Full text of Prime Minister Nguyen Xuan Phuc's speech at the VBS Conference

On the morning of November 7, in Da Nang, Prime Minister Nguyen Xuan Phuc delivered an important speech at the Vietnam Business Summit.

On the morning of November 7, the Vietnam Business Summit (VBS) - the next important event on the second day of the APEC 2017 High-Level Week in Da Nang - officially opened.

Prime Minister Nguyen Xuan Phuc attended and delivered an important speech on the topic.Vietnam integrates, dynamically innovates, and develops comprehensively.

Prime Minister Nguyen Xuan Phuc.

Dear Ms. Victoria Kwakwa, World Bank Vice President for East Asia and Pacific,

Dear Mr. Philipp Rosler, Managing Director, World Economic Forum,

Dear Ambassadors, Heads of diplomatic missions and international organizations in Vietnam,

Dearexperts, investors, domestic and international businesses,

On behalf of the Government of Vietnam, I warmly welcome you and all of you attending the Vietnam Business Summit held on the occasion of APEC 2017 High-Level Week and would like to extend my warmest regards to all distinguished guests, delegates, representatives of organizations and businesses, experts, domestic and international investors.

Along with many events of the APEC Conference, the ConferenceSummitKVietnam businessheld in Da Nang city and Hoi An ancient town, which has been a bustling trading port since the early 17th century by merchant fleets from Japan, China, India and Europe; laying the foundation for the development of trade for hundreds of years. Up to now, Vietnam is still striving to improve itself to continue to be a "reliable business partner", full of promise in the international business community and of other countries. According to AmCham Singapore in September 2017, 56% of surveyed businesses considered Vietnam as the best trading partner.

The World Bank (WB) report has shown that Vietnam's economic transformation over the past 30 years has been of great significance. With the implementation of extensive economic reforms, it has been transformed into a high GDP growth rate, reaching an average of nearly 7%/year, and people's income has also been raised. In 2017, GDP is expected to increase by 6.7% and strive to increase by 6.5-7% in 2016 - 2020. Vietnam's average income per capita in 2017 increased to about 2,300 USD (calculated according to PPP, it is about 6,800 USD).

According to the WB's "2035 Report" (2016), about 10% of Vietnam's population is currently in the middle class, and it is expected that by 2035, 50% of the population will join the middle class. This increases the demand of the economy, creating more good jobs not only domestically but also gradually helping Vietnam participate in supply chains and production networks in the APEC region and the world. Rapidly increasing incomes make more and more Vietnamese people in the middle class, thereby changing the consumption structure of the economy, opening up opportunities for investors who know how to seize the opportunity and anticipate that change.

Vietnam has demonstrated its dynamism through active and proactive international integration and strong support for global free trade. Vietnam has signed and participated in 12 free trade agreements (FTAs) and is negotiating 4 new FTAs, including 18 partners from APEC economies.

After 10 years of joining the WTO, Vietnam's import-export turnover in 2017 increased 4 times, reaching over 400 billion USD, equivalent to 170% of GDP. We have made efforts to significantly improve the investment and business environment. To date, there are more than 24,200 FDI projects from 120 countries and territories in operation with a total registered capital of over 310 billion USD, equivalent to 155% of GDP.

Of which, FDI capital from APEC economies in Vietnam alone reached nearly 250 billion USD, accounting for approximately 80% of total foreign investment capital in Vietnam in the past 3 decades. Many leading economic groups of APEC economies have chosen Vietnam for development.regional manufacturing centerand connection in the global value chain.

According to prestigious international organizations and many businesses and investors, Vietnam's competitiveness and business investment environment are increasingly improved. The World Economic Forum (WEF) rankedGlobal Competitiveness Index (GCI) 2017-2018Vietnam's market size increased 20 places in the past 5 years, ranking 55/137 countries, of which market size ranked 31/137 countries..

