East Sea crisis calls for new economic route
Present tensions in the East Sea have created opportunities for Vietnam to adjust its economic policies with China to avoid becoming too dependent.
This is the view of Vo Tri Thanh, Deputy Director of Vietnam's Central Institute for Economic Management (CIEM) and two other speakers at a seminar on Economic Autonomy in an Interdependent World organised by the Vietnam Chamber of Commerce and Industry (VCCI) in Hanoi on July 3.
He said that Vietnam shares a great economic relationship with China, including high imports and exports, but integration into the world market has its risks.
Therefore, the present situation has created opportunities for Vietnam to review its economic policies with China and adjust policies to avoid dependence on its neighbour in terms of economic relations.
To end any dependence on China and avoiding risks involved in doing business with Chinese enterprises, Vietnam should continue economic restructuring and integration, he added.
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Thanh said Vietnam has promoted the restructuring of its national economy and integrated it further into the global economy and the conflict on the East Sea between Vietnam and China is a chance for Vietnam to speed up its economic restructuring.
Vietnam should actively seek supplies from other countries and new export markets, Thanh said, adding that Vietnam should seek actively international commercial agreements with other nations.
Economic expert Pham Chi Lan said Vietnam depends a great deal on imports and exports with China in some sectors.
Export value from Vietnam to China rose from US$1.5 billion in 2000 to $13.3 billion in 2013, Lan said.
At the same time, the value of imports from China grew from US$1.4 billion 2000 to US$37 billion in 2013.
Lan recalled Vietnam enjoyed a trade surplus of US$135 million with China in 2000, but had a trade deficit of US$23.7 billion in 2013.
She said the change is due to high imports of equipment and material for production into Vietnam. 70% of the imports from China are industrial support products, machinery, seeds, fertilisers and animal feed.
Economic expert Le Dang Doanh said integration with the rest of the world has been an advantage for Vietnam in protecting its national sovereignty. Vietnam has consolidated its internal force and developed its economy thanks to that integration.
Doanh said Vietnam has established economic relations with the second largest economy in the world and continued those relations to avoid depending on one economy.