Towards Sustainable, Harmonious APEC Development

Vietnam Business Forum reporter had an exclusive interview with Mr Hoang Van Dung, President of APEC Business Advisory Council Vietnam (ABAC Vietnam) and Vice President of the Vietnam Chamber of Commerce and Industry (VCCI), on ABAC activities at the APEC Singapore 2009.

As the president of ABAC Vietnam, could you discuss ABAC’s recommendations put forth at these APEC meetings?

In the last couple of years, APEC economies as well as the world economies have been inflicted by the global economic crisis. Thus, one of the major topics of the APEC as well as the ABAC is to respond to the crisis and prepare for the economic recovery. All APEC economies take deep interest in sustaining and harmonising growth, especially preparing for the global economic recovery, which is expected to be in the last half of next year.

The second recommendation is to support the multilateral trading system. At present, WTO negotiations are stagnating. APEC supports efforts to conclude the WTO negotiation rounds in 2010, call member ministers to resume the Doha Round, take advantage of every bilateral and multilateral opportunity to unbind difficulties and advance negotiations in all fields. ABAC also recommends supports for extending the time for APEC members to resist protectionism until 2010 and encourages momentum for advancing the Doha Round.

The third recommendation is to accelerate regional economic integration. APEC will step up regional economic integration in three specific ways: the acceleration of trade liberalisation “at the border”; improvement of the business environment “behind the border”; and enhancement physical connectivity “across the border.” ABAC has identified two priorities. The first is for APEC action plans on business environment to be submitted to the Summit, and goals of APEC members need to revolve around domestic reform to ease the business environment and the reduction of costs by 25 % in 2015 and at least 5 % in 2011 compared with 2009. Member countries should implement reforms in five fields, namely Starting a Business, Getting Credit, Trading Across Borders, Enforcing Contracts and Dealing with Permits. The second priority is to start negotiations on the Free Trade Area of the Asia-Pacific (FTAAP). To date, preliminary assessments on FTAAP hosted by China, New Zealand and South Korea have not been completed. Most member economies see FTAAP as a long-term prospect of APEC.

The fourth recommendation is to strengthen APEC. This is the first time APEC cooperation strengthening is considered one of the main contents. APEC members urge reformation of APEC and promote the role of APEC in regional and international forums.

Apart from the above topics, does ABAC have any other recommendations?

In addition to the above topics, other aspects will also be discussed this year such as economic cooperation, including Japan’s proposal on enhancing food security – one of APEC’s priorities in 2010 to be held in Japan. This proposal suggests building an APEC food security programme, organising the first APEC Agriculture Ministers Meeting and establishing a food security workgroup. Other non-economic contents like enhancing human security, enhancing cooperation against terrorism and enhancing technical cooperation, etc. will also be discussed at the meetings.

What development support measures does ABAC recommend, especially for small and medium-sized enterprises in Vietnam?

Firstly, ABAC put forth recommendations on resisting protectionism because many countries tended to raise protectionist barriers on the backdrop of the global economic crisis. We particularly call upon other countries to open their markets for Vietnam to accelerate exports.

The second is the continuation of supports for small and medium-sized enterprises by reducing input costs. According to the recommended targets, transaction costs will be reduced by 25 % in 2015 and at least 5 % in 2011 compared with 2009.

The third is to reduce administrative procedures and enhance financial supports for the small and medium-sized business sector. Particularly, current stimulus packages must support SMEs to live through the current economic crisis.

APEC is a very important market for the Vietnamese economy as 60 % of its trade is within APEC and 80 % of its inputs are from APEC.

In the past time, ABAC Vietnam actively worked with the ABAC and put forth solutions and recommendations to APEC governments and the Vietnamese Government. In August 2008, Vietnam successfully hosted the ABAC Meeting 3 in Da Nang City and received high praises from participants. Vietnam also proposed recommendations to support small and medium-sized enterprises to minimise difficulties and challenges.

Vietnamese State President will deliver a speech and will be the main lecturer at the APEC CEO Summit Singapore 2009. Could you talk more about this?

One of the important events at this APEC meeting is the Vietnamese State President’s invitation to make a speech at the APEC CEO Summit Singapore 2009 themed “Rebuilding the Global Economy: Crisis and Opportunity.” Expectedly, 15 state leaders will speak to attendants from 800 world-leading groups.

President Nguyen Minh Triet is invited to make a speech and to be a main lecturer at the summit session on “Investments in Emerging Markets” on November 14. Singapore highly appreciates the role of Vietnam in the region as well as its achievement in addressing the economic crisis and developing the economy.

A delegation of Vietnamese businesses will accompany State President Nguyen Minh Triet and will attend the Vietnam – Singapore Business Forum. Could you elaborate more about this?

After wrapping up the attendance to the APEC Summit, Vietnamese President Nguyen Minh Triet will officially visit Singapore on November 16 and 17. Apart from the bilateral visit, Vietnam will also hold the Vietnam – Singapore Business Forum to boost economic ties between the two nations.

About 50 Vietnamese enterprises will accompany the President. Singapore has built many industrial parks in Vietnam and regarded Vietnam as a key investment destination. Thus, Singapore expects to increase investments into Vietnam. This is actually a useful activity to attract foreign investors not only in Singapore but also in the world into Vietnam. Investment capital is very important to Vietnam when the global economy is on the path to recovery. Vietnam and Singapore will also accelerate technology transfer, management, financial cooperation and other fields. As far as I am concerned, Indochina will also organise a business matching meeting in Singapore on November 11 to attract investment capital from APEC member economies into Vietnam.

Posted by VBN on Nov 10 2009. Filed under Int'l Cooperation. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry