Vietnam - PM orders to stop calling for investment in steel and cement projects

Vietnamese Prime Minister on December 14 ordered to stop calling for investments in steel, cement and apparel projects. Instead of this, Vietnam should promote the investment in high-technology projects and groups.

The information was stated at the 27th diplomatic conference.

For example, Intel Group earned $1.5 billion from exports this year and the figure was expected at $5 billion by 2015. Only this can change the economic structure along with shifts in investment attraction polices, the Prime Minister emphasized.

Vietnam’s highest priority in the international relation is the concerns of the national benefits, meaning that we have to think of potential consequences before deciding any important plan with suitable roadmap and projection, the Prime Minister noted. For example, if building up to 11 hydropower plants on Mekong River, we will likely lose Mekong Delta and 21 million people living in this location.

Dao Tran Nhan—Head of Vietnam Chamber of Commerce in US said that over 12,000 people in Washington D.C were doing lobby mobilization on the complex lawsuit of refusing Vietnam’s tra and basa as catfish. US enterprises used to accompany with commercial negotiation groups and Vietnamese firms also need to be more cautious and active in asking the chamber’s helps in similar cases.

Mr Tran Trung Thuc, Trade Counsellor in Belgium and EU was quoted as saying that European enterprises are very difficult and changing so Vietnamese firms need to change export structure as well. At this time, Vietnam’s commodities are able to enter the market.

Concerning the trade relation with China, Mr Nguyen Duy Phu—Vietnamese Trade Counsellor in the neighbouring country confirmed that Vietnam’s trade deficit with China till late November 2011 was $12.36 billion, up 6.1% year on year. The reliance of Vietnam on China is very high. ASEAN-China Free Trade Agreement helped boost exports of two sides but Chinese goods have better competitive strength. By 2015, Vietnam will have to cut tariffs under ASEAN-China FTA so China’s export to the region will continue rising sharply.

Phu proposed training for Vietnamese enterprises about China’s tariff incentives as well as new regulations on food and seafood. If not, Vietnamese businessmen may suffer big damages.

Participants at the conference also admitted less positive spirit of some trade staffs and negative relation between ambassadors and commercial staffs.

VietBiz24

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