New vision needed for future of Asia: Deputy PM

Speakers at the plenary seesion “Economic Outlook” at the Horasis Asia Meeting 2018.-VNS Photos Viet Dung

Dr. Frank-Jurgen Richter, chairman and founder of Horasis, praised Vietnam for its long-term vision and use of technologies to benefit people and businesses.

“It’s part of their efforts to boost economic integration,” he said. “ Vietnam is a great success story. Its economy is a new engine of growth.”

At the core of Vietnam’s economic development model is a strategy based on science, technology and innovation, he noted.

“Vietnam is considered by the international community a model of a successful transition economy.”

Richter noted that ASEAN was also working with like-minded partners to strengthen the open multinational trading system.

Addressing the opening ceremony, Deputy Prime Minister Trinh Dinh Dung said the Horasis meeting aimed to discover the important factors affecting Asia’s future.

“With all the economic uncertainties brought by many factors, each country and each enterprise should be aware of what to do to ensure their sustainable development,” Dung said.

“More importantly, more developed countries should support developing countries in the region for the sake of peace, development and prosperity,” he added.

Dung said since its implementation of the Doi moi (renewal) in 1986, Vietnam has had impressive GDP growth, approaching 7 per cent this year.

Dung noted that Vietnam’s average economic growth reached 6.63 per cent per year in the 1986 - 2017 period, and is expected to rise to 6.81 per cent this year, one of the highest growth rates in the world.

Nearly 26,000 FDI enterprises from more than 130 countries and territories are operating in Viet Nam, with committed capital of over US$330 billion.

With deep international integration, Vietnam has become a reliable partner, with trade relations with more than 200 countries and territories around the world, Dung said.

Vietnam’s economy is ranked 44th worldwide in terms of GDP and 34th in terms of Purchasing Power Parity (PPP). Its income per capita has increased by nearly $2,540, and PPP by nearly $7,640.

Viet Nam’s 2018 Global Competitiveness Index is ranked 77th out of 140 countries, and 69th out of 190 economies in World Bank’s Doing Business report.

Its workforce is young, well trained and well versed in technological advancements, he said.

As a member of the World Trade Organisation, Vietnam has participated in 12 free trade agreements, approved the Comprehensive and Progressive Agreement for Trans-Pacific Partnership in November, and is working with the EU to finalise the trade ageeement between the two.

The country now has an important place in the world’s supply chain, and investing in Viet Nam can be an opportunity to approach big markets in the world, according to Dung.

Vietnam will apply more innovative policies and business models, especially in hi-tech industries, focusing on infrastructure, and will encourage investment from private firms, as well as develop its partnership with other countries and territories, he said.

The country will continue to stabilise the macroeconomy, and ensure national financial and monetary security, he added.

In addition, it will continue to improve the business investment environment, remove barriers for businesses, strive to put Viet Nam into the leading group of ASEAN, and reach the standards of OECD (Organisation for Economic Cooperation and Development) member countries in terms of competitiveness, Dung noted.

Continued buoyancy

The global economic outlook for 2019 is expected to be more certain given Asia’s continued buoyancy, speakers said.

Speaking on the sidelines of the meeting, Don Lam, CEO of VinaCapital, told Vietnam News: “Vietnam’s stock market has been a rollercoaster for much of this year, just like other regional stock markets, although the country has fared slightly better than some other markets.”

“We expect stock market volatility to continue into 2019, but that’s mainly due to external factors like the trade war [between China and the US], US interest rate hikes, and a weakening Chinese currency,” he said.

Pham Hong Hai, CEO of HSBC Vietnam, said Vietnam had witnessed strong economic growth with growing FDI inflows.

“We also see potential trade diversion as US import demand shifts away from China to other ASEAN markets like Vietnam,” he said.

“While this trend is a good sign, it also puts more pressure on the country and businesses when it comes to infrastructure development and more productive resource requirements that could enable the country to take advantage of the new trade dynamic,” he said.

“We have seen a rising trend of protectionism and nationalism in the world. However, regional and global issues can’t be resolved by one single country or company,” he said.

The meeting also discussed investment opportunities in Binh Duong, artificial intelligence (AI), the ongoing development of the education sector, and business innovation, investing in Asia among others.

During the event, Binh Duong Province-based Becamex IDC Corporation signed MoUs with Nitol Niloy Group (Bangladesh) and Intelizest (Singapore).

The signings were attended by Tran Thanh Liem, chairman of the province’s People’s Committee and Mai Hung Dung, vice chairman of the People’s Committee.

The agreement with Nitol Niloy is expected to strengthen trade and investment in industrial development, education and electronics, with the aim of building a smart city.

The signing with Intelizest will foster collaboration in blockchain, AI and Internet of Things to support technology applications for enterprises and the government.

The Horasis Asia Meeting was hosted by Binh Duong People’s Committee in collaboration with the Horasis Global Visions Community, Becamex IDC Corporation, VSIP Group, All India Management Association and the Young Premier Leadership Organisation.

The meeting was convened by Horasis: The Global Visions Community.