Vietnam’s efforts to improve international trade policy

Executive Vice President of the Japan External Trade Organisation (JETRO) Hironobu Kitagawa, who was once JETRO’s Chief Representative in VN, speaks about the country’s efforts to improve its international trade policies.

Executive Vice President of the Japan External Trade Organisation (JETRO) Hironobu Kitagawa. VNA/VNS Photo

Executive Vice President of the Japan External Trade Organisation (JETRO) Hironobu Kitagawa, who was once JETRO’s Chief Representative in Việt Nam, speaks to Vietnam News Agency about the country’s efforts to improve its international trade policies on the occasion of its 45th National Reunification Day (April 30)

What do you think about Việt Nam's socio-economic development achievements over the years, especially after the Đổi mới (Renewal) process?

Since the launch of the Đổi mới policy in 1986, the economy has drastically developed. According to the United Nations Conference on Trade and Development (UNCTAD), Việt Nam’s GDP jumped from US$5 billion in 1986 to $245 billion in 2018 - the highest rate in ASEAN. When compared to the approximately 2.5-fold growth by Japan's GDP in the same period, we can see how rapid Việt Nam's economy has developed.


One factor for the GDP growth is the success in drawing foreign companies to the country as well as expanding exports. Regarding exports, the amount in 1986 was less than one-tenth of that of Malaysia or Thailand. But in 2018, it increased to more than $240 billion, catching up with both countries.

The efforts the country made to improve its international trade policy by monitoring world trends have been highly praised by foreign companies. Specifically, these efforts include the enforcement of the US-Vietnam Bilateral Trade Agreement and the accession to the World Trade Organisation (WTO) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Việt Nam's efforts to prepare an investment environment open to a broad range of countries and regions, such as hosting the Vietnam-Japan Joint Initiative where Japanese companies and governmental organisations have discussions with the governments of both countries and the Vietnam Business Forum (VBF) joined by Western companies, are also believed to have contributed to its high praise.

Do you have any recommendations for our leaders to promote sustainable development?

According to our survey on Business Conditions of Japanese Companies in Asia and Oceania in 2019, the business sentiment of Japanese companies in Việt Nam was the highest within ASEAN (63.9 per cent of respondents answered that they intended to expand).

 

Regarding the merits of the investment environment, the answers of "market scale and growth potential" and "political and social stability" ranked top, with the ratio of both increasing from the previous year. This can be interpreted as praise of the stability of Việt Nam's policy to open its economy to other countries and its governance system.

In the meantime, respondents were most concerned about "increased labour costs" (61.1 per cent), "unclear policy management by local government" (42.6 per cent) and "high employee turnover rate" (38.6 per cent), which were listed at the top of "the risks related to the investment environment".

While responses pointing out risks related to administrative procedures have gone down as a whole, when asked about these risks, respondents had numerous requests, such as over retractions of investment incentives and power shortages. Solving these concerns one by one will facilitate continued investment and expansion of projects.

Japan and Japanese companies have greatly contributed to Việt Nam's socio-economic development. How can we further strengthen this good relationship?

While foreign companies, including Japanese companies, have until now regarded Việt Nam as a site for production, the country has now grown beyond being merely this.

We need to be vividly aware of the potential of synergy born through combining the knowledge of Japan and Việt Nam. With the birth of unicorns such as VNG in the IT field, in particular, Việt Nam's potential may be higher than that of Japan. The exchange of youth, such as university students, and highly skilled human resources of both countries is also important to promote synergy.

In addition to that, one potential field where synergy has the potential to be born is in the agricultural, forestry and fishery industry, the largest in Việt Nam. Approximately 40 per cent (37.7 per cent) of the country's working population are engaged in the industry. However, as it accounts for a little under 20 per cent of GDP by industry, greater value must be added to it. — VNS

 
 

Other News

.
Thousands of hectares of industrial zones approved in first quarter
Thousands of hectares of industrial zones approved in first quarter
BUSINESSicon  07/04/2021 

Dozens of industrial zone projects in 13 cities and provinces covering have been approved in the first quarter, promising thousands of hectares of new space for investors over the coming years.

HCM City approves 8 projects to boost industry, trading, e-commerce, exports
HCM City approves 8 projects to boost industry, trading, e-commerce, exports
BUSINESSicon  07/04/2021 

The HCM City Department of Industry and Trade said eight key projects have been approved by the city government to promote the industry, trading, e-commerce, and exports and facilitate goods transport.

Korean conglomerate buys 16.3 percent stake in Vietnam's largest retailer
Korean conglomerate buys 16.3 percent stake in Vietnam's largest retailer
BUSINESSicon  06/04/2021 

Korean conglomerate SK Group said it will make a strategic investment in VinCommerce, Vietnam’s largest retailer, to tap into the fast-growing e-commerce segment in the Southeast Asian market, reported Yonhap News Agency.

