking private resources to support the development of public goods and services (PPP models).

Increased risks and sensitivities of the economy.

While the international context is as described, domestically, the economy continues to integrate deeply into the regional and international economies, with accession to the WTO and TPP being significant milestones. Integration brings certain benefits, but also increases risks and the sensitivity of the economy. The role of policy-making bodies is crucial in helping the business sector prepare for changes in the business environment, thereby preventing adverse impacts and taking advantage of the benefits brought about by integration.

However, the remaining issues are also very complex, requiring more appropriate guidance and policies. According to the Ministry of Finance, besides the major orientations, there are still no specific goals for international financial cooperation in the medium and long term.

Comrade Le Ngoc Hoa, Vice Chairman of the People's Committee of Nghe An province, and the Nghe An provincial delegation promote investment in Thailand. Photo: Nguyen Van Nam

Continue to expand priority areas.

To help address these issues, the Ministry of Finance stated that the foreign policy objectives and orientations for the finance sector in the 2015-2020 period focus on specific goals and tasks. These include continuing to expand integration in priority areas such as the stock market, insurance, accounting and auditing, and gradually adopting common international standards and practices.

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