According to the World Bank (WB) announced on October 31, 2017, 2018 rankingaboutbusiness environment(DB)Vietnam's ranking is 68/190 countries, up 14 places compared to last year (ASEAN-5). In May 2017, the World Intellectual Property Organization (WIPO) published the Global Innovation Index 2017 (GII 2017), Vietnam rose to 47/127 countries and economies (up 12 places).

Dear Sir or Madam,

With a population of approximately 95 million people, a young population structure with nearly 60% of people under 35 years old, and rapidly increasing income, especially among the emerging middle class. On average, in the 10-year period 2007-2016, final household expenditure accounted for 67.3% of GDP and increased by about 16% per year.

Domestic consumption has become an important driver of Vietnam’s economic growth alongside exports. Rising incomes have made Vietnam increasingly attractive to consumer goods manufacturers, especially well-known foreign brands. Smartphones from Apple, Samsung, LG and Sony are popular among Vietnamese people, while brands such as Huawei and Oppo (from China), which have designs and features that are not inferior, are also chosen by young people.

Vietnam has about 52 million Internet users, accounting for 54% of the population, ranking 5th in Asia-Pacific in terms of population with Internet connection, after China, India, Japan and Indonesia. Vietnam is also a country with high mobile connection, with about 55% of Vietnamese people using smartphones. It is forecasted that by 2020, Vietnam will be among the leading countries in the region in terms of the number of mobile phone users. This is both an important platform and a great opportunity to help potential investors easily connect their products and services to a large number of potential customers in Vietnam.

Dear Sir or Madam,

The results that Vietnam has achieved so far are an important source of motivation for Vietnam to confidently and steadily develop more strongly in the coming time. We are determined to build a government that creates development, acts, and serves the people and businesses; promotes international integration; continues to achieve the goal of maintaining solid macroeconomic stability, reforming institutions, legal policies, sustainable development, focusing on job creation and improving people's income.

I would like to emphasize the following major directions:

The first,Focus on improving the quality of institutions, legal policies, promoting the rule of law, encouraging private economic development, enhancing state governance capacity, stabilizing the macro economy towards sustainable growth, ensuring continuous social advancement, and pulling the low-income population to converge with the middle and high-income groups. The desire to become rich is the key to maintaining the movement of a positive cycle of mutual promotion between the increase of the middle class and economic growth.

Focus on increasing investment in infrastructure to help connect urban areas with rural, mountainous and remote areas. Vietnam focuses on developing the health and education system, making efforts to reduce income disparities, and improving the social safety net to protect vulnerable groups from negative shocks.

Monday,developstartup and creative economy through commitments to support and facilitate the nurturing and realization of startup ideas. Vietnam commits to protecting creative ideas and new innovations in startups and enforcing intellectual property rights within the framework of the Intellectual Property Law as well as within the framework of FTAs ​​that Vietnam participates in.

The economic dynamism, open Internet policy and ease of doing business are creating great opportunities for startups in Vietnam. We invite more investors to participate and hope to have more startup support funds and venture capital funds operating in Vietnam to join the wave of startups that is very exciting in Vietnam.

Tuesday, implementing tax reforms towards increasing competitiveness for the economy, aiming for transparent, fair and efficient standards according to high OECD standards. Currently, Vietnam's corporate income tax rate is only 20% and is expected to decrease to 15-17% according to the upcoming tax reform roadmap to support the business community. In addition to competitive tax rates, Vietnam also applies many preferential regulations on tax exemption and reduction for investors in priority areas such as high technology, supporting industry, high-tech agriculture, creating many jobs...

Dear Sir or Madam,

In the vision for the next decade, Vietnam will aim for a dynamic economy based on innovation. Today's Vietnam Business Summit, with 6 thematic seminars on the fields of agriculture; finance; education - health; infrastructure; special economic zones; startups, innovation, will open up many opportunities for cooperation and investment in Vietnam and we will work together towards the APEC 2017 theme: "create new momentum, together build a common future"of Asia-Pacific for peace, stability, cohesion, dynamic development and prosperity.

WishVietnam Business Summitgreat success

Thank you very much./.

According to VOV