Vietnam - Developing independent economy in the new context

Since regaining national independence 66 years ago, Vietnam has made significant progress in becoming one of the world’s leading rice exporters and a middle-income country with per capita income of over US$1,000.

In an interview granted to a VOV reporter, Prof. Nguyen Quang Thai, Vice President and Secretary General of the Vietnam Economic Association, affirmed that Vietnam has been advancing steadily in its international integration process.

In 1990, Vietnam’s major export markets were the Soviet Union and other socialist countries with a total turnover of US$2 billion. The figure is now 40 times higher as its markets have expanded to the US, the EU, Japan, China, and Southeast Asian countries, he said.

After normalizing the relations with the US and joining the World Trade Organization, two-way trade with foreign countries has increased considerably.

Since 1988, more than US$200 billion in Foreign Direct Investment (FDI) has poured into Vietnam, one-third of which was already disbursed. International donors have recently committed to provide Vietnam with US$40 billion in Official Development Assistance (ODA) with preferential conditions related to interest rates and grace period.

However, in the context of globalization, national independence and international integration are interactive. Therefore, it is crucial to make necessary adjustments to minimize the dependence of Vietnam’s economy on its partners and ensure national interests.

He pointed out some shortcomings such as the trade deficits with some partners, FDI mobilization reaching 25 percent of the total capitalization value, funding mobilised from outside resources exceeding 30 percent of total investment capital, and proposed some adjustments to improve the quality and effectiveness of the economy.

Prof. Thai also proposed considering policies on economic, scientific, and technological integration, as well as medium- and long-term restructuring of the economy, especially when Vietnam is negatively affected by the global financial crisis and economic downturn.

Regarding the development of an independent economy in the context of international integration, Prof. Thai said it does not mean applying a close-door policy.

We should be independent in making and implementing policies to protect national interests and make full use of its advantages, he stressed, adding that broadening international cooperation will help increase the nation’s status in the world.

Asked about what should be done to develop the economy and narrow the gap between Vietnam and other countries in the region, he said it is imperative to achieve the three strategic breakthroughs as set by the 11th National Party Congress.

Completing socialist-oriented market economy institutions with a focus on creating an equally competitive environment and pushing through administrative reform; shifting from the State commanding the economy to the State creating developments; and developing high-quality human resource; in combination with scientific and technological development and application, are important factors behind economic development.

Prof. Thai said Vietnam’s developments depend on the effective mobilization and use of all resources and advantages such as geography, natural resources, and young labour force.

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