Inflation not a source of concern for Vietnam: SSI
Inflation not a source of concern for Vietnam: SSI
BUSINESSicon  06/04/2021 

Vietnam’s consumer price index (CPI) is set to average 2.89% in 2021, below the government’s target of 4%.

Shares gain on bank and real estate stocks
Shares gain on bank and real estate stocks
BUSINESSicon  06/04/2021 

The market closed higher on Monday as a series of banking and real estate stocks surged, propelling the indices.

VIETNAM BUSINESS NEWS APRIL 6
VIETNAM BUSINESS NEWS APRIL 6
BUSINESSicon  06/04/2021 

Vietnamese fruit and vegetable sector targets export revenue of $10 billion

Capital market must work to invigorate SOEs
Capital market must work to invigorate SOEs
BUSINESSicon  05/04/2021 

Developing the capital market will help in promoting State Owned Enterprises (SOEs) to mobilize capital and reduce the proportion of commercial credit loans, and diversify in forms of mobilization to supplement capital.

Prices surge on stock market, VN Index reaches record high
Prices surge on stock market, VN Index reaches record high
FEATUREicon  05/04/2021 

Many new investors have made high profits after the stock market reached a record high.

Vuong leaves Vinmart, Quang takes over
Vuong leaves Vinmart, Quang takes over
BUSINESSicon  05/04/2021 

Billionaire Nguyen Dang Quang will build The CrownX into a $10 billion firm and change the name of VinMart to WinMart, which will follow a new operation model after Vingroup, owned by Pham Nhat Vuong, leaves.

Wind power: investors wait for PM’s decision on Feed-in-Tariff price
Wind power: investors wait for PM’s decision on Feed-in-Tariff price
FEATUREicon  06/04/2021 

The Feed in Tariff (FIT) price of VND2,000 per kwh will expire in seven months, but the price for the next period has not been fixed yet.

VIETNAM BUSINESS NEWS APRIL 5
VIETNAM BUSINESS NEWS APRIL 5
BUSINESSicon  05/04/2021 

Manufacturing, processing maintains strong growth in Q1

Da Nang warns about property speculators
Da Nang warns about property speculators
BUSINESSicon  05/04/2021 

The Da Nang Department of Natural Resources and Environment has warned that the tricks of several property speculators could drive up land prices in the central city after recent announcements of adjusted master planning.

Vietnam’s manufacturing sector strengthens in March
Vietnam’s manufacturing sector strengthens in March
BUSINESSicon  05/04/2021 

Vietnam’s manufacturing sector gained growth pace at the end of the first quarter, with marked increases in output, new orders and exports, leading to stronger rises in employment and purchasing activity, according to a report by tIHS Markit.

Vietnam earns $11bil from agricultural exports
Vietnam earns $11bil from agricultural exports
BUSINESSicon  05/04/2021 

In the first quarter, agricultural products such as rubber, tea, vegetables, cassava, shrimp and forestry products earned high export value, bringing total export turnover of agricultural products to nearly US$11 billion.

Field-mouse meat more expensive than pork, wild vegetables pricier than US beef
Field-mouse meat more expensive than pork, wild vegetables pricier than US beef
BUSINESSicon  05/04/2021 

The price of field-mouse meat in the Mekong Delta is now higher than that of pork. And in Hanoi, wild vegetables cost more than imported beef bacon, or 10 times more than chicken.

Tier system revamped for high-tech strategy
Tier system revamped for high-tech strategy
BUSINESSicon  05/04/2021 

Driven by its digital transformation strategy, Vietnam will set more favourable standards for high-tech businesses’ recognition from next month in a move to develop the country into a high-tech hub.

For natural development of the Mekong Delta
For natural development of the Mekong Delta
BUSINESSicon  04/04/2021 

Resolution 120 on sustainable development of the Mekong Delta issued three years ago has helped create “living with nature” methods as targeted.

Night businesses on Bui Vien Street suffer heavy losses
Night businesses on Bui Vien Street suffer heavy losses
BUSINESSicon  04/04/2021 

Business owners on Bui Vien pedestrian street in downtown Ho Chi Minh City are suffering from a lack of customers due to the impact of the COVID-19 pandemic.

Ministries tighten land management to prevent 'land fever'
Ministries tighten land management to prevent 'land fever'
BUSINESSicon  04/04/2021 

The Ministry of Construction (MoC) and the Ministry of Natural Resources and Environment (MONRE) have requested provinces and cities review State management on land prices amid 'land fever' in some localities.

New trading system in place this year: HoSE
New trading system in place this year: HoSE
BUSINESSicon  04/04/2021 

The new information technology system for the entire stock market, known as KRX, is expected to be put into operation this year, according to the Ho Chi Minh Stock Exchange (HoSE).

 
 
 
Leave your comment on an article

OR QUICK LOGIN