Promoting economic cooperation with Middle East-North Africa partners

On the morning of November 4, Prime Minister Nguyen Tan Dung attended the Economic Cooperation Forum between Vietnam and Middle East - North Africa partners - a large-scale event to promote economic cooperation between Vietnam and countries in this region, held for the first time in our country.

Leaders of several ministries, sectors, and enterprises of Vietnam, representatives of the Governments of Middle East-North Africa countries; representatives of several international and regional organizations; leaders of enterprises of several Middle East-North Africa countries... attended the Forum.

Prime Minister Nguyen Tan Dung speaks at the Economic Cooperation Forum between Vietnam and Middle East-North Africa partners. Photo: VGP/Nhat Bac

Great investment cooperation opportunity

Despite the geographical distance, Vietnam and the Middle East-North Africa countries have long had a traditional friendly cooperative relationship. The good political relations between Vietnam and the Middle East-North Africa countries have created a solid foundation for trade, investment, labor cooperation... between the two sides.

Currently, Vietnam has established diplomatic relations with all countries in the Middle East-North Africa region. Vietnam has 12 diplomatic representative agencies in Middle East-North Africa countries and 15 countries in the region have opened representative agencies in Vietnam.

Over the past 10 years, two-way trade turnover between Vietnam and countries in this region increased by 878%, from 889 million USD (in 2002) to 7.4 billion USD (in 2012), of which turnover with some partners has exceeded 1 billion USD/year. Many enterprises in this region are actively participating in investment in Vietnam, especially in the fields of oil and gas, seaports, industry and real estate... A number of Vietnamese enterprises have implemented investment projects in the region, notably the oil and gas exploration and exploitation project of the Vietnam National Oil and Gas Group in Algeria. Currently, Vietnam has about 26,000 workers working in countries in this region.

Panorama of the opening ceremony of the Forum. Photo: VGP/Nhat Bac

However, the results achieved are still modest compared to the great potential for cooperation between the two sides. Although the two-way trade turnover between Vietnam and countries in the region has increased rapidly, it only accounts for about 5% of Vietnam's total import-export turnover in 2012. Meanwhile, the total investment volume in Vietnam accounts for a very small proportion of the tens of billions of USD in annual foreign investment flows of Middle Eastern and North African countries; the number of Vietnamese workers also accounts for less than 0.3% of the total number of foreign workers working in this region.

Improve the effectiveness of cooperation mechanisms to support businesses

Speaking at the Forum, Prime Minister Nguyen Tan Dung emphasized that Vietnam and Middle Eastern and North African countries have great advantages and potentials that can complement each other for cooperation and development.

After nearly 30 years of implementing the renovation and opening up process, Vietnam has become a middle-income developing country and is steadily moving forward on the path of industrialization and modernization of the country. Vietnam is an attractive investment destination with a stable political and social environment, a potential market and an abundant skilled labor force with a population of 90 million people, located in the dynamically developing Asia-Pacific region and a growth engine of the world economy. The Middle East-North Africa countries have an important geostrategic and geoeconomic position, connecting the three continents of Asia-Europe-Africa, with abundant capital and rich resources with the world's leading oil and gas reserves.

Prime Minister Nguyen Tan Dung and heads of delegations from countries in the Middle East and North Africa attend the Forum. Photo: VGP/Nhat Bac

Prime Minister Nguyen Tan Dung emphasized that this Forum with the participation of many policy makers and enterprises is of special importance. The Vietnamese Government hopes that the Forum will create more momentum and new breakthroughs, promoting the multi-faceted friendship and cooperation between Vietnam and the Middle East and North Africa countries to develop more strongly and effectively, especially in the fields of economics, trade, investment, oil and gas and labor.

With such a common spirit, Prime Minister Nguyen Tan Dung suggested that delegates attending the Forum focus on discussing three major contents.

Firstly, providing information on priority investment and business sectors of each country; experience to create an increasingly attractive and highly competitive investment and business environment to create the best possible conditions for enterprises of both sides to invest and do business successfully in each other's markets. Proposing specific initiatives and measures to improve the practical effectiveness of cooperation mechanisms so that the Government of Vietnam and the Governments of the Middle East and North Africa countries can support enterprises more effectively, promptly remove difficulties and obstacles in their investment and business activities.

Second, discuss and find measures to promote and expand cooperation in areas where each side has strengths, especially trade, energy, mining and infrastructure development; build and sign agreements to create a stable and long-term legal corridor for cooperation in these areas.

Third, develop orientations and measures to enhance and further improve operational efficiency in areas such as agriculture, labor, education and training, health care, culture and tourism. Vietnam and some African countries have achieved initial positive results in cooperation in these areas. These are useful practical experiences for developing and implementing bilateral cooperation projects between Vietnam and countries in the Middle East-North Africa region or multilaterally with the support of third parties.

Vietnam has abundant labor resources with increasingly improved skills and expertise, which can meet the growing labor demand of Middle Eastern and North African countries. This is an area with a lot of experience in cooperation and needs to promote this great potential for cooperation.

Prime Minister Nguyen Tan Dung and UAE delegates at the area introducing activities in the oil and gas sector of the neighboring country. Photo: VGP/Nhat Bac

Prime Minister Nguyen Tan Dung said that Vietnam is vigorously implementing the socio-economic development strategy until 2020, focusing on perfecting institutions, legal systems, infrastructure, improving the quality of human resources, along with restructuring the economy and renewing the growth model to create momentum for rapid and sustainable development. Vietnam is also participating in negotiations on important free trade agreements such as the Regional Comprehensive Economic Partnership Agreement (RCEP), the Trans-Pacific Partnership Agreement (TPP), the free trade agreement with the EU, with the Customs Union of Russia-Belarus-Kazakhstan and with other partners... These agreements will open up great cooperation opportunities not only for Vietnamese enterprises but also for foreign enterprises to invest and do business in Vietnam.

“We are committed to always creating favorable conditions for foreign investors to invest and do business long-term in Vietnam. Your success is also the success of Vietnam,” Prime Minister Nguyen Tan Dung affirmed.

The Prime Minister expressed his belief that this Economic Cooperation Forum between Vietnam and Middle East and North African partners will be the beginning of a new phase of cooperation in the friendly relations between Vietnam and Middle East and North African partners.

According to Chinhphu.vn