Prime Minister Nguyen Xuan Phuc answers questions about Vietnam-Australia relations

Dear Prime Minister, since 2015, both Vietnam and Australia have announced that the two countries will establish a Strategic Partnership. Could you please tell us when that event will take place and what it means for the relationship between the two countries? Could you please share the measures to promote diplomatic and defense relations between the two countries?

Prime Minister Nguyen Xuan Phuc:This is the determination of both Vietnam and Australia. During this official visit to Australia, Prime Minister Malcolm Turnbull and I will sign the Joint Statement establishing the Vietnam-Australia Strategic Partnership, creating a political and legal framework to elevate the bilateral relationship in the coming time.

The upgrading of relations to a Strategic Partnership is of great significance, opening a new chapter in bilateral relations, bringing bilateral relations to a new height and deepening cooperation, meeting the interests of the people of both countries, while contributing to peace, stability, cooperation and development in the region and the world. This event is particularly important at a time when the two countries are organizing activities to celebrate the 45th anniversary of diplomatic relations and the 20th anniversary of defense relations.

To develop the relationship commensurate with its strategic nature, the two countries need to continue to consolidate and expand cooperation in all areas. Particularly in the political-diplomatic and defense-security pillars, focus on the following contents:

The first,continue to strengthen political trust and mutual understanding through visits and contacts at all channels and levels, especially visits by high-ranking leaders. In that spirit, Vietnam welcomes the visit of the Governor-General of Australia to Vietnam in May 2018 and considers this an important foreign affairs activity of 2018. At the same time, review and promote the effective implementation of existing bilateral cooperation mechanisms, on that basis consider upgrading or establishing new mechanisms to discuss and consult on important and strategic bilateral, regional and international issues.

Monday,Close coordination at regional and international forums, especially ASEAN, APEC, ASEM, the United Nations, etc., effective coordination in implementing the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), while strengthening cooperation in issues related to regional security and issues of mutual concern such as poverty reduction, natural disaster and epidemic prevention, climate change response, and implementation of sustainable development goals, etc.

Tuesday,Regarding defense and security, the two sides need to actively implement diverse cooperation in many fields according to the agreements reached; effectively maintain cooperation mechanisms; expand cooperation in the fields of search and rescue, counter-terrorism, anti-human trafficking, cyber security, water security; and actively consult and support each other in regional defense and security cooperation mechanisms such as ADMM, ADMM+, ARF... Vietnam highly appreciates and hopes that Australia will increase experience exchange, information sharing, and support Vietnam in English language training, training forces participating in peacekeeping and overcoming the consequences of war.

Among ASEAN countries, Vietnam is becoming the fastest growing export market ofAustralia. Prime Minister, please share your assessment of opportunities for businesses.Australia?

Prime Minister Nguyen Xuan Phuc:Economic, trade and investment relations between Vietnam and Australia have developed strongly in recent times. Currently, Australia is Vietnam's 8th largest trading partner with a turnover of nearly 6.5 billion USD in 2017. However, the potential for cooperation between the two countries and opportunities for Australian businesses to do business and invest in Vietnam are still very large.

The first, Vietnam is a dynamically developing economy with a high growth rate in the region. In 2017, Vietnam's economy grew by 6.81%, the highest in the past 10 years. At the same time, with its strategic location in the region, maintaining political stability, a market size of nearly 100 million people with an income of 2,400 USD/person and increasing..., Vietnam is an attractive destination for foreign investors.

Monday, with the determination to promote economic reform and growth model innovation, the business and investment environment in Vietnam is improving day by day. Many economic indicators such as the Business Environment Index (DB 2018 of the WB) increased by 14 places, the Competitiveness Index (GCI 2018 of the WEF) increased by 5 places, creating an attractive, transparent and equal playing field for foreign enterprises.

Tuesday, a highly open economy with a 2017 trade turnover of 425 billion USD, equivalent to 190% of GDP, Vietnam is integrating deeply and comprehensively. Vietnam is currently implementing and negotiating 16 free trade agreements (FTAs), including many new generation FTAs, opening up many new opportunities for cooperation between Vietnam and its partners, including Australia. The two countries' joint implementation of the ASEAN-Australia-New Zealand FTA and the signing of the CPTPP Agreement on March 8, 2018 will help to facilitate trade and investment flows between the two countries.

In that context, the establishment of a Strategic Partnership will bring new opportunities for businesses of the two countries. With advantages in capital, advanced technology, and management experience, Australian businesses can take advantage of this opportunity to expand their business and invest in Vietnam in areas where Australia has strengths and Vietnam has demand such as high technology, manufacturing, processing, environmentally friendly energy, etc.

Vietnam is one of the main economies benefiting from the TPP,but some of those benefitsarrivefrom economic reforms to meet the high standards of the original agreementHowever, the US has withdrawn from the TPP, which means the new Agreement will generally have lower standards than the original. So, could you tell us, Prime Minister, whether Vietnam will continue to propose economic reform options?

Prime Minister Nguyen Xuan Phuc:Economic reform is a policy decision, a need for innovation and development of Vietnam itself, with or without TPP.

Despite the absence of the United States, the CPTPP is still a new generation FTA with high standards, great openness, balanced interests of all parties, comprehensive and progressive, a "model" for regional economic cooperation and linkage in the context of trade protectionism appearing in many places around the world.

We believe that participating in FTAs, including CPTPP, will create more momentum for reform. Therefore, in the coming time, we will promote economic restructuring, improve the legal and policy framework, create a level playing field, a favorable business environment, and strictly and fully implement commitments on trade liberalization and facilitation, and market opening.

NOn the occasion of attending this ASEAN-Australia Special Summit, could you please give your assessment of the development potential of the ASEAN-Australia Strategic Partnership in the coming time?

Prime Minister Nguyen Xuan Phuc:After upgrading to Strategic Partnership in 2014, ASEAN-Australia relations have been strengthened in many areas, from politics-security, economics-trade-investment to culture-society and development cooperation. However, the space and potential for ASEAN-Australia cooperation is still very large, especially in the following areas:

The first, ASEAN-Australia need to continue to affirm their high commitment to maintaining economic connectivity in the region. Accordingly, effectively implement the ASEAN-Australia-New Zealand Free Trade Agreement (AANZ FTA), a comprehensive framework with a high level of liberalization signed for the first time by ASEAN with its partners and in the future there will be the Regional Comprehensive Economic Partnership (RCEP).

MondayIn the era of the 4.0 industrial revolution, economic development based on innovation plays a key role. The two sides need to further promote cooperation in areas such as startups, connecting small, medium and micro enterprises, contributing to diversifying regional and global value chains...

Tuesday, the two sides share views on many strategic issues, thus being able to promote cooperation, build trust, and jointly create an open, transparent and inclusive regional architecture, in which ASEAN-led cooperation forums with partners, including Australia, are important frameworks to promote efforts in this direction.

WednesdayCooperation in responding to non-traditional challenges such as terrorism, extremism, natural disasters, epidemics, climate change, etc. are areas of common interest to ASEAN and Australia that need to be promoted with the goal of bringing a peaceful and safe life to the people.

I believe that on the foundation of good cooperation built over more than four decades, we can continue to expand and deepen the ASEAN-Australia Strategic Partnership in the coming period./.