JOURNALIST: - Vietnam has now established Comprehensive Strategic Partnerships with nine countries: China, Russia, India, South Korea, the United States, Japan, Australia, France, and Malaysia. What advantages does Vietnam gain from upgrading relationships with these nations?
Minister NGUYỄN HỒNG DIÊN: - Becoming Comprehensive Strategic Partners with major countries has brought Vietnam numerous significant benefits in economics, investment, and international cooperation. Each partner offers unique opportunities and advantages, particularly in trade, investment, and technological development, thereby enhancing Vietnam’s global standing.
First and foremost, these partnerships expand Vietnam’s export markets. For instance, despite global economic volatility during 2020-2023—including the lingering impacts of the COVID-19 pandemic—Vietnam’s export growth was remarkable. By 2023, exports reached $355.5 billion, with key contributions from markets like the United States, China, Japan, and South Korea.
Moreover, these nations facilitate increased trade and attract foreign direct investment (FDI) from globally influential corporations, especially from economic powerhouses like South Korea, the United States, China, and Japan. For example, South Korea remains Vietnam’s largest investor, with cumulative FDI totaling $85.8 billion, accounting for 18.3% of Vietnam’s total FDI.
Collaboration with economically strong nations also boosts Vietnam’s position within global production networks. Prominent corporations from the United States, Japan, and South Korea play a pivotal role in advancing global supply chains, particularly in electronics and component manufacturing. This provides Vietnam with opportunities to deepen its integration into global supply chains, thereby increasing the value of its exports and enhancing national competitiveness.
- All nine nations that are Comprehensive Strategic Partners with Vietnam are also participants in Free Trade Agreements (FTAs). In light of today’s intense trade and geopolitical competition, do you foresee any potential conflicts between the terms of Comprehensive Strategic Partnerships and FTAs?
- In this new era of growth and integration, Vietnam’s establishment of Comprehensive Strategic Partnerships and its participation in FTAs have resulted in a synergy of benefits. For instance, partnerships with the United States, Japan, France, China, South Korea, Russia, and ASEAN countries aim to foster favorable environments for trade and investment. FTAs, in particular, provide tariff reductions, expand export opportunities, and reduce trade barriers. Meanwhile, Comprehensive Strategic Partnerships promote cooperation across broader areas such as politics, security, and culture, establishing a robust foundation for economic collaboration.
Additionally, these Comprehensive Strategic Partnerships not only enable Vietnam to access large markets but also create opportunities to diversify export markets. This reduces dependence on traditional markets while encouraging participation in multilateral trade agreements. This combination of partnerships and FTAs helps Vietnam minimize the risk of trade defense measures from other countries and bolsters stability in international trade relations.
- To fully leverage the benefits of both Comprehensive Strategic Partnerships and FTAs, what specific policies has the Ministry of Industry and Trade implemented?
- While these partnerships and FTAs provide significant opportunities, they also present challenges. These include stricter technical standards for product quality, food safety, and environmental protection; domestic protectionist policies of major economies; and non-tariff barriers and trade defense measures that increase costs and limit export potential for Vietnamese businesses.
To address these challenges, the Ministry of Industry and Trade has outlined several measures and policies to turn obstacles into opportunities. The first priority is to effectively utilize and maximize the benefits of FTAs. To achieve this, the Ministry continues to educate and guide businesses on FTA commitments and ways to leverage the advantages they offer. We are also implementing measures to enhance the competitiveness of key export industries.
Equally important is supporting and safeguarding the legitimate interests of Vietnamese businesses abroad. This includes providing legal assistance and advocacy to address trade disputes. Lastly, we are simplifying import-export procedures to reduce time and costs for businesses, facilitating their participation in global markets.
- Could you elaborate on how Vietnam’s strategic relationships with major nations influence its broader economic development?
- Vietnam’s Comprehensive Strategic Partnerships with major nations significantly impact its economic development. These partnerships strengthen the country’s integration into global value chains and promote the transfer of advanced technology and expertise. For example, collaboration with technologically advanced countries like Japan, South Korea, and the United States helps Vietnam modernize its industries and adopt innovative solutions in fields such as renewable energy, electronics, and information technology.
Furthermore, these partnerships facilitate knowledge exchange and workforce development. By partnering with global leaders, Vietnam can upskill its labor force, aligning it with international standards and increasing the country’s appeal as a destination for high-quality investments.
In the long term, these strategic partnerships also contribute to enhancing Vietnam’s resilience against global economic shocks. Diversifying trade partners and reducing dependency on a few key markets help ensure stability and sustainability in Vietnam’s economic growth.
- As we move forward, what are the Ministry’s priorities for ensuring Vietnam capitalizes on these partnerships?
- Our priority is to build a conducive environment for sustainable trade and investment growth. This involves improving infrastructure, streamlining regulations, and fostering innovation. We are also focusing on promoting high-value-added industries and strengthening Vietnam’s presence in global supply chains.
Additionally, we aim to strengthen bilateral and multilateral cooperation mechanisms, ensuring that Vietnam remains a reliable and attractive partner for global investors. This includes maintaining open dialogue with our strategic partners to address trade barriers and foster mutual growth.
Finally, we are committed to enhancing the competitiveness of Vietnamese enterprises, particularly small and medium-sized businesses. By equipping them with the tools and resources needed to thrive in a competitive global market, we can ensure that the benefits of these strategic partnerships are widely distributed across the economy.
- Thank you, Minister, for sharing your insights.
